37.105
Competition in service contracting
Service contracts must be competed in accordance with FAR Part 6, using sealed bidding when appropriate, but agencies have flexibility in the competition method based on the service type.
Overview
FAR 37.105 establishes the requirement for competition in service contracting, emphasizing that, unless a statute provides otherwise, service contracts must be awarded using sealed bidding when the conditions in FAR 6.401(a) are met. It further clarifies that the statutory and regulatory requirements for competition, as outlined in FAR Part 6, fully apply to service contracts. The regulation allows flexibility in the method of competition, acknowledging that the approach may vary depending on the type of service being procured and is not restricted solely to price competition.
Key Rules
- Sealed Bidding Requirement
- Service contracts must use sealed bidding if the conditions in FAR 6.401(a) are satisfied, unless an exception in 6.401(b) or another statute applies.
- Full Application of Competition Requirements
- All statutory and FAR Part 6 competition requirements apply to service contracts, and agencies must ensure appropriate competition methods are used.
- Flexibility in Competition Methods
- The method of competition may be tailored to the type of service and is not limited to price-based competition alone.
Responsibilities
- Contracting Officers: Must determine if sealed bidding is appropriate, ensure compliance with FAR Part 6 competition requirements, and select the most suitable competition method for the service being acquired.
- Contractors: Must participate in competitive processes as required and understand that different evaluation criteria may be used beyond price.
- Agencies: Must oversee that service contracts are competed in accordance with statutory and regulatory requirements.
Practical Implications
- This section ensures that service contracts are subject to fair and open competition, promoting transparency and value for the government.
- Contracting professionals must carefully assess which competition method is appropriate for each service acquisition.
- Common pitfalls include failing to justify the use of methods other than sealed bidding or not adhering to FAR Part 6 requirements.