Award and documentation
Contracting officers must ensure and document price reasonableness, maintain minimal but sufficient records, and comply with notification and TIN requirements for simplified acquisitions.
Overview
FAR 13.106-3 outlines the requirements for awarding contracts and documenting procurement actions under simplified acquisition procedures. The section emphasizes the need for contracting officers to determine price reasonableness before making an award, using competitive quotations when possible. If only one response is received, the contracting officer must document the basis for price reasonableness using various acceptable methods, such as market research or comparison to previous purchases. The regulation also addresses how to handle minimum order quantities that exceed requirements, requiring communication with the requiring activity and proper documentation. Documentation requirements are kept minimal but must be sufficient to support management review and justify the award decision. Special documentation is required in cases of limited competition, use of non-price factors, or lowest price technically acceptable (LPTA) selections (except DoD). Notification to unsuccessful suppliers is only required upon request or as specified, and brief explanations must be provided if the award was based on factors other than price. For oral solicitations, the contractor’s Taxpayer Identification Number (TIN) and organization type must be included in the award documentation sent to the payment office, with disclosure of potential government use of the TIN for debt collection purposes.
Key Rules
- Price Reasonableness Determination
- Contracting officers must determine and document that the price is fair and reasonable before award, using competitive quotes or other justifiable methods if only one response is received.
- Minimal Documentation
- Maintain only essential records to support the award, including supplier names, prices, and terms for oral solicitations, and brief notes for written solicitations below the simplified acquisition threshold.
- Special Situations Documentation
- Additional statements are required for lack of competition, use of non-price factors, or LPTA (except DoD), and for minimum order issues.
- Notification and Explanation
- Notify unsuccessful suppliers only if requested or required, and provide brief explanations if award is based on non-price factors.
- Taxpayer Identification Number (TIN) Requirement
- For oral solicitations, ensure the award document sent to the payment office includes the contractor’s TIN and organization type, and disclose government use of TIN for debt collection.
Responsibilities
- Contracting Officers: Must determine price reasonableness, document the basis for award, maintain minimal but sufficient records, handle special documentation situations, provide notifications and explanations as required, and ensure TIN requirements are met.
- Contractors: Should be prepared to provide information supporting price reasonableness and understand that TIN and organization type will be used for government reporting and debt collection.
- Agencies: Must retain procurement documentation for management review and ensure compliance with notification and documentation requirements.
Practical Implications
- This section ensures transparency and accountability in simplified acquisitions, balancing efficiency with proper documentation. Contracting officers must be diligent in documenting price reasonableness and award decisions, especially when competition is limited. Failure to properly document or notify can lead to audit findings or procurement delays. Contractors should be aware of the documentation and notification processes, especially regarding TIN disclosure and the basis for award decisions.