Streamline pricing by asking vendors to submit their best hourly rates, then apply the rates to a Government developed estimate, in hours, for each labor category
The Rates Only for Pricing Evaluations (ROPE) methodology alleviates the burden on vendors submitting complex pricing submissions and on contracting officers when evaluating these submissions as part of establishing an indefinite-delivery indefinite-quantity (IDIQ) contract or blanket purchase agreement (BPA).
Prior to the issuance of the solicitation, the Government creates a realistic estimated number of hours or a scenario of the labor categories or CLINs to evaluate pricing. In contrast to typical practice, the Government does not share the number of hours with the vendors. Instead, the Government asks vendors to submit only the rates, for the price submission factor, of the requested labor categories for the parent award, using the same scenario or estimate for all price evaluations. The submitted rates by the vendors are evaluated by the Government and inputted into the estimated hours or scenario to come up with the total evaluated price for each vendor. The total evaluated price is used for evaluation purposes only. All proposed labor categories and rates are incorporated into the final award. The scenario and results are shared with vendors as a part of their debriefing or when being given a brief explanation of the award decision.
ROPE is recommended for use when using a best-value tradeoff to award single-award IDIQs and BPAs and may be used in a multiple-award environment. ROPE is highly recommended for labor hour or time-and-materials type IDIQs or BPAs and may be used for other contract types. This technique should not be used for the award of orders against an existing IDIQ or BPA.
Consider this text in your next solicitation:
“To help select the best value Quoter for this BPA [or IDIQ] opportunity, the Government will use the hourly rates from the BPA [or IDIQ] LCAT Pricing Rate Worksheet/Excel Spreadsheet. The Government will apply those rates to an estimated number of hours for each labor category to arrive at a total evaluated price. Quoters shall submit the attached pricing worksheet.”
OR
“All vendors must complete the LCAT Pricing Rate Worksheet by completing all cells not already filled-in by the Government. The Government will then apply those rates to a sample task order scenario to arrive at a total evaluated price to use in the best-value tradeoff analysis. The estimate [or ceiling] provided in the solicitation may assist in coming up with discounted rates for the base period and all option periods. The Government will not disclose this sample task order scenario with vendors.”
- Streamlines the submission of pricing for vendors.
- Enables contracting officers to perform a more efficient evaluation of vendor price submissions.
- Reduces the gamesmanship in pricing submissions.
- Streamlines the solicitation, evaluation, and award process. Eliminates the need for a full “sample task order” and instead focuses only on the realistic scenario pricing.
- Reduces the burden for the government during price evaluation and streamlines time to award. The government evaluates the rates and discounts submitted for the life of the parent vehicle and applies the vendor rates to the estimated hours or scenario.
- SMALL BUSINESS BENEFIT: Streamlines and reduces the complexity of the vendor’s price proposal submission.
In contrast to the typical price submission model, the government only asks vendors to submit their best hourly rates. This technique eliminates the need to develop a sample requirements document (SOW, PWS, or SOO) for a sample order against the parent IDIQ or BPA thereby streamlining the pricing submission and evaluation time.
