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section37.105

Competition in service contracting

Overview

This section mandates that service contracts be awarded through full and open competition in accordance with FAR Part 6 and establishes sealed bidding as the required method when specific conditions are met.

Key Rules

  • Mandatory Sealed Bidding: Contracts for services must be awarded through sealed bidding if the conditions in FAR 6.401(a) are met, unless statutory exceptions apply.
  • Full Competition Requirement: All statutory requirements and FAR Part 6 regulations regarding competition apply to service contracts.
  • Flexible Competitive Methods: The method used to achieve competition can vary based on the nature of the service and is not restricted to price-based competition alone.

Practical Implications

  • Contracting officers must justify the use of negotiated procurement (FAR Part 15) if the criteria for sealed bidding are met, though complex services often allow for "best value" trade-offs where quality is considered alongside price.
  • Agencies have the latitude to weigh technical expertise and performance history more heavily than cost when the service requirements are not purely objective or standardized.

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