5.4.2  Best and final offer ("BAFO")

Ideally, after the outcome of the evaluation process, a preferred bidder is selected.  If a single preferred bidder cannot be identified but the Project Steering Committee believes a value for money solution can still be achieved, a BAFO may be used.  Providing a value for money outcome can still be achieved, BAFOs may be appropriate to use where:

•  costs submitted by all bidders are too high; or

•  a preferred bidder cannot be clearly determined based on the evaluation of RFP responses against the evaluation criteria in the RFP; or

•  all RFP responses are deficient in one or more areas.

To minimise costs to the private sector and government:

•  only those bidders 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 request only one BAFO.

The bidders selected for the BAFO process should be provided with detailed questions relating to their proposals and/or informed of the deficient parts of their proposal. 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 RFP.