Q. Please advise if FTA provides any guidelines or description of justifiable reasons for contract awards to a #2 ranked proposer.
Our agency recently issued an RFP for PM services. Three firms submitted proposals. One firm shortly withdrew their bid. We evaluated and ranked two remaining proposals. We negotiated with both remaining proposers and requested BAFOs from both. The number 1 ranked firm offered a projected budget that by far exceeds our estimates (we can not afford this proposed budget.) Also they allocated substantial number of hours that we believe are excessive. The #2 ranked firm offered the budget that we can work with, and they allocated hours that we believe are reasonable for the project. The #1 ranked firm is not willing to reduce budget without substantially reducing scope. Can we proceed with award to #2 ranked firm? Both firms have equal experience, but differ in their approach and distribution of hours.
A. It important that you evaluate proposals in accordance with the evaluation criteria in the RFP. We presume that evaluated price was identified as a factor in the award, and the RFP did not promise award to the highest ranked proposer. The FTA Circular 4220.1E allows for a "best value" selection decision, which would seem to fit your circumstances very well. This approach is discussed in the BPPM Section 4.5.2 - Evaluation of Proposals. If this approach is used, however, the Circular requires you to advise offerors in the RFP that you will use this approach - Para. 9.d(5). FTA does not require you to award to the highest ranked firm. FTA does require that price be evaluated as a factor in the award, and that you make a determination that the price is fair and reasonable prior to award. If the highest ranked offeror's price is reasonable based on the technical approach being proposed (not your budget), and if what is being proposed is in turn the best technical proposal to meet the SOW requirements (though also most expensive), then you may have to issue an amendment to the RFP clarifying the requirements of the SOW so that more economical price proposals may be offered. In conclusion, it is difficult to advise you of the best course with any confidence not knowing the particulars of the RFP evaluation criteria, the SOW and the two technical proposals.
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Q. Does FTA have any guidance related to the proper composition of proposal evaluation teams and whether it is appropriate for Board members, the General Manager or the agency General Counsel to participate in the proposal evaluation process? A Board member has requested to be on a Proposal Evaluation Team, and procurement staff does not believe that it is appropriate as bid protests are ultimately decided by the Board.
A. FTA guidance on the evaluation of proposals may be found in the Best Practices Procurement Manual (BPPM) section 4.5.2 – Evaluation of Proposals. However, that section does not address the issue of evaluation committee membership. There is also some guidance on the selection of A-E contractors in section 6.5 – Architect-Engineer Services, including a paragraph on the membership of the evaluation committee.
We would agree with you that individuals who may be called upon to adjudicate a protest should not be involved in the evaluation process as this might make it difficult for them to objectively evaluate the protest. A protestor would certainly believe that it was not being dealt with objectively if an agency board member were acting in the capacity of both “defendant” (proposal evaluator) and “judge” (protest official).
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