AGENCIES INCREASE USE OF DOWNSELECTS IN ACQUISITIONS

When is your offer considered to be officially rejected?  That can be a tricky question for contractors when agencies use “advisory down selects” in an acquisition.  The approach, used most recently at DHS and NIH, starts with a multi-phased acquisition, usually beginning with a company’s technical proposal.  If it is evaluated as lacking or insufficient the company receives an advisory notice to that effect.  The notice, however, does not preclude the company from submitting an offer in phase two of the acquisition.  While it cannot officially augment its original proposal to correct any deficiencies identified in the first phase, it can make a bid on pricing and any other factors contained in the RFP.  Federal Acquisition Regulation (FAR) 15.202 contains the specific regulatory guidance for the use of this acquisition method.  Notably, only when an offer is rejected in the final phase is a bid protest in order.  Still, contractors receiving a negative evaluation in the first phase of an acquisition must seriously consider their chances for success before proceeding to the next phase.  If the technical evaluation was problematic, will they be able to offer pricing low enough to counter it?  Can a cover letter address the shortcomings and explain them easily?  There are multiple contract opportunities and contract vehicles that could be used to access the identified agency.  Companies also need to make the best use of their bid and proposal dollars.  A long shot may not be the best shot if alternatives are available.  The best bet for contractors is to be prepared before the RFP hits the streets so that the best possible initial offer can be made.  This means participation in any pre-RFP discussions and, where possible, engaging with agency officials to ensure that the company understands what is being sought.  As usual, the best defense is a good offense.