Evaluation for award
R&D contract awards must prioritize the best ideas and competence, with careful evaluation of cost, responsibility, and clear communication to all offerors.
Overview
FAR 35.008 outlines the evaluation process for awarding research and development (R&D) contracts. The section emphasizes that awards should go to organizations with the best ideas and highest competence relevant to the scientific or technical field, but not for capabilities beyond what is necessary. Because R&D contracts often lack precise specifications, contracting officers must carefully review and align evaluation factors with the solicitation. If a small business is otherwise selected but deemed not responsible, the SBA Certificate of Competency process must be used. The section also requires adherence to FAR 15.5 for notifying and debriefing offerors. Finally, cost or price estimates must be evaluated not just for reasonableness, but also as indicators of the offeror’s understanding, risk perception, and organizational ability, using cost or price analysis as appropriate.
Key Rules
- Best Ideas and Competence
- Award R&D contracts to organizations with the best ideas and highest competence, but avoid unnecessary capabilities.
- Evaluation Factors
- Ensure evaluation factors are clearly presented and consistent with the solicitation, especially given the lack of precise specs in R&D.
- Small Business Responsibility
- Use the SBA Certificate of Competency procedure if a small business is found not responsible.
- Notification and Debriefing
- Follow FAR 15.5 procedures for notifying and debriefing offerors.
- Cost/Price Evaluation
- Evaluate cost or price estimates for reasonableness and as a measure of the offeror’s understanding and capability, using cost/price analysis as needed.
Responsibilities
- Contracting Officers: Carefully review evaluation factors, use SBA procedures for small businesses, notify and debrief offerors per FAR 15.5, and conduct thorough cost/price evaluations.
- Contractors: Submit clear, realistic proposals and cost estimates that demonstrate understanding and capability.
- Agencies: Ensure oversight of fair evaluation and compliance with SBA and FAR notification/debriefing requirements.
Practical Implications
- This section ensures R&D contracts are awarded based on merit and capability, not just lowest price or unnecessary features.
- It highlights the importance of transparent evaluation criteria and fair treatment of small businesses.
- Common pitfalls include poorly defined evaluation factors, inadequate cost analysis, and failure to follow SBA or debriefing procedures.