We have 3 competitive offerors for a CPFF completion contract. One offeror is clearly technically superior to the other 2 (Outstanding vs 2 Acceptables). However, in the cost realism analysis, there was one part of the BOM they could not get pricing for at the moment, but they said if awarded they would be able to get the part. In the cost realism we adjusted them up based on the part's historical data. Even with the cost realism adjustment, they are still the lowest price. My legal says we should go into discussions with all 3 offerors now since he thinks this constitutes a material omission that requires the offeror to revise their proposal, but I think it's just a standard cost realism adjustment. What are your thoughts? Is it a material weakness if they couldn't price out one part? Any similar situations out there  

seems to me there needs to be a dollar amount assigned to the omission and a % to the total proposed bid amount in order for there to be a material omission conclusion. Also, did the bidder estimate the cost of the questionable items? If so, there is nothing wrong with that, is there?

Edited July 21Jul 21 by Neil Roberts
added "proposed bid amount"

So the estimated cost they included in their offer doesn't include the material in question? If not, then I think you would need a proposal revision if you want the estimated cost in the contract to include that amount.

Based on what you have written, I don't see why you would include the other two offerors in the competitive range.

5 hours ago, FLContracts said:

We have 3 competitive offerors for a CPFF completion contract. One offeror is clearly technically superior to the other 2 (Outstanding vs 2 Acceptables). However, in the cost realism analysis, there was one part of the BOM they could not get pricing for at the moment, but they said if awarded they would be able to get the part. In the cost realism we adjusted them up based on the part's historical data. Even with the cost realism adjustment, they are still the lowest price. My legal says we should go into discussions with all 3 offerors now since he thinks this constitutes a material omission that requires the offeror to revise their proposal, but I think it's just a standard cost realism adjustment. What are your thoughts? Is it a material weakness if they couldn't price out one part? Any similar situations out there  

Gut reaction take it or leave it. I am going to side with legal with just anecdotal comments. Based on them you may find they are applicable or not.

First off what does the solicitation say with regard to providing costs for all elements of the work? By example does it say if you do not have any information regarding some of the direct costs you can just not include and we just figure for you? Or in other words do you get the crux of such a scenerio?

So what did the other 2 provide, a similiar position regarding BOM? If not then why can't the one and if none provided then what did you do with the cost realism on the other 2?

I am surprised that if you could do cost realism the offeror could not do so in their proposal so to speak. In other words they could not get quotes, they have no historical data (surprising if technically they are at the top?) and or they could not provide any market research to support their BOM?

Material weakness would depend on the wording of the solicitation and what information "shall be" required but in the end I wonder why the government would depend on their own realism numbers and not ask the contractor for theirs. Asking again just the one or all for the costs would depend on the wording of the solicitation.

(Edited to note that I pushed "send" and then say that another response was sent 13 minutes before mine.)

Here is another perspective based upon the OP scenario of the Offeror didn’t provide a price? Is the Offeror’s proposal non-responsive because not compliant with Section L in providing the required pricing information (obviously pending how the Section L was written)?

For cost realism analysis of the Offeror, and the Offeror did price the material, was the evaluation team able to determine the cost realistic for the work to be performed, reflect clear understanding of the requirements, and consistent with the unique methods of performance on the material cost? If so, then met the criteria to determine probable cost. Otherwise, you are going into discussions.

20 hours ago, FLContracts said:

What are your thoughts? Is it a material weakness if they couldn't price out one part?  

Yes. Plainly so.