15.101-1
Tradeoff process
The tradeoff process allows the Government to award contracts based on best value, not just lowest price, but requires clear solicitation criteria and thorough documentation of tradeoff decisions.
Overview
FAR 15.101-1 outlines the tradeoff process used in negotiated procurements when the Government may consider awarding a contract to an offeror other than the lowest-priced or highest technically rated. This process allows for a balanced evaluation of both price and non-price factors, enabling the Government to select a proposal that offers the best value, even if it is not the lowest cost. The regulation requires clear communication of evaluation criteria and their relative importance in the solicitation, and mandates documentation of the rationale for any tradeoffs made during the source selection process.
Key Rules
- Use of Tradeoff Process
- The tradeoff process is appropriate when the Government may benefit from considering factors beyond just price or technical merit.
- Solicitation Requirements
- All evaluation factors and significant subfactors, along with their relative importance, must be clearly stated in the solicitation.
- The solicitation must specify whether non-cost factors are more, less, or equally important compared to cost or price.
- Documentation of Tradeoffs
- Any decision to accept a higher-priced proposal must be justified by the perceived benefits and documented in accordance with FAR 15.406.
Responsibilities
- Contracting Officers: Must ensure solicitations clearly state evaluation factors and their importance, and document tradeoff decisions.
- Contractors: Should carefully review solicitation criteria and tailor proposals to address both price and non-price factors.
- Agencies: Must maintain proper documentation supporting tradeoff decisions for audit and oversight purposes.
Practical Implications
- This section enables flexibility in source selection, allowing the Government to obtain best value rather than just lowest price.
- Contractors must pay close attention to evaluation criteria and their weighting to maximize competitiveness.
- Failure to clearly document tradeoff decisions can result in protests or audit findings.