FAR Part 6 Flashcards
Competition Requirements
Competition Requirements
Full and Open Competition
Full and Open Competition After Exclusion of Sources
Other Than Full and Open Competition
Sealed Bidding and Competitive Proposals
Advocates for Competition
6.1 Full and Open Competition
Scope of Subpart (FAR 6.100):
This subpart prescribes the policy and procedures used to promote and provide for
full and open competition.
6.1 Full and Open Competition
Policy (FAR 6.101):
10 U.S.C .3201 and 41 U.S.C .3301: Require contracting officers to promote and provide for full and open competition in soliciting offers and awarding Government contracts.
Contracting Officers’ Role: Ensure competitive procedures best suited to the circumstances of the contract action are used.
6.1 Full and Open Competition
Use of Competitive Procedures (FAR 6.102):
SealedBids(FAR6.102(a)):SeeFAR6.401(a).(upcoming slide)
CompetitiveProposals(FAR6.102(b)):SeeFAR6.401(b).(upcoming slide)
Combination of Competitive Procedures (FAR6.102(c)):Use a combination if sealed bids are not appropriate.
Other Competitive Procedures (FAR6.102(d)):
Architect-engineer contracts
Basic and applied research
Multiple award schedules
Part 6 - Competition Requirements
6.1 Full and Open Competition
Architect-Engineer Contracts:
Selection Process: The selection of sources for architect-engineer contracts is governed by the provisions of 40 U.S.C. 1102 et seq. This process involves a
competitive procedure that focuses on the qualifications of the firms rather than price.
Procedure: See FAR Subpart 36.6 for detailed procedures on the selection of architect-engineer firms. The process includes public announcements of
requirements, evaluation of qualifications, and negotiation of contracts based on the most highly qualified firms.
Part 6 - Competition Requirements
6.1 Full and Open Competition
Basic and Applied Research:
Competitive Selection: Basic and applied research, as well as development not related to a specific system or hardware procurement, can be conducted using
competitive procedures if the award results from a broad agency announcement.
Broad Agency Announcements (BAA):
General Nature: A BAA identifies areas of research interest, including criteria for selecting proposals and soliciting participation from capable offerors.
Peer or Scientific Review: Proposals received in response to a BAA are subject to peer or scientific review to determine their merit and relevance to the government’s needs.
Part 6 - Competition Requirements
6.1 Full and Open Competition
Multiple Award Schedules:
GSA Schedules: The use of multiple award schedules issued under the procedures established by the General Services Administration (GSA) is
considered a competitive procedure.
Statutory Requirement: This is consistent with the requirement of 41 U.S.C. 152(3)(A) for the multiple award schedule program. The program allows the government to obtain commercial products and services at competitive prices by leveraging the buying power of the federal government.
Part 6 - Competition Requirements
6.2 Full and Open Competition After Exclusion of Sources
Scope of Subpart (FAR 6.200):
This subpart prescribes policies and procedures for providing full and open competition after excluding one or more sources.
Part 6 - Competition Requirements
6.2 Full and Open Competition After Exclusion of Sources
Policy (FAR 6.201):
Acquisitions under this subpart require the use of competitive procedures prescribed in FAR 6.102.
Part 6 - Competition Requirements
6.2 Full and Open Competition After Exclusion of Sources
Establishing or Maintaining Alternative Sources (FAR 6.202):
Reasons to Exclude Sources:
Increase or maintain competition and reduce costs
National defense interests
Essential engineering, research, or development capability
Reliable source availability
High demand history
Critical medical, safety, or emergency supplies
Documentation (FAR 6.202(b)):
o A determination and findings (D&F) is required, signed by the agency head or designee.
Part 6 - Competition Requirements
6.3 Other Than Full and Open Competition
Scope of Subpart (FAR 6.300):
Prescribes policies and procedures for contracting without full and open competition.
Part 6 - Competition Requirements
6.3 Other Than Full and Open Competition
Policy (FAR 6.301):
Authority(41U.S.C.3304and10U.S.C.3204):Allowscontractingwithoutfulland
open competition under specific conditions.
Requirements:
* Contracts must cite specific authority.
* Justifications must not be due to lack of planning or funding concerns.
