True" Music. Applause. Music. The information discussed in this podcast episode are merely opinions and do not constitute a formal policy or legal guidance of any kind. Hello and welcome to another podcast. The video blog where we talk about important procurement concepts in 10 minutes or less. We guarantee it. I'm Sandra Oliver Schmidt with the Pill and I'm Tony Pellegrino, a contracting officer with U.S Citizenship and Immigration Services. We're going to talk to you about a technique called affordability. When teams receive proposals from vendors, sometimes many of the price proposals are way off base. They're either too high or too low. That's right, Sandra. Sometimes our requirement documents alone fail to convey the true scope of the work, which makes it difficult for vendors to provide a relevant and appropriate price. Now, to use the affordability technique, the government provides vendors with a target price or a narrow price range to reduce the gamesmanship and the bid and proposal process. So, if the independent government cost estimate is $75 million, then consider posting an affordability range of $70 million to $80 million dollars and actually put that in the solicitation. Now, the government can select a vendor with a price that's under, in between, or over the target or the range, like any best value trade-off analysis. Now, Tony, you recently used the affordability technique. How did you use it and what did it look like in practice? So, this slide shows the actual language that I used in our solicitation. I went ahead and I told the vendors the government's estimated range or affordability. I'll read the language. "I priced in the solicitation to assist offerors with assessing the magnitude of services to be provided during contract ance and to develop a resource-loaded ance work statement. The government estimates that...
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