Common use of COST EVALUATION Clause in Contracts

COST EVALUATION. Evaluation points are not awarded for cost. The review of the cost proposal shall include a cost realism analysis to determine what the Government should realistically expect to pay for the proposed effort, the Offeror’s understanding of the work, and the Offeror’s ability to perform the contract. These will consist of a review of the cost portion of an Offeror’s proposal to determine if the overall costs proposed are reasonable and realistic for the work to be performed, if the costs reflect the Offeror’s understandings of the requirements, and if the costs are consistent with the technical proposal. Evaluation of cost proposals will consider but not be limited to the following: - Cost realism and completeness of cost proposal and supporting documentation. - Cost efficiency of proposed Other Direct Costs (ODCs). Offerors are reminded that the U.S. Government is not obligated to award a negotiated contract on the basis of the lowest proposed cost (see FAR 15.101-1) or to the Offeror with the highest technical evaluation score. For this procurement, however, technical proposal merits are considered significantly more important than cost relative to deciding who best might perform the work. Therefore, after the final evaluation of the proposals, the Contracting Officer will make the award to the Offeror whose proposal offers the best value to the Government, considering both technical and cost factors. It should be noted that estimated cost is an important factor and its importance as an evaluation factor will increase as the degree of equality of technical competence between proposals increases.