2.4.3.6  Cost/Price Risk Factor

This evaluation factor shall be used for ACAT, SDD phase programs that use a CR or FPI type contract structure where MPC will be utilized in the Cost/Price Factor.  The purpose of this risk rating is to provide information to the SSA that permits selection of an offeror who has proposed a rational and realistic cost or price for the work to be accomplished.  The Air Force is deeply concerned by the risk to our programs associated with overly optimistic or unrealistic cost or price proposals.  The Cost/Price Risk evaluation assesses the degree to which an offeror's cost or price proposal for the specified contract line items included in the intended contract, and associated options if evaluated, compares with the estimated Government MPC for the same items.  Cost/Price Risk, when used, shall be a significant evaluation factor.  An offeror submitting costs or prices based upon unrealistic or overly optimistic development outcomes may result in that offeror not being selected for award.  In select cases, non-ACAT, SDD programs that use a CR or FPI contract type where a Government most probable cost/price evaluation will be estimated, may include the cost/price risk factor in their solicitation only with the expressed approval of the SSA.  The Cost/Price Risk Factor shall receive one of the Cost/Price Risk ratings identified in AFFARS MP5315.305, paragraph 5.5.4, Table 4 "Cost/Price Risk Ratings".