34.001
Definition
Effective competition in major system acquisitions requires at least two independent contractors actively contending to ensure the government receives the best value.
Overview
FAR 34.001 provides a specific definition for the term "effective competition" as it applies to major system acquisitions. This definition is foundational for understanding the requirements and expectations for competition in government contracting under Part 34. Effective competition is defined as a market condition where at least two independent contractors are actively competing for government business, ensuring the government receives the lowest cost or best technical solution that meets its needs. This definition sets the standard for evaluating whether a procurement process meets the competition requirements outlined in subsequent sections of Part 34.
Key Rules
- Definition of Effective Competition
- Effective competition requires at least two independent contractors to actively compete for a contract, ensuring the government receives optimal value (either lowest cost or best technical design).
Responsibilities
- Contracting Officers: Must ensure that solicitations and procurement strategies foster effective competition as defined in this section.
- Contractors: Should be aware that their participation in competitive processes is essential for meeting the government's competition requirements.
- Agencies: Must structure acquisitions to promote and document effective competition.
Practical Implications
- This definition clarifies what constitutes sufficient competition for major system acquisitions, impacting how solicitations are structured and evaluated.
- Understanding this definition helps avoid protests or challenges related to inadequate competition.
- Contractors should recognize the importance of independent, active participation to meet the government's competition standards.