Tiered evaluation of small business offers
Agencies cannot use tiered (cascading) evaluations for small business offers on multiple-award contracts unless specifically authorized by statute.
Overview
FAR 15.101-3 prohibits agencies from using a tiered or "cascading" evaluation process for small business offers on multiple-award contracts unless there is specific statutory authority to do so. A tiered evaluation, as referenced in 13 CFR 125.2, involves evaluating offers in successive tiers (e.g., first considering small businesses, then moving to other categories if no suitable offers are received). This regulation ensures that agencies do not implement such evaluation structures for multiple-award contracts unless explicitly permitted by law.
Key Rules
- Prohibition on Tiered Evaluation
- Agencies cannot use a tiered or cascading evaluation process for small business offers on multiple-award contracts without statutory authority.
- Reference to 13 CFR 125.2
- The definition and process of tiered evaluation are as described in 13 CFR 125.2, which should be consulted for further detail.
Responsibilities
- Contracting Officers: Must ensure that tiered evaluation procedures are not used for multiple-award contracts unless there is clear statutory authority.
- Contractors: Should be aware that agencies generally cannot use tiered evaluations for small business offers on multiple-award contracts unless allowed by law.
- Agencies: Must verify statutory authority before implementing tiered evaluation procedures.
Practical Implications
- This rule exists to prevent agencies from circumventing small business preferences or requirements without proper legal basis.
- It impacts how agencies structure their evaluation of offers, particularly for multiple-award contracts.
- Common pitfalls include mistakenly applying tiered evaluation without statutory authority, which could result in protests or contract award challenges.