13.106-1(a)(2) and price alone

[Sam101]

Hi, what does it look like in practice when doing a part 13 buy and using price as the only evaluation factor? 13.106-1(a)(2) says "(price alone or price and other factors, e.g., past performance and quality)." And so, I imagine that sections L and M will look like this:

Instructions to Offerors:

Fill in the unit price of the CLINs in section B.

Evaluation Factors and Basis for Award:

Price, LPTA.

So, in this case I imagine receiving a proposal with only a dollar amount and nothing else, and I award to the lowest price, and how do I know whether or not the offeror read the SOW? If I ask for a statement of understanding of the SOW, I would be evaluating the offeror's statement of understanding of the SOW for technical acceptability now wouldn't I? And so it's not only price that I'm evaluating, it's 1) Understanding of the SOW (non-price factor) and 2) Price... how is this "price alone" as referenced at 13.106-1(a)(2)?

 

[Jacques]

1 hour ago, Sam101 said:

Hi, what does it look like in practice when doing a part 13 buy and using price as the only evaluation factor? 13.106-1(a)(2) says "(price alone or price and other factors, e.g., past performance and quality)." And so, I imagine that sections L and M will look like this:

Instructions to Offerors:

Fill in the unit price of the CLINs in section B.

Evaluation Factors and Basis for Award:

Price, LPTA.

So, in this case I imagine receiving a proposal with only a dollar amount and nothing else, and I award to the lowest price, and how do I know whether or not the offeror read the SOW? If I ask for a statement of understanding of the SOW, I would be evaluating the offeror's statement of understanding of the SOW for technical acceptability now wouldn't I? And so it's not only price that I'm evaluating, it's 1) Understanding of the SOW (non-price factor) and 2) Price... how is this "price alone" as referenced at 13.106-1(a)(2)?

 

An evaluation based on price alone is NOT the same as an LPTA.  An evaluation under simplified procedures based on price alone does not consider quality or risk or whether the quoter's or offeror's proposed approach demonstrates an understanding of the Government's requirements, even on a pass/fail basis, but takes as a given each vendor's promise to perform.  So your example above (where you consider understanding) would not be an evaluation based on price alone.

As the RFQ should identify the "basis on which award will be made" (FAR 13.106-1(a)(2)), the RFQ should list this criterion if the Government intends to evaluate it.  If the RFQ said the evaluation was going to be price alone, but the Government evaluated quotes against additional criteria, that would be solid grounds for protest.  Myers Investigative and Security Services, Inc., B-287949.2, July 27, 2001.  The simplified procedures at FAR 13.106-1(a)(2) are best understood in contrast to FAR 15.101-1(b) (relative importance) & 15.304(c)(2) (quality).

EDIT:  All this said, realize the FAR 9.103 related to responsibility still applies even when the sole basis for selecting the apparent successful vendor is price alone (as potentially would the need to go through the SBA's COC process if the apparent successful vendor is a small business and found not responsible). 

[Sam101]

1 hour ago, Jacques said:

An evaluation based on price alone is NOT the same as an LPTA.  A source selection based on price alone does not consider quality or risk or whether the quoter's or offeror's proposed approach demonstrates an understanding of the Government's requirements, even on a pass/fail basis, but takes as a given each vendor's promise to perform.  The simplified procedures at FAR 13.106-1(a)(2) are best understood in contrast to FAR 15.101-1(b) & 15.304(c)(2).

EDIT:  All this said, realize the FAR 9.103 related to responsibility still applies, as potentially would the need to go through the SBA's COC process if the apparent successful vendor is a small business and found not responsible. 

Thanks Jacques, and so, in accordance with 13.5 I can use this super easy "price alone" approach on a commercial item acquisition as long as the IGCE is under $7 million? Just send out the SOW and ask for a price and award to the lowest price? I know it's probably not a good idea, but is 13.5 saying that I can do that?

[Jacques]

35 minutes ago, Sam101 said:

Thanks Jacques, and so, in accordance with 13.5 I can use this super easy "price alone" approach on a commercial item acquisition as long as the IGCE is under $7 million? Just send out the SOW and ask for a price and award to the lowest price? I know it's probably not a good idea, but is 13.5 saying that I can do that?

If FAR Subpart 13.5 is available, I don't see anything that would prevent an evaluation based on price alone.  Obviously FAR 13.106-1(a)(2) says, "Contracting officers are encouraged to use best value," but it seems to be a tool in the toolbox.

EDIT:  There might be other rules that prevent it.  For instance, for DoD, if the provision at DFARS 252.213-7003 is prescribed, then it seems the Government is required to evaluate past performance, so a "price alone" approach wouldn't be available.