Answer_to_Question_dtd_17_Apr_13.pdf

17 Apr 13

Government Responses to Additional Industry Question on the MPF RFP FA4890-12-R-0019 as of 17 Apr 13

#1. GENERAL INFORMATION. 1.1. This competitive best value source selection will be conducted in accordance with FAR Part 15, Contracting by Negotiation, DoD Source Selection Procedures effective 1 Jul 2011 and Air Force Federal Acquisition Regulation (AFFARS) Mandatory Procedures (MP) 5315.3 for Source Selection as revised 4 May 2011 using the Lowest Price Technically Acceptable (LPTA) source selection process. In accordance with FAR 52.212-1, the Government reserves the right to award without discussions, but may conduct discussions if the Government determines it is necessary.

Although the solicitation is for a PWS LPTA procurement, Section 3.3.1.2. states the that …”the Government reserves the right to, but is not required to conduct analysis on offers that appear to be exceptionally low and not supported by the offeror’s technical approach.” This appears to be inconsistent with DOD Source Selection Procedures referenced in Section 7. Specifically, what means will the government use to determine a bid to be “exceptionally low” ? The DOD Source Selection Procedures referenced in Section 7, states in Section A.5. Price that “The LPTA procedure is applied to known, firm requirements, usually readily available in the commercial marketplace where a fair and reasonable price determination is based on adequate price competition. Therefore, price analysis will normally be used to determine the total evaluated price to support the selection of the lowest priced, technically acceptable offeror. Although in exceptional cases when the determination of fair and reasonable price requires additional information, the PCO may conduct a cost analysis to support the determination of whether the proposed price is fair and reasonable. Regardless of the specific evaluation methodology, in order to enable offerors to make informed decisions on how best to propose, every solicitation will provide an adequate description of the cost or price evaluation.”

Consequently, what specific cost analysis /evaluation methodology will be used to determine if an exceptionally low offer should be rejected? With the past cost history associated with this procurement, will a government estimate be used as one of the elements of cost analysis to ensure that the technical approach is appropriate, a fair and reasonable price and the avoidance of an acceptance of a unconscionable low bid and contract?

Government Response: The RFP has been amended (FA4890-12-R-0019-0003) to remove the following language from Section 7, Addendum to 52.212-2 para. 3.3.1.2:

As an LPTA source selection, the Government reserves the right to, but is not required to conduct analysis on offers that appear to be exceptionally low and not supported by the offeror's technical approach.

The specific analysis techniques/evaluation methodology used to determine if an exceptionally low offer should be rejected are outlined in FAR 15.404-1 as stated in paragraph Section 7, para. 3.3.1.1.