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QUESTION: Can an agency just make award to the highest-rated, highest-priced proposal without explaining the "tradeoff"? I saw a recent GAO decision that makes me wonder about this. In Green Earthworks Construction, Inc., B-410724 et al., Feb. 2, 2015, the Air Force issued a solicitation for abatement services for hazardous materials. Here is the link to the GAO decision: http://www.gao.gov/assets/670/668348.pdf The RFP stated that there were only TWO EVALUATION FACTORS: PAST PERFORMANCE and PRICE. Although it did not use the phrase "Performance Price Tradeoff (PPT)," it appears that this
I am researching the Performance Price Trade-off (PPT) method used by the Air Force. I have never seen one done before at my agency. We are not the Air Force. FACT PATTERN: Say an agency does PPT. It announces in the solicitation that the the evaluation criteria and methodology will be as follows: Price and Past Performance are weighted equal. The agency will first RANK proposals by PRICE. So the agency will do a Price Reasonableness analysis, and then rank proposals from Lowest Price to Highest. If a proposal's price is found unreasonable (meaning TOO HIGH), it will be thrown out. The a