Effectively Evaluating Risk Through Factors Defense Acquisition University Exercise handout
Exercise Instructions – Read the consensus findings and determine from the narrative what is the adjectival rating (AJ) and risk rating (R)
Technical Factor – Maintenance: Battery Life AJ – ; R – The Offeror’s proposal conveyed qualifying statements that their Flux Capacitor’s battery life shall meet the Government’s Performance Specification Attachment 3, paragraph 2.1.1 “Mean time to failure” threshold of 1,000 charges. Offeror’s proposal indicates an adequate approach and understanding of the requirement. Although the Proposal contains a significant weakness, special contractor emphasis and close Government monitoring will likely be able to overcome difficulties thus the Risk to the Government is moderate. The flaw that appreciably increases the risk of unsuccessful contract performance (i.e., Significant Weakness) identified (Proposal pg. 8, sec 2.23) is the testing sample size that supported Offeror’s ability to meet the Government’s requirement was limited to 25 units and units were not tested in all temperature environments of the intended use. Page 2 CON 280: Day 1, v 3.0
Aligning Federal Regulation Rating Definitions to What You Say and How You Say It • A Weakness is defined as a flaw in the proposal that increases the risk of unsuccessful contract performance • A Significant Weakness is defined as a flaw that appreciably increases the risk of unsuccessful contract performance • A Strength is defined as an aspect of an offeror’s proposal that has merit or exceeds specified performance or capability requirements in a way that is advantageous to the Government during contract performance. • A Deficiency is defined as a material failure of a proposal to meet a Government requirement, or a combination of significant weaknesses, in a proposal that increases the risk of unsuccessful contract performance to an unacceptable level. Page 3 CON 280: Day 1, v 3.0
Risk Description Ratings Source: OSD DOD Source Selection Procedures 3/31/16 Rating Description Proposal may contain weakness(es) which have little potential to cause disruption Low of schedule, increased cost or degradation of performance. Normal contractor effort and normal Government monitoring will likely be able to overcome any difficulties. Proposal contains a significant weakness or combination of weaknesses which may Moderate potentially cause disruption of schedule, increased cost or degradation of performance. Special contractor emphasis and close Government monitoring will likely be able to overcome difficulties. Proposal contains a significant weakness or combination of weaknesses which is High likely to cause significant disruption of schedule, increased cost or degradation of performance. Is unlikely to overcome any difficulties, even with special contractor emphasis and close Government monitoring. Proposal contains a material failure or combination of significant weaknesses Unacceptable that increases the risk of unsuccessful performance to an unacceptable level. Page 4 CON 280: Day 1, v 3.0
DoD METHODOLOGY 2: COMBINED Technical/Risk Ratings Color Rating Description Blue Outstanding Proposal indicates an exceptional approach and understanding of the requirements and contains multiple strengths, and risk of unsuccessful performance is low. Purple Good Proposal indicates a thorough approach and understanding of the requirements and contains at least one strength, and risk of unsuccessful performance is low to moderate. Green Acceptable Proposal meets requirements and indicates an adequate approach and understanding of the requirements, and risk of unsuccessful performance is no worse than moderate. Yellow Marginal Proposal has not demonstrated an adequate approach and understanding of the requirements, and/or risk of unsuccessful performance is high. Red Unacceptable Proposal does not meet requirements of the solicitation, and thus, contains one or more deficiencies and/or risk of unsuccessful performance is unacceptable. Proposal is unawardable. 5 Page 5 CON 280: Day 1, v 3.0
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