FAP Part 15 Flashcards
Contracting by Negotiation
Part 15
Contracting by Negotiation
Part 15 - Contracting by Negotiation
15.1 - Source Selection Processes and Techniques
Scope and Best Value Continuum (FAR 15.100 & 15.101)
Acquisition strategies must be competitive and suitable for specific circumstances (FAR 15.100).
Best value obtained through various source selection approaches; the importance of cost or price varies by acquisition type (FAR 15.101).
Tradeoff Process (FAR 15.101-1)
Appropriate when benefits of a higher priced proposal outweigh cost considerations.
Evaluation factors must be clearly stated; tradeoffs between cost/price and non-cost factors allowed; rationale for decisions must be documented (FAR 15.101-1(a)-(c)).
Lowest Price Technically Acceptable (LPTA) Process (FAR 15.101-2)
Suitable for acquisitions where minimum technical requirements are clear and no value from exceeding
these requirements is expected.
No tradeoffs allowed; award based on lowest evaluated price meeting technical standards (FAR 15.101- 2(a)-(c)).
Tiered Evaluation of Small Business Offers (FAR 15.101-3)
Tiered evaluations prohibited unless there is statutory authority to ensure fair opportunities for small businesses (FAR 15.101-3).
Oral Presentations (FAR 15.102)
Can replace or supplement written proposals to streamline source selections.
Solicitations must clearly outline oral presentation requirements; recordings or notes of presentations must
be documented (FAR 15.102(a)-(g)).
General Requirements and Documentation
Oral presentations may discuss offeror’s capabilities, past performance, work plans, etc.
Adequate evaluation by government required, with any information obtained potentially incorporated into the contract (FAR 15.102(c)).
Part 15 - Contracting by Negotiation
15.2 - Solicitation and Receipt of Proposals and Information
Scope of Subpart (FAR 15.200)
Prescribes policies and procedures for exchanging information with industry, preparing and issuing RFPs and RFIs, and receiving proposals and information.
Exchanges with Industry (FAR 15.201)
Encourages exchanges of information from the earliest identification of a requirement through receipt of proposals (FAR 15.201(a)).
Purpose is to improve understanding of government requirements and industry capabilities to enhance quality and efficiency in procurement (FAR 15.201(b)).
Techniques include industry conferences, market research, and presolicitation notices (FAR 15.201(c)).
Advisory Multi-Step Process (FAR 15.202)
Agencies may use a presolicitation notice inviting potential offerors to submit information, helping the government advise on their viability as competitors (FAR 15.202(a)).
All responses are evaluated, and each respondent is advised on their potential to compete in the resultant acquisition (FAR 15.202(b)).
Requests for Proposals (RFPs) (FAR 15.203)
Used to communicate government requirements and solicit proposals; includes government’s requirement, anticipated terms, and evaluation factors (FAR 15.203(a)).
RFPs may be issued electronically or via facsimile, considering factors like proposal size and urgency (FAR 15.203(c-d)).
Uniform Contract Format (FAR 15.204)
Facilitates preparation and use of solicitation and contract documents; not required for certain contracts like construction (FAR 15.204).
Parts I to IV detail solicitation/contract form, contract clauses, documents, and instructions for offerors (FAR 15.204-1).
Evaluation Factors and Significant Subfactors (FAR 15.304)
Evaluation must be based on factors and subfactors tailored to the acquisition, emphasizing
price or cost and quality of the product or service (FAR 15.304(a-c)).
Factors must support meaningful comparison and discrimination among proposals, and all significant factors affecting the award decision must be clearly stated in the solicitation (FAR 15.304(d)).
Proposal Evaluation (FAR 15.305)
Proposals are assessed based on their ability to meet the Government’s requirements,
considering cost or price, technical merit, and past performance (FAR 15.305(a)).
Evaluations may use various methods such as color or adjectival ratings, and numerical weights, and the evaluation process should document relative strengths, deficiencies, and risks (FAR 15.305(a)).
Part 15 - Contracting by Negotiation Introduction to FAR Subpart 15.4
- Contract Pricing
Scope of Subpart (FAR 15.400)
“This subpart prescribes the cost and price negotiation policies and procedures for pricing negotiated prime contracts (including subcontracts) and contract modifications, including modifications to contracts awarded by sealed bidding.”
Part 15 - Contracting by Negotiation Introduction to FAR Subpart 15.4
- Contract Pricing
Definitions (FAR 15.401)
Price: “Cost plus any fee or profit applicable to the contract type.”
Part 15 - Contracting by Negotiation
Overview of FAR Subpart 15.5 -
Preaward, Award, and Postaward Notifications, Protests, and Mistakes
Definitions
Day:
As defined in 33.101, typically refers to a calendar day, unless specified otherwise.
Part 15 - Contracting by Negotiation
Overview of FAR Subpart 15.5 -
Preaward, Award, and Postaward Notifications, Protests, and Mistakes
Applicability
Applicable to competitive proposals and combinations of competitive procedures. The processes in this subpart are also suggested for sole source acquisitions.
