Chapter 2 AN OVERVIEW OF SOURCE SELECTION
As the term implies, source selection denotes the processes by which the government selects a contractor (a source) to furnish goods or services.
SOLE SOURCE VS. COMPETITION
Government acquisition personnel award contracts in one of two ways:
1. They prepare the appropriate justifications, get the required approvals, and award a contract on a noncompetitive basis.
2. They award a contract on the basis of competition.
COMPETITIVE SOURCE SELECTIONS
When award is made on the basis of competition (either full and open competition or limited competition), contractors are normally selected using any one of three selection processes:
1. Award to the responsible, responsive offeror or bidder with the lowest price when only a price has been requested without any other written or oral proposals.
2. Award to the lowest offer among those responsible offerors that, in addition to a price, have submitted a written and/or oral proposal that has been found to be acceptable. This is called the lowest price, technically acceptable or LPTA process.
3. 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 that were identified in the government solicitation and addressed in the contractor’s proposal. This is called the trade-off process.
BEST VALUE
Traditionally, the trade-off process was considered to be the only “best value” process. However, the FAR, the acquisition bible of the executive agencies, now defines best value as an outcome (rather than a process) that may be achieved by either LPTA or trade-off or some combination of these two processes.
Manager Alert
To avoid possible misunderstanding, the manager is cautioned that, notwithstanding the current FAR definition, many people in the acquisition community still use best value as a synonym for trade-off when they communicate with others within and outside the acquisition community. You will also find that best value is used as a synonym for trade-off 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. This is a longstanding habit that has been hard to break.
FAR SOURCE SELECTION COVERAGE
The coverage of source selection in FAR Part 15 deals only with LPTA or trade-off. It is these source selection processes that will be addressed in this book.
PROCESS EVENTS
Exhibit 2-1 is an overview of the activities that take place during the source selection processes. Figures 2-2 and 2-3 are graphic representations of the processes from identification of the government requirement to the point when the source is selected. These representations may include terms and actions not yet familiar to the reader. If that is the case, the meanings will become clear as the reader proceeds through subsequent chapters.
FIGURE 2-1
Flow Chart for Award Without Discussions
FIGURE 2-2
Flow Chart for Award After Discussions
EXHIBIT 2-1
Normal Sequence of Events in Source Selection
When award is to be made without holding discussions with competing contractors
1. Identification of the requirement.
2. Planning begins; assignment of responsibilities.
3. Market research begins.
4. Preparation of the acquisition plan (AP) and the source selection plan (SSP).
5. Issuance of draft request for proposals (RFP), if any, and other presolicitation exchanges with contractors.
6. Issuance of 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 sometimes occurs while Step 7 is being accomplished.
7. Preparation of the solicitation. An RFP is used for most source selections other than simplified acquisitions. Simplified acquisitions often are accomplished using a request for quotations.
8. Issuance of the solicitation.
9. Preproposal conference and/or site visit, if any.
10. Receipt of proposals.
11. Evaluation of proposals.
12. Obtaining clarifications from offerors, where appropriate.
13. Selecting the source, documenting the rationale, making the award.
14. Competitors notified; debriefings offered.
15. Debriefings held.
When discussions are to be held with competing contractors
1. Identification of the requirement.
2. Planning begins; assignment of responsibilities.
3. Market research begins.*
4. Preparation of the AP and the SSP.
5. Issuance of draft RFP, if any, and other presolicitation exchanges with contractors.**
6. Issuance of a synopsis of the requirement at www.fedbizopps.gov, the GPE. This notifies the public that a solicitation is to be issued and often occurs while Step 7 is being accomplished.
7. Preparation of the solicitation. An RFP is used for most source selections other than simplified acquisitions. Simplified acquisitions often are accomplished using a request for quotations.
8. Issuance of the solicitation.
9. Preproposal conference or site visit, if any.
10. Receipt of proposals.
11. Evaluation of proposals.
12. Holding of communications, where appropriate.
13. Competitive range established.
14. Those not placed in range notified. Debriefings offered.
15. Debriefings held at time determined by contracting officer (may be delayed until after award at request of competing contractor or determination of the contracting officer).
16. Holding of discussions with those in the competitive range.
17. Interim proposal revisions if permitted or required.
18. Final proposal revisions requested and received.
19. Reevaluation of proposals.
20. Selecting the source, documenting the rationale, making the award.***
21. Competing contractors notified of award and offered debriefing.
22. Debriefings held.