DebbieLester

The solicitation and SSP indicate that a limited review of the business proposal will be accomplished prior to establishment of the competitive range. The solicitation goes on to describe what the limited review, at a minimum, would entail (e.g. comparison to Govt cost estimate, check for mathematical accuracy, a review of proposed assumption for consistency with soliciation assumptions), and that a complete cost analysis and cost realism analysis would will be accomplished after establishment of the competitive range or prior to award. However, I have received some feedback that the solicitation langauge may not be appropriate. I do understand that we need to take into account the relative price of proposals but I’m not so sure that means that we need to do a cost realism analsyis or cost analysis prior to competitive range.

For a cost reimbursement solicitation, to what degree must cost realism be considered prior to estabilishing a competitive range? Is a complete cost realism analysis required?

When the threshold is met, FAR indicates that the Contracting Officer must obtain cost or pricing data unless one of the exceptions in 15.403-1( applies. One of the exceptions is that prices agreed upon are based on adequate price competition. FAR further indicates that a price is based on adequate price competition if 2 or more responsible offerors, competing independently, submit priced offers that satisfy the Government?s expressed requirement, and 1) if award will be made to the offeror whose proposal represents the best value where price is a substantial factor in source selection, and 2) there is no finding that the price of the otherwise successful offeror is unreasonable. Most discussions on the topic of cost and pricing data that I have read seem to only rely on the fact that there is competition to justify the exception. They seem to miss the fact that it needs to be ADEQUATE competition. Regarding the requirement that the award must also represent the best value where price is a substantial factor in the source selection - There is a best value continuum and depending on where on that continuum the specific evaluation process falls, price may or may not be considered a substantial factor. Therefore, cost and pricing data may be needed. Am I missing something? P.S. The FAR seems to leave the definition of "substantial" up to the discretion of the CO.