15.101 Best value continuum
Source: FAR 15.101 on acquisition.gov
FAR 15.101 allows agencies to tailor their source selection approach to achieve best value, balancing cost, technical, and past performance factors based on acquisition risk and requirements.
Overview
FAR 15.101 outlines the concept of the "best value continuum" in negotiated acquisitions, emphasizing that agencies have flexibility in selecting the most appropriate source selection approach based on the specific acquisition. The regulation recognizes that the importance of cost or price versus technical or past performance factors will vary depending on the nature of the requirement and the associated risks. For well-defined, low-risk acquisitions, cost or price may be the primary consideration. For less defined, higher-risk, or development-heavy acquisitions, technical merit and past performance may take precedence. This section sets the stage for the detailed processes described in subsequent sections, such as tradeoff, lowest price technically acceptable (LPTA), and tiered evaluation methods.
An agency can obtain best value in negotiated acquisitions by using any one or a combination of source selection approaches. In different types of acquisitions, the relative importance of cost or price may vary. For example, in acquisitions where the requirement is clearly definable and the risk of unsuccessful contract performance is minimal, cost or price may play a dominant role in source selection. The less definitive the requirement, the more development work required, or the greater the performance risk, the more technical or past performance considerations may play a dominant role in source selection.