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GAO-04-155R 1 (2003-10-03)

handle is hein.gao/gaobaamhz0001 and id is 1 raw text is: im & , G A 0 Comptroller General . ....LAccountability * Integrity Reliability of the United States United States General Accounting Office Washington, DC 20548 October 3, 2003 The Honorable George V. Voinovich Chairman The Honorable Richard J. Durbin Ranking Member Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia Committee on Governmental Affairs United States Senate Subject: Questions for Competitive Sourcing Hearing Record It was a pleasure to appear before the subcommittee on July 24, 2003, to discuss various competitive sourcing issues, including the recent revisions made by the Office of Management and Budget (OMB) to its Circular A-76. This letter responds to your request for my views on the following questions for the record: Q. The revised OMB Circular A-76 makes best value instead of lowest cost the factor that agencies must use in determining who will win a public-private competition. Some have alleged that this change is simply an effort to ensure that more private contractors win competitions. How do you see agencies benefiting from the change? How much of a factor do you see cost playing in determining which bidder is offering an agency the best value? For many years, federal agencies conducting negotiated procurements under the Federal Acquisition Regulation (FAR) routinely have traded off cost and non-cost factors in making contract award decisions. The tradeoff process is often called best value. Among the most common non-cost factors, all of which are required to be identified in the solicitation, are the contractor's technical approach, past performance, and management plan. Tradeoffs reflect a widespread practice used by other governments (state, local, and foreign) as well as by the private sector. The tradeoff process moves the federal government past the low bid mentality of the past, with increasing consideration of factors such as quality and past performance. It entrusts federal employees acting as source selection officials with the authority to use their judgment in selecting among proposals offered. While concern sometimes has been expressed that the tradeoff process allows source selection officials very broad discretion, that discretion has boundaries. An award decision must comply with pre-established evaluation criteria, and is subject to challenge if it appears it did not. In this regard, GAO considers bid protests GAO-04-155R Competitive Sourcing

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