Technical Analysis and Cost Evaluation for Project Proposals

Introduction 

Technical analysis is essential for the evaluation of each element that pertains to the direct costs that are usually present in the proposal of any project. Cost evaluation is conducted to ensure that all of the materials proposed meet the requirements and full needs of the Government. Essentially, this is due to the fact that the government is often in a weak negotiating position. Elements to undergo the process of evaluation include material goods, labor costs, subcontractor proposals, and general and administrative expenses. The main reason for evaluating both cost and technical factors is to make sure that the contractors have the ability to perform and complete the project successfully. Additionally, the government can award the contract to the best proposal in terms of cost effectiveness and quality of the project as outlined in the proposal. There are several factors that should be considered when determining the best proposal; as chairman of the source selection evaluation team, integrity, fairness and competitive range of different projects will be some of the factors to consider. 

The Importance of Integrity and Fairness 

Integrity and fairness are important values to observe during technical and cost evaluations as it enables a fair process with respect to the consideration of the proposals presented. To achieve this, procedures should be set, and this should be adhered to by all of the people in the evaluation team and the different contractors. Integrity procedures will stipulate what is expected of every individual participating in this process (Henningsen, Hægeland, & Møen, 2015). Moreover, every reasonable effort should be made to ensure that compliance is observed. Mainly, because deviation from these procedures affects the integrity and fairness of the evaluation process. As chairman of the source selection and assessment team, it will be a priority to ensure that the process is conducted strictly in accordance with the procedures documented in the procumbent record. No external influence from different contractors will be allowed in the process by receiving gifts. The reason behind these requirements is to ensure that all tabled offers are equally evaluated, and no one gains an unfair advantage. 

Factors that Determine the Competitive Range 

Competitive range refers to a range of offers that are qualified for a competitive procurement. It uses negotiation procedures by the contracting office. A competitive range is comprised of the most highly rated proposals. The competitive range is of the essence to technical and cost evaluations when contracting in a competitive acquisition. When establishing a competitive range, there are factors that should be considered. The expected dollar value of the award, coupled with the resources available to conduct discussions in comparison to the expected variable administrative costs. In addition, the need for the timely delivery of the proposals and the complexity of the acquisition of offered solutions are all factors to consider when determining the competitive range (Kim, 2013). The contracting officer decides whether an offeror’s proposal is to be included in the competitive range. The written competitive range should be provided based on all evaluation factors; this document is referred to as the competitive range determination memorandum. 

Outline of the Final Technical Evaluation Report 

Creating a framework is essential as it is a useful guideline on how to conduct the technical and cost evaluations and further, provides stipulations of how to communicate our findings after the process. Additionally, it helps in planning for the evaluation process as it identifies all of the areas to be covered. It contains six sections, each addressing a different issue regarding technical and cost evaluations. 

Section 1- Summary 

In this part, a summary is provided, giving the reason for conducting the evaluation and the parties targeted by the process. Any conclusions or recommendations should also be included in the review section. It is meant for the people who will not read the whole report but are interested in the scope of the technical and cost evaluations covered. It should cover; who the report is aimed at; what was evaluated; why the evaluation was conducted; major findings of the process and recommendations and indicate any restrictions placed on the evaluation and by who. 

Section 2- Background 

Here, the background to the evaluation process and its objectives are outlined. Additionally, there should be an in-depth description of the program; this should be based on the knowledge level of the audience regarding the program. This section should include the origin of the program; aims and participants in the program; characteristics of materials present, and staff involved in the process. 

Section 3- Description of the Evaluation 

This section covers the intention of the program and why the evaluation was conducted. What it was or was not supposed to be accomplished is also indicated. Also, the methodology and any technical information relevant to the process should be included. For instance, how the data was collected and the tools used for evaluation. 

Section 4 and 5- Results and Discussions 

Depending on the size of the report, these sections can either be combined or written separately. Section 4 covers the results acquired from the work conducted, together with any other evidence that would have been collected. Here, use of graphics is encouraged, for example, tables and charts to illustrate the results. However, graphics should be applied sparingly to increase their effectiveness. Section 5, on the other hand, covers the discussion and interpretation of the findings of the whole process. This should be done in relation to the purpose and the set goals of the evaluation as outlined in the section 3. Also, any unexpected results that were collected during the process are of great importance and are recorded under this section. 

Section 6- Conclusions 

This is the most relevant section of the report apart from the summary. Essentially, this is because people will mostly read only the summary and conclusions in most reports. Therefore, it should be stated precisely and clearly for easier understanding. The main points regarding the report and any recommendations should be preferably presented in as a list so that anyone can easily see them. 

Factors to Consider when Evaluating Price Reasonableness 

In any purchase, it is of the essence to ensure that funds are utilized in a cost-effective manner by making sure that the price to be paid is reasonable and fair. As a result, the limited resources are conserved, and the overall goal, which is the purchase of the required goods or services is accomplished. These factors include historical prices, market prices, and the established price list. Furthermore, one should consider the price competition and compare the price with that at which the desired goods and services are being sold to the Federal Government (Yao, & Liu, 2016). Mainly because prices set by companies to the government are presumed to be fair and reasonable. As such, the presented price should not vary widely from that given to the government. In all of these factors, the primary consideration is to assure that the price paid for goods or services is reasonable and fair. 

Conclusion 

Technical and cost evaluation is an important aspect in selecting the best offer among proposals presented by different offerors. Depending on the priority placed on a given contract, cost or value can be used to assess the various offerors. To determine the best prospect for a given program, there should be thorough analyses of the offered presented. Through a fair process which upholds integrity, the best alternative is chosen for the contract. Standards should also be put in place for offerors to comply with in order for their proposals to be acceptable. At the end of the evaluation process, the Government should choose the best alternative in terms of quality and cost to ensure the project is undertaken successfully. 

References 

Henningsen, M. S., Hægeland, T., & Møen, J. (April 01, 2015). Estimating the additionality of R&D subsidies using proposal evaluation data to control for research intentions. The Journal of Technology Transfer, 40, 2, 227-251. 

Kim, J. S. (January 31, 2013). A Study on Process Models for Proposal Evaluation of R&D EU Government Support Programmes. Journal of the Korea Academia-Industrial Cooperation Society, 14, 1, 80-84. 

Yao, J., & Liu, J. (January 01, 2016). E-Government Project Evaluation: A Balanced Scorecard Analysis. Journal of Electronic Commerce in Organizations (jeco), 14, 1, 11-23.