Department of
Veterans Affairs
Memorandum
Date:
February 8, 2018
From:
Deputy Senior Procurement Executive
Subj:
VA Procurement Policy Memorandum (PPM) 2018-04, Guidance and Procedures regarding
use of Tiered Evaluations (Cascading) for use in solicitations set-aside in accordance with
the VA Rule of Two (VAIQ # 7819747)
To:
Heads of Contracting Activities
1. Purpose: This PPM provides guidance, standardized procedures, and required
solicitation provisions when employing tiered evaluations for single or multiple-award
solicitations.
2. Background: The goal of this policy is to minimize delays in the re-solicitation
process that are incurred subsequent to application of the VA Rule of Two at either the
Service-Disabled Veteran-Owned Small Business (SDVOSB) or Veteran-Owned Small
Business (VOSB) priority tiers within a single synopsized solicitation. VA’s contracting
officers have requested guidance and procedures for use of tiered evaluations when
applying the VA Rule of Two. The below process constitutes the use of a set-aside and
must be identified as such within the solicitation. Market research, which shall be
conducted and documented in advance of issuing the solicitation, will inform which of the
three following types of tiered evaluations is being used: (1) tiered evaluations limited to
SDVOSBs or VOSBs; (2) tiered evaluations including small business concerns; and (3)
tiered evaluations including large business concerns. The order of priority for awarding
contracts to small business concerns is established in 38 U.S.C. § 8127(i).
3. Applicability: This PPM applies to all competitive procurements using tiered
evaluations. The use of tiered evaluations is not mandatory.
4. Effective Date: This PPM is effective immediately.
5. Action Required: Effective immediately, in accordance with applicable Veterans
Affairs Acquisition Regulation (VAAR) provisions, when utilizing tiered evaluations, Heads
of the Contracting Activities (HCAs), VA Contracting Officers (COs), and other VA
acquisition professionals shall adhere to the policy and procedures as follows:
(a)
Tiered evaluations limited to SDVOSBs or VOSBs. When limited to SDVOSB or
VOSB concerns, the Contracting Officer shall conduct the following steps:
(1)
In advance of issuing the solicitation, ensure documented market research,
as required in current policy and regulation, supports the tiered evaluation.
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Subj: PPM 2018-04, VA PROCUREMENT POLICY MEMORANDUM - Procedures for
Tiered Evaluations (Cascading)
(2)
Synopsize the procurement in accordance with Federal Acquisition
Regulation (FAR) Subpart 5.2 as a tiered evaluation for SDVOSB concerns
or, in the alternative, for VOSB concerns. The Federal Business
Opportunities Notice will include the words “TIERED EVALUATIONS” in the
subject line.
(3)
Evaluate the offers, if any, submitted by SDVOSB concerns. If no offers
were submitted by SDVOSB concerns, or if none of the offers would result
in award at a fair and reasonable price that offers best value to the United
States, withdraw the SDVOSB set-aside, document the basis for not making
an award within this tier as prescribed in subsection (f) below, and proceed
to the set-aside for VOSB concerns.
(4)
Evaluate the offers, if any, submitted by VOSB concerns. If no offers were
submitted by VOSB concerns, or if none of the offers would result in award
at a fair and reasonable price that offers best value to the United States,
withdraw the VOSB set-aside, cancel the solicitation, document that
cancellation in a memorandum for the record, and resolicit as either a small
business set-aside or an unrestricted procurement.
(b)
Tiered evaluations for small business concerns. In accordance with 38 U.S.C.
§ 8127(i), when including other small business categories, the Contracting Officer
shall:
(1)
In advance of issuing the solicitation, ensure documented market research,
as required in current policy and regulations, supports the tiered evaluation.
(2)
Synopsize the procurement in accordance with FAR Subpart 5.2 as a tiered
evaluation. The Federal Business Opportunities Notice will include the
words “TIERED EVALUATIONS” in the subject line.
(3)
Evaluate the offers, if any, submitted by SDVOSB concerns. If no offers
were submitted by SDVOSB concerns, or if none of the offers would result
in award at a fair and reasonable price that offers best value to the United
States, withdraw the SDVOSB set-aside, document the basis for not
making an award within this tier as prescribed in subsection (f) below, and
proceed to the set-aside for VOSB concerns.
(4)
Evaluate the offers, if any, submitted by VOSB concerns. If no offers were
submitted by VOSB concerns, or if none of the offers would result in award
at a fair and reasonable price that offers best value to the United States,
withdraw the VOSB set-aside, document the basis for not making an award
within this tier prescribed in subsection (f) below, and proceed to the set-
aside for other small business concerns set forth in each subsequent tier.
(5)
Evaluate the offers, if any, submitted by other small business concerns. If
no offers were submitted by other small business concerns, or if none of the
offers would result in award at a fair and reasonable price that offers best
value to the United States, cancel the solicitation, document in a
memorandum for record the basis for cancelation, and resolicit as an
unrestricted procurement.
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Subj: PPM 2018-04, VA PROCUREMENT POLICY MEMORANDUM - Procedures for
Tiered Evaluations (Cascading)
(c )
Tiered evaluations including large business concerns (which shall only be
used upon issuance of a deviation from the FAR). When including a large
business tier, the Contracting Officer shall:
(1)
In advance of issuing the solicitation, ensure documented market research, as
required in current policy and regulation, supports the tiered evaluation.
(2)
Synopsize the procurement in accordance with FAR Subpart 5.2 as a tiered
evaluation. The Federal Business Opportunities Notice will include the words
“TIERED EVALUATIONS” in the subject line.
