Ideally, after the outcome of the evaluation process, a Preferred Proponent is selected. If a single Preferred Proponent cannot be identified but the Steering Committee believes a value for money solution can be achieved, a Best and Final Offer (“BAFO”) may be used. The use of BAFOs has been successful in delivering value for money on previous projects. BAFOs may be appropriate to use where:
• Costs submitted by all bidders are too high, or
• A ‘Preferred Proponent’ cannot be clearly determined based on the evaluation criteria given in the Call, or
• All bidders submitted responses that are unclear or deficient in one or more areas.
It may be appropriate to inform the BCC of proceeding to a BAFO. The procuring agency should seek Treasury guidance on whether the BCC should be informed.
In order to minimise costs to the private sector and the Government:
• Only those bidders which are believed capable of delivering the desired results should be invited to participate in the BAFO;
• The BAFO should be completed within a short, well-defined period; and
• Agencies should only request one BAFO.
The bidders selected for the BAFO process should be provided with detailed questions relating to their proposals and/or informed of those parts of their proposal which are deficient. The bidders are then given the opportunity to revise their bids and eliminate any unacceptable conditions contained in their original proposals. The amended sections are then re-evaluated and re-scored according to the evaluation process defined in the Call.