Is it acceptable for me to use distance from the medical facility to the vendor as an evaluation factor?
The keys in determining appropriate evaluations factors are to choose factors that enhance completion and enable us to properly evaluate the critical discriminators in assessing offers to determine the best deal.
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Given that a key aspect of this arrangement involves the client (veteran) to travel to for a fitting, it is sensible to put a reasonable limit on how far the veteran would have to travel. The additional travel costs money for the veteran to get there and return (or for the VA if it is considered to be reimbursable) as well as time away from work or other activities.
This answer is based on the information provided. Any decision should also be reviewed by your legal department when evaluation criteria is finally selected.