Contracting by Negotiation
FAR Part 15 provides the comprehensive framework for conducting negotiated federal acquisitions, ensuring fairness, transparency, and best value throughout the procurement process.
Overview
FAR Part 15, "Contracting by Negotiation," establishes the policies and procedures for conducting negotiated procurements in federal contracting. This part covers the entire lifecycle of negotiated acquisitions, including source selection, solicitation and receipt of proposals, evaluation and award, contract pricing, notifications, protests, and handling unsolicited proposals. It provides detailed guidance for both contracting officers and contractors on how to conduct fair and effective negotiations, ensure transparency, and achieve best value for the government. The part is organized into subparts that address specific phases and requirements, such as source selection techniques (e.g., tradeoff and lowest price technically acceptable), proposal handling, pricing policies, and debriefings. FAR Part 15 is essential for acquisitions where competitive negotiation is used rather than sealed bidding, and it sets the foundation for complex procurements, including those involving cost analysis, technical evaluations, and post-award communications.
Key Rules
- Source Selection Processes and Techniques
- Outlines methods for evaluating proposals, including best value, tradeoff, and lowest price technically acceptable approaches.
- Solicitation and Receipt of Proposals
- Details requirements for issuing solicitations, handling proposals, and amending solicitations.
- Source Selection
- Provides procedures for evaluating proposals, conducting discussions, and making award decisions.
- Contract Pricing
- Establishes policies for obtaining and analyzing cost or pricing data, profit analysis, and negotiation documentation.
- Notifications, Protests, and Mistakes
- Covers requirements for notifying offerors, handling protests, and correcting mistakes.
- Unsolicited Proposals
- Sets forth procedures for receiving and evaluating proposals not solicited by the government.
Responsibilities
- Contracting Officers: Must follow prescribed procedures for negotiations, proposal evaluation, pricing, and notifications.
- Contractors: Must comply with proposal submission, pricing data, and communication requirements.
- Agencies: Responsible for oversight, ensuring fairness, and maintaining documentation throughout the acquisition process.
Practical Implications
- FAR Part 15 exists to ensure negotiated procurements are conducted fairly, transparently, and result in best value for the government.
- It impacts daily contracting by defining how proposals are solicited, evaluated, negotiated, and awarded.
- Common pitfalls include improper documentation, failure to follow evaluation procedures, and inadequate communication with offerors.