BAFO (Best and Final Offer)
A contractor's final revised proposal submitted after discussions with the government, incorporating any technical or price revisions in response to the agency's requests.
A Best and Final Offer (BAFO) is a contractor's last opportunity to revise its proposal before the government makes the source selection decision. It follows a period of discussions or negotiations during which the agency identifies weaknesses, deficiencies, and areas for improvement in the competing proposals.
When BAFOs Are Requested
After evaluating initial proposals, the contracting officer establishes a competitive range of the most highly rated proposals and conducts written or oral discussions with each offeror in range. The purpose is to clarify proposal weaknesses, discuss technical approaches, and negotiate pricing. After discussions are complete, the CO issues a Final Proposal Revision (FPR) request, which is the formal equivalent of the BAFO request under current FAR terminology.
What Can Change in a BAFO
Contractors may revise any part of their proposal in response to a BAFO/FPR request. Common changes include reducing proposed price in response to competitive pressure, addressing evaluated weaknesses in the technical or management volumes, updating key personnel resumes, revising the subcontracting plan, and strengthening past performance citations.
BAFO Strategy
The BAFO round is a critical strategic moment. The agency's evaluation letter typically identifies what was found weak or deficient without explicitly telling you what your competitors offered. Reading between the lines of the evaluation findings to understand what the source selection board values most is essential for prioritizing your revisions. Changing everything dilutes the improvements. Changing only what matters most focuses evaluator attention on the right improvements.
Single-Round Acquisition
Not all acquisitions include discussions and a BAFO round. When the solicitation states that award may be made without discussions, the government can select a winner based on initial proposals alone. In these cases the initial proposal must be the best offer the contractor can make, because there may be no opportunity to revise.
Frequently asked questions
Can a BAFO increase a proposed price?
Technically yes, but it is almost always inadvisable. The government issues a BAFO request partly because it expects competitive pressure to reduce prices. Increasing price during a BAFO round will almost certainly result in elimination from the competition unless the increase is accompanied by a genuinely compelling additional technical offer.
What is the difference between a BAFO and a Final Proposal Revision?
Final Proposal Revision (FPR) is the current FAR-compliant terminology introduced in FAR Part 15. BAFO is the older term that remains widely used in practice. Functionally they are the same: a contractor's final revised proposal submitted after the government's discussions or clarification process.