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  • Question

    Do I evaluate each company separately that is included in the joint venture and then put their evaluations together to determine where the risk and there rating?


    Answer

    As you are probably aware, neither FAR Part 15, DFARS Part 215, nor the new DoD Source Selection Procedures address exactly how to evaluate a joint venture proposal. It's up to the contracting officer or other source selection authority to establish a reasonable evaluation scheme that is fair and can easily be defended if challenged. If trade-off analysis is used during the evaluation, it is important that each joint venture member's experience and capability be related to the size, scope, and complexity of the portion of the work that each is proposed to perform.

    The new DoD Source Selection Procedures (which can be found here) does not prescribe the use of percentages during evaluations, so it won't be necessary to precisely determine that "Company A is performing x% of the work." However, Company A's contribution to the overall effort still must be addressed during the evaluation. Because the evaluation ratings are not numerical, the combined ratings of each joint venture partner cannot be averaged. Instead, the source selection authority and evaluation team(s) may want to assign overall ratings (Outstanding, Good, Acceptable, etc.) for the joint venture based on the evaluation of each member's contribution to the overall effort. I know of no specific prohibition against bypassing individual ratings for each joint venture member and assigning a rating to the overall venture for each rating category. However, thoroughly evaluating each member's proposed contribution before providing an overall rating for the joint venture will provide a more defensible source selection decision. 

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