Notifications to Unsuccessful Offerors (FAR 15.503)
Preaward Notices: Notifying offerors promptly when excluded from the competitive range or the
competition entirely, specifying the reasons.
Postaward Notices: Notifying unsuccessful offerors within 3 days post-award, providing details such as the number of proposals received, the awardee’s name, and general reasons for non- selection.
Award to Successful Offeror (FAR 15.504)
A contract is awarded by furnishing the executed contract or notice of award to the successful offeror. Any differences from the proposal must be highlighted and mutually signed.
Preaward Debriefing of Offerors (FAR 15.505)
Offerors excluded before award can request a debriefing to understand the reasons behind their exclusion. This debriefing can include agency evaluations and a summary of the decision-making rationale.
Postaward Debriefing of Offerors (FAR 15.506)
Unsuccessful offerors can request a debriefing within 3 days after notification of the award. The debriefing will cover the agency’s evaluation of the offeror’s proposal, the rationale for the award decision, and other pertinent comparative information.
Protests and Mistakes (FAR 15.507 & 15.508)
Protests: Procedures for handling protests against award decisions, including new solicitations or requests for revised
proposals triggered by protests.
Mistakes: Discovery of mistakes in proposals after award are handled similarly to mistakes in bids, allowing for potential administrative corrections.
Part 15 - Contracting by Negotiation Overview of FAR Subpart 15.6
Unsolicited Proposals
* Scope and Policy (FAR 15.600, 15.602)
This subpart addresses policies and procedures for unsolicited proposals—new and innovative ideas
developed outside the Government.
Encourages submissions that don’t fall under typical solicitations, emphasizing support for innovation and unique contributions to government missions.
Part 15 - Contracting by Negotiation Overview of FAR Subpart 15.6
Unsolicited Proposals
* Definitions (FAR 15.601)
Advertising Material: Introduces a prospective contractor’s capabilities.
Commercial Product or Service Offer: Offers intended for the government’s supply system as alternatives or replacements.
Contribution: Ideas or concepts offered without expectation of further involvement.
General Criteria for Unsolicited Proposals (FAR 15.603)
Proposals must be innovative, independently originated and developed, and prepared without government
direction.
Must show potential to significantly benefit the agency’s mission.
Agency Points of Contact and Proposal Content (FAR 15.604, 15.605)
Points of contact and preferred submission methods are provided to assist potential offerors.
Proposals should include basic information (e.g., offeror’s details, proprietary data marking), technical details (e.g., project objectives and methods), and supporting information (e.g., cost, project duration).
Evaluation and Acceptance Criteria (FAR 15.606, 15.607)
Proposals undergo comprehensive evaluation to assess innovation, relevance to the agency’s mission, and
cost realism.
Favorable evaluations alone do not justify a contract; conditions include uniqueness, lack of competitive alternatives, and compliance with acquisition regulations.
Best value
The expected outcome of an acquisition that, in the government’s estimation, provides the greatest overall benefit in response to the requirement
Lowest price
technically acceptable
Best Value Continuum
Tradeoff analysis
Best Value Continuum
An agency can obtain best value in negotiated acquisitions by
using any one or a combination of source selection approaches.
In different types of acquisitions, the relative importance of cost or price may vary. The agency may consider:
Requirements
Risk
Past performance
Cost
Tradeoff Process
Appropriate when it may be in the best interest of the government to consider award to other than the lowest priced offeror or other than the highest technically rated offeror.
Permits tradeoffs among cost or price and non-cost factors
Permits the government to make an award to other than the lowest priced proposal
Lowest Price Technically Acceptable
Appropriate when best value is expected to result from selection of the technically acceptable proposal with
the lowest
evaluated price.
Tradeoffs are not permitted
Award is made on the basis of lowest evaluated price of proposals meeting or exceeding the acceptability standards for noncost factors.
Oral Presentations
May substitute for or augment written information
Provide opportunity to streamline the acquisition process
May occur at any time in the acquisition process
Subject to the same restrictions as
written information, regarding time and content
Oral Presentations
provide an opportunity for dialogue among the parties.
Pre-recorded presentations are not considered oral presentations, although they may be included by offerors.
When an oral presentation includes material terms and conditions, the information shall be put in writing.
Incorporation by reference of oral statement is not permitted.
Exchanges of information among all interested parties are encouraged in order to:
Improve the understanding of government requirements and
industry capabilities
Allow potential offerors to judge whether or how they can
satisfy the government’s requirements
Enhance the government’s ability to obtain quality supplies
and services, at reasonable prices
Increase efficiency in proposal preparation, proposal evaluation, negotiation, and contract award
Techniques to promote early exchanges of information include:
Industry or small business conferences
Public hearings
Market research
One-on-one meetings with potential offerors
Presolicitation notices or conferences
Draft requests for proposals (RFPs)
Requests for information (RFls)
Request for Proposals (RFP)
Used to communicate government requirements and solicit proposals
Must describe the government’s requirement, anticipated terms and conditions, information required to be in the proposal, and evaluation factors and their importance
Request for Information (RFI)
Used when the government does not intend to award a contract, but wants to
obtain price, delivery, or market information, or capabilities, for planning
Responses are not offers
Uniform Contract Format
Unless specifically excluded elsewhere in the FAR, solicitations and resulting contracts are to be formatted in accordance with the uniform contract format outlined in Table
15-1.
