No, price is not the only factor in evaluating Reverse Auction responses.
Reverse auctions are known for providing buyers with lower prices. A misconception of reverse auctions can be that the lowest price vendor receives the award. Price is just one factor in any evaluation, and the same is true when a reverse auction is used. Automating price negotiation allows buyers to negotiate more buys than otherwise and allows them more time for key procurement decisions, such as the award evaluation.
The Unison Marketplace team introduces its latest feature that enables you to easily identify whether you are using Lowest Price Technically Acceptable (LPTA), Tradeoff source selection methods, or something different like creating a Sources Sought.
What Is LPTA?
The lowest price technically acceptable (LPTA) source selection process is an evaluation method for cost and price proposals. The government decides its minimum acceptable technical requirements and awards a contract to the lowest priced offeror who meets the minimum requirements.
What Is Tradeoff?
A tradeoff source selection process is appropriate when it is in the best interest of the government to consider awarding to someone other than the lowest priced offeror. Some agencies may also refer to this as ‘Best Value’.
What Is Sources Sought?
A Sources Sought notice is used by agencies to solicit interest in a project under consideration.
Here’s How It Works:
When posting a buy on Unison Marketplace, you will see a new section included on the Start Buy screen labeled ‘Contracting Method or Sources Sought (RFI)’. This was requested by the government. You can also provide any specific Criteria you require, if applicable. The Unison Marketplace team can prefill the Contracting Method for your Agency if you desire. Your Unison Marketplace Account Team can pull reports on buys you have posted based on the Contracting Method selected. The Contracting Method you choose will be listed under the bidding requirements Sellers see and will require Sellers to agree to the method.
Why You Will Love It:
- Easily identify whether you’re doing an LPTA or Tradeoff source selection process
- Vendors will know exactly where to look to review the evaluation criteria prior to bid submission
- Agencies can now receive reporting on usage of LTPA and Tradeoff source selection process
If you have any questions on contracting methods, sources sought, or how to post a buy, please contact your Account Manager.