17.106-2 Solicitations
Source: FAR 17.106-2 on acquisition.gov
Solicitations for multi-year contracts must clearly define requirements, evaluation criteria, and cancellation provisions to ensure fair and transparent competition.
Overview
FAR 17.106-2 outlines the requirements for solicitations involving multi-year contracts. It mandates that solicitations must clearly specify all evaluation factors, including detailed requirements for each program year, criteria for comparing single-year and multi-year offers, and provisions for cancellation ceilings. The section ensures transparency and fairness in evaluating multi-year contract proposals by requiring explicit statements about the scope of requirements, evaluation methods, and award limitations. It also addresses how administrative costs and cancellation ceilings should be treated in the evaluation process, ensuring that only reasonable and clearly stated costs are considered, and that cancellation ceilings are not used as evaluation factors.
Key Rules
- Requirements by Program Year
- Solicitations must specify requirements for the first program year and for each year of the multi-year contract.
- Evaluation Criteria
- Must include criteria for comparing first-year-only offers to multi-year offers.
- Award Limitation
- Award cannot be made for less than the first program year requirements.
- Cancellation Ceiling Provisions
- Solicitations must specify separate cancellation ceilings and applicable dates for each program year subject to cancellation.
- Administrative Costs
- Government administrative costs of annual contracting may be included in evaluation only if they are reasonable and stated in the solicitation.
- Cancellation Ceiling Exclusion
- Cancellation ceilings cannot be used as evaluation factors.
Responsibilities
- Contracting Officers: Ensure solicitations include all required provisions, evaluation criteria, and clear statements regarding requirements, cancellation ceilings, and administrative costs.
- Contractors: Review solicitations carefully to understand evaluation methods, requirements by year, and the implications of cancellation ceilings and administrative costs.
- Agencies: Oversee compliance with solicitation requirements and ensure transparency in the evaluation and award process.
Practical Implications
- This section ensures that multi-year contract solicitations are transparent, fair, and provide clear evaluation criteria for both the government and offerors.
- Contractors must pay close attention to how requirements and evaluation factors are structured in solicitations to prepare compliant and competitive proposals.
- Common pitfalls include misunderstanding the impact of cancellation ceilings or failing to address all program year requirements in proposals.
Solicitations for multi-year contracts shall reflect all the factors to be considered for evaluation, specifically including the following:
(a) The requirements, by item of supply or service, for the-
(1) First program year; and
(2) Multi-year contract including the requirements for each program year.
(b) Criteria for comparing the lowest evaluated submission on the first program year requirements to the lowest evaluated submission on the multi-year requirements.
(c) A provision that, if the Government determines before award that only the first program year requirements are needed, the Government’s evaluation of the price or estimated cost and fee shall consider only the firstyear.
(d) A provision specifying a separate cancellation ceiling (on a percentage or dollar basis) and dates applicable to each program year subject to a cancellation (see 17.106-1(c) and (d)).
(e) A statement that award will not be made on less than the first program year requirements.
(f) The Government’s administrative costs of annual contracting may be used as a factor in the evaluation only if they can be reasonably established and are stated in the solicitation.
(g) The cancellation ceiling shall not be an evaluation factor.