Uniform Contract Format
Part I: The Schedule
A
Solicitation/contract form
Title
B
Supplies or services and prices/costs
C Description/specifications/statement of work
D
Packaging and marking
E
Inspection and acceptance
F
Deliveries or performance
G
Contract administration data
H
Special contract requirements
Uniform Contract Format
Part II: Contract Clauses
I
Contract Clauses
Uniform Contract Format
Part III: List of Documents, Exhibits, and Other Attachments
J
List of attachments
Uniform Contract Format
Part IV: Representation and Instructions
K
Representations, certifications, and other statements of offerors or respondents
L
Instructions, conditions, and notices to offerors or respondents
M
Evaluation factors for award
Uniform Contract Format
Part I: The Schedule
Section A
Title Solicitation/contract form
Issuing agency’s name and address
Solicitation number
Date of issuance
Closing date and time
Number of pages
Purchase authority
Brief description of item
or service
Requirement for offeror to provide information
Offer expiration date
Uniform Contract Format
Part I: The Schedule
Section B
Title Supplies or services and prices/costs
Includes a brief description of the supplies or services: * Item number
* National stock number/part number fi applicable * Nouns
* Nomenclature
* Quantities
This includes incidental deliverables such as
manuals and reports
Uniform Contract Format
Part I: The Schedule
Section A
Title Solicitation/contract form
Section B
Title Supplies or services and prices/costs
Section C
Title Description/specifications/statement of work
Section D
Title Packaging and marking
Section E
Title Inspection and acceptance
Requirements are described in FAR Part 46, Quality Assurance
Uniform Contract Format
Part I: The Schedule
Section A
Title Solicitation/contract form
Section B
Title Supplies or services and prices/costs
Section C
Title Description/specifications/statement of work
Section D
Title Packaging and marking
Section E
Title Inspection and acceptance
Section F
Title Deliveries or performance
Requirements are described in FAR 11.4, Delivery or Performance Schedules
Uniform Contract Format
Part I: The Schedule
Section A
Title Solicitation/contract form
Section B
Title Supplies or services and prices/costs
Section C
Title Description/specifications/statement of work
Section D
Title Packaging and marking
Section E
Title Inspection and acceptance
Section F
Title Deliveries or performance
Section G
Title Contract administration data
Section H
Title Special contract requirements
Uniform Contract Format
Parts Il and Il
Section I
Title Contract clauses
Part III: List of documents, exhibits, and other attachments
Section J
Title Contract clauses
Uniform Contract Format
Parts IV: Representation and Instructions
Section K
Title Evaluation factors for award
Upon award, contracting officers shall not physically include Part IV in the resulting contract, but shall retain it in the contract file.
Uniform Contract Format
Parts IV: Representation and Instructions
Section K
Title Representations, certifications, and other statements of offerors or respondents
Section L
Title Instructions, conditions, and notices to offerors or respondents
Includes solicitation provisions and other information and instructions not required elsewhere for preparing responses to RFPs or RFIs
May contain specific format instructions for proposals or information
May specify further organization of parts, such as:
* Administrative
* Management * Technical
* Past performance
* Certified cost or pricing data or data other than cost or pricing data
Submission, Modification, and Revision of Proposals
The solicitation is to be amended when (either before or after receipt of
proposals) the government changes its requirements or terms and conditions.
Proposals and modifications received after the exact time specified are
“late” and shall be considered only fi they
are received before award is
made.
If no time is specified in the solicitation, the time for receipt is 4:30 p.m., local time, for the designated government office on the date that proposals are due.
Withdrawal of Proposals
Oral proposals
May be withdrawn by oral notice.
The contract files is updated
to say that the proposal was withdrawn.
Withdrawal of Proposals
Written proposals
Must be withdrawn by written notice.
If electronic, the file is deleted.
Otherwise, the proposal is returned
Source selection
The process wherein the requirements, facts, recommendations, and policies relevant to an award decision in a competitive procurement of a system/project are
examined and the decision made
The objective of source selection is to select the proposal that represents the best value.
The basis for award decision is tailored to each specific acquisition and is based on the evaluation of factors and significant subfactors.
Source Selection Responsibilities
Source selection authority (SSA)
The person who makes the final source selection in a competition
Responsible for ensuring that the entire source selection process is properly and efficiently conducted
While the SSA may use reports and analyses prepared by
others, the source selection decision must represent the SSA’s independent judgment.
The contracting officer is designated as the source selection authority, unless the agency head appoints another individual.
The SSA establishes an evaluation team.
The SSA approves the source selection strategy and, if applicable, the acquisition plan.
The SSA ensures that the requirements are consistent.
The SSA ensures that only the evaluation factors in the solicitation are used for evaluating proposals.
The CO is responsible for answering questions from prospective contractors about the solicitation.