Source Selection & Best Value (FAR Part 15)

The best-value continuum is the range of source selection approaches an agency may use in negotiated acquisitions. An agency can obtain best value by using any one or a combination of these approaches, from lowest-price-technically-acceptable at one end to a full tradeoff process at the other.

The tradeoff process is appropriate when it may be in the Government’s best interest to consider award to other than the lowest-priced offeror. It permits tradeoffs among cost or price and non-cost factors and allows the Government to accept other than the lowest-priced proposal.

LPTA is appropriate when best value is expected from the technically acceptable proposal with the lowest evaluated price. Unlike the tradeoff process, tradeoffs are not permitted under LPTA — proposals are evaluated for acceptability but not ranked using the non-cost/price factors, and award goes to the lowest-priced acceptable offer.

Yes. Price or cost to the Government shall be evaluated in every source selection.

Yes. Quality of the product or service shall be addressed in every source selection through consideration of one or more non-cost evaluation factors, such as past performance, compliance with requirements, technical excellence, management capability, or personnel qualifications.

Yes. Past performance shall be evaluated in all source selections for negotiated competitive acquisitions, except in limited circumstances set out in the FAR.

Based on the evaluation of each proposal against all evaluation criteria, the contracting officer establishes a competitive range comprised of all of the most highly rated proposals, unless the range is further reduced for purposes of efficiency.

When discussions are conducted, they are held after establishment of the competitive range and are conducted by the contracting officer with each offeror within the competitive range. The primary objective is to maximize the Government’s ability to obtain best value.