Technical/Cost Evaluation - Sole Source

A Sole Source acquisition is an acquisition which is conducted with a single Contractor as a result of:

  • There being only a single source for a product or service;
  • A competitive acquisition with only one acceptable offeror;
  • An Engineering Change to an existing contract.
  • A Claim or Request For Equitable Adjustment (REA) (see definitions below)
Evaluation & Negotiation - Sole Source Process
Sole Source Proposal Evaluation Process

A Sole Source evaluation is substantially different from a competitive evaluation. The technical evaluation is limited to a review of the technical proposal to ensure the offeror is proposing to the full needs and requirements of the Government as defined in the solicitation. The cost evaluation becomes substantially more important because the Government is in a weak negotiating position. There normally will be a full audit of the contractors cost proposal. The auditors generally are limited to reviewing labor costs, subcontractor proposals, material costs, overhead and general and administrative expenses. A review of design and production hours are performed by the technical representatives of the project team. This review must be integrated into the auditors analysis to determine a strong position for the negotiations.

Claim. Federal Acquisition Regulation (FAR) 52.233-1(c) defines a claim as: “a written demand, seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract.” A written demand seeking payment exceeding $100,000 must be certified to be a claim. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a claim. The submission may be converted to a claim, by written notice to the contracting officer as provided in FAR 33.206(a), if it is disputed either as to liability or amount, or is not acted upon in a reasonable time. As stated in FAR 33.205, a request for relief under Public Law 85-804 as implemented in FAR 50 is not a claim.

REA. A request for equitable adjustment (REA) is a letter or proposal from a contractor requesting a change to the contract price, schedule, specifications, or other terms and conditions, to compensate the contractor for injuries resulting from government fault. Under Reflectone, Inc. v. Dalton,, 60 F. 3d 1572 (Fed. Cir. 1995), there is no longer any distinction between an REA and a claim. Termination proposals are not considered REAs for purposes of this instruction.

Last Update: 16 July 2014
Contracts Requests Proposal Contractor Submits Proposal Contracts Requests PER and DCAA Audit IPT Planning Meeting Conduct Preliminary Technical/Cost Review Quick Look Review Return Proposal to Contracts Prepare Proposal Evaluation Report Conduct Fact Finding Planning Meeting IPT Review PER Pre-Negotiation Business Clearance Conduct Fact Finding Conduct Final Technical/Cost Review Conduct Negotiation Planning Meeting Conduct Negotiations Post Negotiation Business Clearance Award Contract Major Problem with Proposal Is Fact Finding Required