Question

The following has been received as a result of bids.

17. An RFP was issued for business training in an office environment. As a result, seven proposals were received. The subsequent rated and price evaluations for the firms are below.

Firm                             Rated Evaluation                    Financial Bid

A                                             90                                $150.000

B                                             85                                $140,000

C                                             80                                $120,000

D                                             75                                $110,000

E                                              70                                $120,000

F                                              65                                $119,000

G                                             60                                $100,000               

The evaluated pass mark for this requirement was 70

1. Which firm would be recommended to be awarded the contract if the method of evaluation is the lowest priced responsive (technically compliant) proposal?

2. Which firm would be recommended to be awarded the contract if the method of evaluation is the lowest priced responsive (technically compliant) proposal and there was a stipulated maximum financial budget of $139,000?

3. Which firm would be recommended to be awarded the contract if the method of evaluation is lowest price per point?

4. Which firm would be recommended to be awarded the contract if the method of evaluation is highest combined rating with price at 50% and rated evaluation 50% of the total?

5. Which firm would be recommended to be awarded the contract if the method of evaluation is highest combined rating with price at 25% and rated evaluation 75% of the total?

Note: you MUST show any calculations.

Answer 1

1. technically compliant means F and G are out of the picture. Out of what remain, the lowest priced is D with a bid of 110,000

2. technically compliant means F and G are out of the picture. Out of what remain, the lowest priced is D with a bid of 110,000. Also, this is less than the available fund of 139,000 so this constraint is also taken care of .

3. We calculate price per point

A - 150,000/90 = 1666.7

B - 140,000/85 = 1647

C - 120,000/80 = 1500

D - 110,000/75 = 1466

E - 120,000/70 = 1714

F - 119,000/65 = 1830

G - 100,000/60 = 1666

Lowest is for D

4. lets calibrate the numbers to be between 0 and 100

Evaluation : (x-60)/(90-60) [since 60 and 90 are minimum and maximum respectively]

A: 1 [(90-60)/(90-60) = 1]

B: 0.83

C: 0.67

D: 0.5

E: 0.33

F: 0.17

G: 0

Similarly, for bid: 1- (x - 100,000)/(150000 - 100000) (we subtract from 1 because less bid is better than more bid)

A: 0

B: 0.2

C: 0.6

D: 0.8

E: 0.6

F: 0.62

G: 1

final = 0.5*evaluation + 0.5*bid

A: 0.5*1 + 0.5*0 = 0.5

Similarly,

B: 0.565

C: 0.635

D: 0.65

E: 0.465

F: 0.395

G: 0.5

thus, D is best

5) final = 0.25*bid + 0.75*evaluation

A: 0.25*0 + 0.75*1 = 0.75

Similarly,

B:0.6725

C: 0.6525

D: 0.575

E: 0.3975

F: 0.2825

G: 0.25

A is best in this case