TO BESTIPRACTICES - Defense Technical Information Center

1 A O)I occumernt as ee pproved 0for public zeklec e and sale; its Ldistributionl is unlnmilr d. ioA GUIDETO BESTIPRACTICES_____10 27 004 EiFOREWORDThe Army Materiel Command (AMC) acquisition community has longrecognized the advantages associated with evaluating; and comparing other factors inaddition to cost or price in making major contract source selections. The use of this "bestvalue" approach to contracting is increasing for many types of buys, both small and largebecause it permits greater flexibility to use sound business judgment in weighing non-cost factors against cost in selecting the proposal that best meets the government's best value approach allows access to Information about a potential offeror that exceedsthe price alone.

2 This can provide abetter understanding of how an offeror intends tomeet delivery, quality, and performance requirements at the offered price and increasesthe likelihood of selecting quality suppliers. However, this approach can be complex,expensive and time-consuming and is therefore not suitable for all acquisitions. Auniform understanding of the best value concept is essential to ensure that the sourceselection approach fits the acquisition needs and will result in selection of 'he mostadvantageous guide is a result of suggestions made by members of the AMC acquisitioncommunity who participated in the Best Value Contracting Workshop.

3 It is intended fora multifunctional audience to promote understanding of how and when to use the bestvalue approach . It provides broad guidelines of best practices for a wide range of bestvalue source selections, using both formal and informal procedures. AMC contractingactivities are encouraged to develop and issue source selection procedures that include thebest value approach . The considerations outlined in this guide can serve as the basis fordevelopment of such extend my thanks to the major subordinate command representatives who reviewedthe draft document and made many valuable contributions to the drafting of this For 1 j I I (/NTIS CRA&I '"DTIC TAB EUnannotunced Leon E.)

4 SalomonJutiictin ..General, Arm yJustificationCommandingDist ibution Army Materiel CommandAvailability CodesAvail aridi orDist SpecialA CKNO WLEDGMENTSThe Army Material Command (AMC) is issuing thisguide to assist our acquisition community and our customers inunderstanding the best value contracting approach . It should beused in conjunction with existing AMC Project Manager was Shelley Scott. AMCgratefully acknowledges the invaluable assistance of the majorsubordinate command representatives who reviewed the draftdocuments, provided comments and recommendations, and sograciously shared their knowledge and experience in the area ofbest value contracting.

5 In addition, we want to recognize theassistance and special contributions of the following HQ AMCstaff members: Jim Gleason, Kathy Love, and Ludlow was a team effort and we acknowledge all those on theAMC team whose contributions to this guide will impact theunderstanding and application of best value encourage circulation of this guide to all acquisitionpersonnel considering the use of a best value approach and to anyothers who may copies of this publication are available from theDefense Techmical Information Center (DTIC). The guide maybe ordered by calling 1-800-225-3812 or 1-800-CAL-DTIC andpressing 5 for document welcome your comments regarding this guide.

6 Pleasesend your suggestions or questions to the Contract PolicyDivision (AMCAQ-K) whose address is shown at the back of 715-3, VOL 5 DEPARTMENT OF THE ARMYHEADQUARTERS, UNITED STATES ARMYMATERIEL COMMAND6001 EISENHOWER AVENUE, ALEXANDRIA, VA 22333-0001 AMC PAMPHILET 16 August 1994NO. 716-3 Voklum IPROCUREMENTTHE BEST VALUE APPROACHTO SELECTING A CONTRACT SOURCET able of ContentsIntroduction .. 1O verview .. 2W hat Is "Best Value?" .. 2 When to Use Best Value: Strengths and Potential Pitfalls .. 2 Major Steps in the Process .. 3 Importance of the Source Selection.

7 4 Importance of Procurement Integrity .. 4 The Plan for Selecting a Source .. 5 Purpose of the Source Selection Plan .. 5 Source Selection Plan't Minimum Requirements .. 6 Evaluation Factors and Subfactors .. 6 Relative Importance of Evaluation Factors and Subfactors .. 8 Evaluation Standards .. 9R ating System s .. 10 Solicitation Structure .. 11 Section C -Description, Specifications, Work Statement .. 12 Section L -Instructions, Conditions, and Notices to Offerors .. 13 Section M -Evaluat'an Factors for Award .. 14 Evaluation Considerations .. 15 Reasons for the Evaluation Process.

8 15 Evaluation Process Tasks .. 15 Best Value Decision .. 20iftMaking the Cost/ Technical Tradeoff Analysis .. 20 Documenting the Proposal Comparison ..21 Documenting the Selection Decision and Awarding the Contract .. 22 Notification and Debriefing of Unsuccessful Offerors .. 23D e b riefin g ..23 Lessons Learned .. 25 Top Ten Messages .. 26 Appendix A: Definitions .. 27 Appendix B: References .. 29 Appendix C: Tracking Sam ple .. 30ivIntroductionSource selection is the process used in best value approach can be an expensive andcompetitive, negotiated contracting to select sophisticated process that generally requiresthe proposal offering the most advantageous in-depth planning, as well as more to the Government.

9 The two documentation, and which can be used to select themost advantageous alteniative are the lowest More frequent use of the best value approachcost, acceptable proposal or best value. The and the resulting lessons learned havesource selection approach used should be established the need for this guide. The statedcomnensurate with the acquisition's evaluation principles apply to formal source selectionsneeds: don't make source selectirn more using a best value approach as well as to bestcomplicated and expensive than nu,,essary. value acquisitions which use other than formalsource selection many instances.

10 Using the lowest proposal approach will result inselection of the most advantageous this source selection approach , theGoverrnment states its minimum requirements inthe solicitation, describes the Information thatofferors must submit for evaluation, uses a "go/no-go (pass/fail) evaluation of the technicalproposals, and awards to the responsibleofferor that submits a technically acceptablepropcnail at the lowest evaiuated certain situations, comparing only the cost of otechnically acceptable proposals would not / NnCostadequately ensure the most advantageous " Fact.