Overview
FAR Part 15 outlines the policies and procedures for negotiated acquisitions, covering both competitive and sole-source environments. It establishes the "Best Value Continuum," allowing the government to award contracts based on either a tradeoff between price and technical factors or the lowest price technically acceptable (LPTA) approach.
Key Rules
- Best Value Continuum: Agencies must choose a source selection process (Tradeoff or LPTA) based on the complexity of the requirement and performance risk.
- Tradeoff Process: Permits the government to accept a higher-priced proposal if the perceived technical benefits justify the additional cost; relative importance of all evaluation factors must be clearly stated in the solicitation.
- LPTA Restrictions: Following the 2019 NDAA, the LPTA process is restricted for complex services (e.g., IT, cybersecurity, healthcare, systems engineering) to avoid sacrificing quality for the lowest price.
- Uniform Contract Format (UCF): Negotiated contracts must generally follow a standardized 13-section structure (Sections A through M) to ensure consistency and ease of use.
- Oral Presentations: These may be used to streamline the process, but they must be recorded, and any material terms discussed must be subsequently reduced to writing.
- Industry Exchanges: Early communication (RFIs, industry days, draft RFPs) is encouraged to improve requirement clarity, provided it does not create an unfair competitive advantage.
Responsibilities
- Contracting Officer (CO):
- Serves as the primary focal point for all exchanges with potential offerors after the solicitation is released.
- Determines and justifies the use of the LPTA process in the contract file.
- Ensures procurement integrity and manages the receipt and handling of proposals.
- Source Selection Authority (SSA):
- Holds the discretion to determine the method and level of detail for recording oral presentations.
- Makes the final selection of the proposal representing the best value to the government.
- Program Manager/Technical Team:
- Collaborates with the CO during early industry exchanges to refine requirements.
- Develops technical evaluation factors and significant subfactors.
- Offerors:
- Must submit proposals that meet the "acceptability" standards and address all evaluation factors.
- Responsible for the accuracy of representations and certifications.
Practical Implications
FAR Part 15 provides the most flexible yet complex framework for federal procurement. In real-world scenarios, the shift away from LPTA for "knowledge-based professional services" means contractors must focus more on demonstrating superior technical capability and past performance rather than just cutting costs. For the government, the emphasis on early industry exchanges (Subpart 15.2) means that "Market Research" is not just a checkbox, but a strategic phase where draft RFPs can be used to "pre-test" the feasibility of a Statement of Work before a formal commitment is made. Furthermore, the strict definitions of "Deficiency" and "Weakness" mean that contractors must be meticulous in proposal writing, as a single material failure (Deficiency) can immediately render a proposal ineligible for award.