CHAPTER 2 THE SOURCE SELECTION PROCESSES
Source selection is the term used to describe the processes through which the government selects a contractor—a source—to furnish goods or services.
Many acquisition officials consider the selection of a contractor to be the most crucial of all the elements in the acquisition cycle. After all, they point out, it is usually far less difficult and far less expensive to change the terms of a contract than it is to terminate a contractor for default and go through the tedious and expensive process of reprocurement. If an agency selects the wrong contractor, even the most carefully crafted contract will not compensate for the poor source selection.
Government acquisition personnel select contractors in one of two ways:
• They prepare the appropriate justifications, get required approvals, and award a contract on a noncompetitive basis.
• They award a contract on the basis of competition.
When award is made on the basis of competition (either full and open competition or limited competition), contractors are normally selected using one of three selection processes:
• Award to the responsible, responsive offeror or bidder with the lowest price when only a price has been requested and there are no accompanying written or oral proposals.
• Award to the lowest offer among those responsible offerors that, in addition to a price, have submitted a written or oral proposal (or both) that has been found to be acceptable. This method is called lowest-price technically acceptable (LPTA).
• Award to the responsible contractor offering the best value to the government (which may or may not be the lowest price), considering both price/cost factors and those non-price factors identified in the government solicitation and addressed in the contractor’s proposal. This is called the tradeoff process.
The tradeoff process was traditionally considered to be the only best value process. However, in 1997 the language defining best value in the Federal Acquisition Regulation (FAR), the acquisition bible of the executive agencies, was changed. Best value is now defined as an outcome (rather than a process) that may be achieved through LPTA, tradeoff, or some combination of these two processes.
Notwithstanding this change in the FAR, many people in the acquisition community still use best value as a synonym for tradeoff in their communications with people both within and outside the acquisition community. Best value is also frequently used as a synonym for tradeoff in articles published in professional magazines and even in some of the protest opinions issued by the Comptroller General or the Court of Federal Claims. It is a longstanding habit that has been hard to break.
The part of the FAR dealing with source selection is FAR Part 15, Contracting by Negotiation. The source selection processes and procedures described in Part 15 deal only with LPTA or tradeoff. Accordingly, we focus on those two processes in this book.
Exhibit 2-1 is an overview of the activities that take place during the source selection process. Exhibits 2-2 and 2-3 are graphic representations of the process, starting with identifying the government requirement and ending at selecting the source. These exhibits may include terms and actions not yet familiar to the reader. If that is the case, it is suggested that the reader examine the exhibits now just to get an overall feel for this complex process. The reader can then refer back to these exhibits, where appropriate, as he or she proceeds through the text. For the benefit of the reader, these exhibits will appear again in Chapter 38.
EXHIBIT 2-1 The Normal Sequence of Events in Source Selection
When award is to be made without holding discussions
1. Identify the requirement.
2. Planning begins; assign responsibilities.
3. Market research begins.
4. Prepare the acquisition plan (AP) and the source selection plan (SSP).
5. Issue the draft request for proposal (RFP), if any, and conduct other presolicitation exchanges.
6. Issue a synopsis of the requirement at www.fedbizopps.gov, the governmentwide point of entry (GPE). This notifies the public that a solicitation is to be issued and often occurs at the same time as activity 7, preparation of the solicitation.
7. Prepare the solicitation. A request for proposal is used for most source selections other than simplified acquisitions. Simplified acquisitions often are accomplished using a request for quotation (RFQ).
8. Issue the solicitation.
9. Conduct the preproposal conference or site visit, if any.
10. Receive proposals.
11. Evaluate proposals.
12. Obtain clarifications, where appropriate.
13. Select the source, document the rationale, and make the award.
14. Notify competitors, and offer debriefings.
15. Hold debriefings.
When discussions are to be held
1. Identify the requirement.
2. Planning begins; assign responsibilities.
3. Market research begins.
4. Prepare the acquisition plan and the source selection plan.
5. Issue the draft RFP, if any, and conduct other presolicitation exchanges.
6. Issue a synopsis of the requirement at www.fedbizopps.gov, the governmentwide point of entry (GPE). This notifies the public that a solicitation is to be issued and often occurs at the same time as activity 7, preparation of the solicitation.
7. Prepare the solicitation. A request for proposal is used for most source selections other than simplified acquisitions. Simplified acquisitions often are accomplished using a request for quotation.
8. Issue the solicitation.
9. Conduct the preproposal conference or site visit, if any.
10. Receive proposals.
11. Evaluate proposals.
12. Conduct communications, where appropriate.
13. Establish the competitive range.
14. Notify those not placed in range; offer debriefings.
15. Hold debriefings at a time determined by the contracting officer. They may be delayed until after award at the request of a competing contractor or if the contracting officer chooses to do so.
16. Hold discussions with those in the competitive range.
17. Receive interim proposal revisions, if permitted or required.
18. Request and receive final proposal revisions.
19. Reevaluate proposals.
20. Select the source, document the rationale, and make the award.
21. Notify competing contractors of the award, and offer debriefings.
22. Hold debriefings.
EXHIBIT 2-2 Flow Chart for Award without Discussions
EXHIBIT 2-3 Flow Chart for Award after Discussions
