What is the role of risk assessment in the evaluation?

• A. It helps determine the likelihood of successful performance and informs the decision in the tradeoff process.
• B. It replaces the need for cost/price analysis.
• C. It determines the source selection method (best value vs. lowest price).
• D. It is used to determine the protest period.

Answer: (A)

In evaluation, risk assessment focuses on how likely it is that a contractor will perform successfully and on the potential issues that could affect timing, cost, or quality. This information feeds the tradeoff decision by translating risk into a value impact: a proposal with high performance potential but higher risk may be adjusted downward in overall value, while a lower-risk option—even if pricier—might be favored because it reduces the chance of schedule slips, defects, or contractor failure. The goal is to balance risk with cost and technical merit to identify the offer that represents the best overall value for the agency.

Risk assessment does not replace cost or price analysis, which remains necessary to determine price reasonableness and affordability. It also does not by itself determine the source selection method; the method is chosen by policy and strategic considerations, with risk potentially shaping the final decision within that framework. And it isn’t used to set protest timelines, which are governed by statute and agency procedures.