When the lowest offer doesn’t win the contract
99% of the time…the government will pick the lowest bidder for a contract.
But what happens the other 1% of the time?
Well, sometimes…even if you have the lowest offer…the government may still not pick you.
This is what’s called a “best-value trade-off basis.”
Pretty much…an agency can pick a higher offer if they believe it’s in the best interest of the government.
I recently came across an example of this with the U.S. Army.
They had an IDIQ contract opportunity for foreign language interpretation and translation…
And stated that the “technical” factor (how the job would be done and the previous experience) would be significantly more important than the cost.
Two companies submitted offers:
→ Valiant Government Services, LLC $1.4 million
→ Worldwide Language $1.3 million
Even though Worldwide’s bid was 5% cheaper….the contract was awarded to Valiant.
Worldwide tried to fight the decision with numerous arguments…but ultimately…when it comes to evaluating proposals….
It’s a matter within the contracting agency’s discretion.
So…the lesson here for us folks utilizing the “middleman strategy”:
→ Work that “secret sauce” strategy to help you formulate the best, most competitive offer…submit it...and MOVE ON.
Because agencies can select contractors for various reasons….and for you and me...it’s a numbers game.
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James Seme
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When the lowest offer doesn’t win the contract
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