What Is an Evaluation Notice in Government Contracting

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(1) Evaluation of costs or prices. Normally, competition establishes price proportionality. Therefore, for a contract based on a fixed price or a fixed price with an economic price adjustment basis, the comparison of the proposed prices generally satisfies the obligation to carry out a price analysis and there is no need for a cost analysis. In limited situations, a cost analysis may be appropriate to determine the appropriateness of the supplier`s otherwise advantageous price (see 15.403-1(c)(1)(i)(C)). When awarding contracts on a reimbursement basis, evaluations include a cost-effective analysis to determine what the government should realistically have to pay for the proposed effort, the supplier`s understanding of the work, and the supplier`s ability to perform the contract. Realistic cost analyses may also be used for fixed-price incentive contracts or, in exceptional cases, for other competitive fixed-price contracts (see 15.404-1(d)(3)). (See 37.115 for the assessment of unpaid overtime.) The customer documents the cost or price assessment. 3. Subject to subparagraphs (d)(5) and (e) of this Section and Article 15.307(a), subject to subparagraphs (d)(5) and (e) of this Section and Article 15.307(a) for each tenderer still under consideration for the award, the contracting authority shall be required to present irregularities, significant weaknesses and information on adverse performance in the past which the tenderer has not yet been able to respond; or chat with them. The procuring entity is also encouraged to discuss other aspects of the tenderer`s tender which, in the opinion of the procuring entity, could be modified or explained in order to significantly improve the procurement potential of the proposal. However, the procuring entity is not required to discuss all areas where the proposal could be improved.

The scope and scope of consultations is a matter of client judgment. In the case of a negotiated contract where the invitation does not provide for an award on the basis of the most cost-effective and technically acceptable tender, it is at the discretion of an agency to award a contract to a supplier with a higher technical rating and price if it reasonably determines that the mark-up is justified and that the result complies with the evaluation criteria. Systems Integration & Dev., Inc., B – 271050, 96 – 1 CPD ¶ 273 (Comp. General 7 June 1996). The compromise decision, which results in an award to a supplier with a technically higher rated and more costly proposal, does not require the Agency to provide the Agency with an accurate quantification of the dollar value of the technical superiority of the proposal. Kay and Assocs., Inc., B – 258243.7, 96 – 1 CPD ¶ 266 (Comp. General 7 September 1995). (3) Discloses a supplier`s price without their consent.

However, the customer may inform a supplier that its price is considered too high or too low by the government and disclose the results of the analysis that supports this conclusion. It is also permitted, at the discretion of the government, to disclose the cost or price to all suppliers that have been found to be reasonable through price analysis, market research, and other government reviews (41 U.S.C.2102 and 2107); 3. Where, after complying with point (d)(3) of this Section, the procuring entity decides that a supplier`s proposal should no longer be included in the margin of competition, the proposal shall be excluded from the consideration for the award of the contract. Rejected suppliers must be informed of this decision in writing in accordance with Article 15 503. The evaluation of a proposal in a negotiated procurement is inherently subjective and provides procuring entities and officials with a great deal of flexibility in choosing sources. It is this flexibility, often referred to as „discretion,“ that allows customers to choose from suppliers to ensure that a prize is not awarded to a supplier who does not offer the right level of comfort. While the system is designed to allow the government to select the „best value,“ there is a very real danger that the system could be manipulated to facilitate favoritism. If a tenderer considers that the evaluation system as defined in the call for tenders is unfair, an objection must be lodged before the date of receipt of the tenders.

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