(3)
Evaluate the offers, if any, submitted by SDVOSB concerns. If no offers were
submitted by SDVOSB concerns, or if none of the offers would result in award
at a fair and reasonable price that offers best value to the United States,
withdraw the SDVOSB set-aside, document the basis for not making an award
within this tier as prescribed in subsection (f) below, and proceed to the set-
aside for VOSB concerns.
(4)
Evaluate the offers, if any, submitted by VOSB concerns. If no offers were
submitted by VOSB concerns, or if none of the offers would result in award at a
fair and reasonable price that offers best value to the United States, withdraw
the VOSB set-aside, document the basis for not making an award within this
tier as prescribed in subsection (f) below, and proceed to the set-aside for
other small business concerns.
(5)
Evaluate the offers, if any, submitted by other small business concerns. If no
offers were submitted by other small business concerns, or if none of the offers
would result in award at a fair and reasonable price that offers best value to the
United States, withdraw the set-aside for other small businesses, document the
basis for not making an award as a set-aside as prescribed in subsection (f)
below, and proceed to the large business tier.
(6)
Evaluate the offers, if any, submitted by large business concerns. If no offers
were submitted by large business concerns, or if none of the offers would result
in award at a fair and reasonable price that offers best value to the United
States, cancel the solicitation, document that cancellation in a memorandum
for the record, and conduct additional market research to inform a follow-on
acquisition strategy.
(d)
Solicitation Notices. A solicitation issued using Tiered Evaluations shall include
the attached Solicitation Notice, as well as all required provisions/clauses for each
tier of prioritized awards, including appropriate limitations on subcontracting
clauses.
(e)
Evaluation at Lower Tiers Prohibited. For multiple-award solicitations, proposals
at a lower tier shall not be evaluated or considered for award unless award cannot
be made at a higher (or preceding) tier. If a solicitation permits awards consisting
of fewer than all CLINs, evaluation of a specific CLIN (or subset of CLINs) cannot
be conducted at a lower tier unless award of that same CLIN (or subset of CLINs)
cannot be made at a higher tier.
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Subj: PPM 2018-04, VA PROCUREMENT POLICY MEMORANDUM - Procedures for
Tiered Evaluations (Cascading)
(f )
Award Procedures. Even if only one proposal is received and evaluated in a tier,
the Contracting Officer should make award to that offeror if the proposal meets the
requirements of the solicitation and the proposed price is fair and reasonable in
accordance with FAR § 19.502-2, VAAR § 819.7005, VAAR § 819.7006(c).
However, if a Contracting Officer determines that award within a tier is not possible
for any reason, including but not limited to lack of responsiveness to the solicitation,
responsibility matters, exclusion due to suspension or debarment or unreasonable
pricing, the Contracting Officer shall fully document the basis for that conclusion in
the contract file, follow any required procedures, indicate that the set-aside at that
tier is being withdrawn, and then consider offers received at the next set-aside tier.
In the multiple-award context, if the Contracting Officer cannot make the requisite
number of contract awards because the remaining proposals are not awardable,
the Contracting Officer shall document the basis for not making additional contract
awards, and thereafter issue a new solicitation consistent with new or supplemental
market research.
(g)
Approving Officials. Tiered Evaluations for supplies/products/services, including
commercial items, will be approved by a contracting official at least one level above
the contracting officer who prepares and issues the solicitation. When using Tiered
Evaluations, the approving official will validate that supporting market research has
been thoroughly documented in advance of issuing the solicitation, and ensure that
both market research and an independent government estimate of the total cost
associated with the procurement is date-stamped and filed in the Department’s
electronic Contract Management System (eCMS) or any follow-on replacement
contract management system before the solicitation is issued.
6. Questions or Concerns: Please direct questions regarding this PPM to the Office
of Acquisition and Logistics (003A), Procurement Policy and Warrant Management
Service (003A2A), via email at VA.Procurement.Policy@va.gov or (202) 632-5288.
/s/
Thomas A. Burgess
Attachment: Solicitation Notice
ATTACHMENT
SOLICITATION NOTICE OF TIERED EVALUATIONS
This procurement is set-aside based on an order of priority as established in 38 U.S.C.
8127.
Choose one of the below Tiered Evaluation Notices (note: before including in solicitation,
delete this text and whichever two paragraphs do not apply):
TIERED EVALUATIONS LIMITED TO SDVOSB or VOSB: This solicitation is being
issued as a tiered evaluation for SDVOSB concerns, or in the alternative, as a tiered
evaluation for VOSB concerns. If award cannot be made, the solicitation will be
cancelled and the requirement resolicited.
TIERED EVALUATIONS INCLUDING SMALL BUSINESS CONCERNS: This solicitation
is being issued as a tiered evaluation for SDVOSB concerns, or in the alternative, a tiered
evaluation for VOSB concerns, or in the alternative, a set-aside for other small business
concerns with HUBZone small business concerns and 8(a) participants having priority. If
award cannot be made, the solicitation will be cancelled and the requirement resolicited.
TIERED EVALUATIONS INCLUDING LARGE BUSINESS CONCERNS: This solicitation
is being issued as tiered evaluation with the following tiers: (1) SDVOSB concerns, (2)
VOSB concerns, (3) small business concerns with HUBZone small business concerns
and 8(a) participants having priority; and (4) large business concerns. If award cannot be
made, the solicitation will be cancelled and the requirement resolicited.
END