Acquisition Source Selection - Common Evaluation Factors
Technical and Management Factors
Technical and management factors provide insight into how the offeror proposes to perform the current requirement. Develop specific technical factors for each acquisition, taking into consideration the objectives and requirements of the acquisition. These factors are the discriminators that are the most likely to reveal substantive differences in technical approaches or risk levels among competing proposals. However, too many factors and subfactors may lead to a leveling of ratings. Strive to select a limited number of evaluation factors and subfactors, since more is not necessarily better and extends the evaluation process. Other non-cost evaluations factors include compliance with solicitation requirements, technical excellence, management capability, and prior experience.
Past Performance
Past performance is not the same as contractor experience. The past performance factor indicates the offeror's track record. How a contractor performed on previous contracts must be included as an evaluation factor in competitively negotiated acquisitions.
Past performance is usually one of the primary evaluation factors but not necessarily one of the most important. The relative importance of past performance as an evaluation factor must be based on its importance in determining which proposal offers the best value. Many have found that using past performance and price as the only evaluation factors is an effective and efficient approach.
A thorough evaluation of past performance, to include information that is not submitted in proposals, ensures that awards are made to good performers rather than to just good proposal writers.
Elements of Past Performance Include--
- Quality of Product or Service - Assess the contractor's conformance to contract requirements, specifications, and standards of good workmanship (e.g., commonly accepted technical, professional, environmental, or safety and health standards);
- Schedule - Assess the timeliness of the contractor in completing the contract, task orders, milestones, delivery schedules, administrative requirements (e.g., efforts that contribute to or effect the schedule variance);
- Cost Control - (Not required for Firm Fixed Price or Firm Fixed Price with Economic Price Adjustment) - Assess the contractor's effectiveness in forecasting, managing, and controlling contract cost;
- Business Relations - Assess the integration and coordination of all activities needed to execute the contract, specifically the timeliness, completeness and quality of problem identification, corrective action plans, proposal submittals, the contractor's history of reasonable and cooperative behavior, customer satisfaction, timely award and management of subcontracts, and whether the contractor met small/small disadvantaged and women-owned business participation goals; and
- Management of Key Personnel (For Services and Information Technology Business Sectors Only) - Assess the contractor's performance in selecting, retaining, supporting, and replacing, when necessary, key personnel.
Price
The Competition in Contracting Act, as implemented in the FAR, requires that cost or price be included as an evaluation factor in every source selection. The Source Selection Plan and solicitation must both reflect the relative importance of the evaluation factors. The FAR requires that the solicitation state, as a minimum, whether all evaluation factors other than cost or price, when combined, are -
- Significantly more important than cost or price;
- Approximately equal to cost or price; or
- Significantly less important than cost or price.
Rating scales are not appropriate for cost and price evaluations. Use a risk factor associated with the contractor's ability to perform at the proposed cost or price.