Circumstances Permitting Other Than Full and Open Competition (FAR 6.302):
OnlyOneResponsibleSource(FAR6.302-1)
Unusual and Compelling Urgency (FAR6.302-2)
Industrial Mobilization, Engineering, Developmental, or Research Capability; Expert Services (FAR 6.302-3)
International Agreement(FAR6.302-4)
Authorized or Required by Statute( FAR6.302-5)
National Security(FAR6.302-6)
Public Interest(FAR6.302-7)
Sealed Bidding (FAR 6.401(a)):
*Conditions for Use:
* Time permits solicitation, submission, and evaluation of bids.
* Award based on price and price-related factors.
* No need for discussions.
* Expectation of receiving more than one sealed bid.
Procedures:SeeFARPart14.(Covered today)
Slide2CompetitiveProposals(FAR6.401(b)) :Conditions for Use: Sealed bids are not appropriate.Necessary to conduct discussions with offerors. Procedures: See FAR Part 15.International Contracts: Typically use competitive proposals due to differences in laws and business practices.
Competitive Proposals (FAR 6.401(b)):
*Conditions for Use:
Sealed bids are not appropriate.
Necessary to conduct discussions with offerors.
Procedures:SeeFARPart15. (covered in future class)
International Contracts: Typically use competitive proposals due to differences in laws and business practices.
6.5 Advocates for Competition
Requirement (FAR 6.501):
Designation: Each executive agency must designate an advocate for competition.
Position Requirements:
* Must be separate from the senior procurement executive.
* No conflicting duties or responsibilities.
6.5 Advocates for Competition
Duties and Responsibilities (FAR 6.502):
Promote Commercial Products and Services:
Promote full and open competition.
Challenge non-competitive requirements.
Annual Reports:
Identify opportunities for commercial products and services.
Report on actions taken to promote competition.
Recommend goals and plans for increasing competition.
System of Accountability: Recommend personal and organizational accountability for promoting competition.
Competition Requirements
Part 6 prescribes policies and procedures for full and open competition, full and open competition
after exclusion of sources, and other than full and open competition.
Competition Requirements
No agency shall contract for supplies or services from another agency for the purpose of avoiding
the requirements of this part.
What Is Full and Open Competition?
Contracting officers shall promote and provide for full
and open competition in soliciting offers and awarding government contracts.
The contracting officer shall do this through the use of
competitive procedures best suited to the specific contract action and consistent with the agency’s needs.
Full and open competition
When used with respect to a contract action, the process by which all responsible sources are permitted to compete
Responsible Prospective Contractor
A seller which has been found to be capable party that has the financial resources, personnel, facilities, integrity, and overall capability to
fulfill specifice contractual requirements satisfactorily
When Is Full and Ope n Competition Not Required?
When the contract has been awarded using
the simplified acquisition procedures of Part 13.
When the contract has been awarded using contracting procedures (other than those addressed ni this part) that are expressly authorized by statute.
In contract modifications, including the exercise of priced options that were evaluated as part of the initial
competition, that are within the scope and under the terms of an existing contract.
In orders placed under requirements contracts or definite-quantity contracts.
In orders placed under indefinite-quantity contracts that were entered into pursuant to this part when:
* The contract was awarded under Subpart 6.1 or 6.2 and all responsible sources were realistically permitted to compete for the requirements contained in the order, or
* The contract was awarded under Subpart 6.3 and the
required justification and approval adequately covers the requirements contained in the order.
In orders placed under indefinite-quantity contracts that were entered into pursuant to this part when:
* The contract was awarded under Subpart 6.1 or 6.2 and all responsible sources were realistically permitted to compete for the requirements contained in the order, or
* The contract was awarded under Subpart 6.3 and the
required justification and approval adequately covers the requirements contained in the order.
If the order was placed against task order and delivery order contracts entered into pursuant to subpart 16.5
Full and Open Competition After Exclusion of Sources
Agencies may exclude sources fi the agency head determines that their exclusion would:
Increase or maintain competition and be likely to reduce
overall costs,
Be in the interest of national defense,
Ensure the continued availability of required supplies or
services,
Satisfy projected needs based on a history of high demand, or
Satisfy a critical need for emergency supplies
Contract Set-asides for Certain Classes of Business Concerns
Contracting officers may set aside contracts for these classes of business concerns. No separate justification or D&F is required
To fulfill the statutory requirements relating to small business concerns, contracting officers may set aside solicitations to allow only such business concerns to compete.
To fulfill the statutory requirements relating to section 8(a) of the Small Business Act, contracting officers may limit competition to eligible 8a contractors
To fulfill the statutory requirements relating to the HUBZone Act of 1997, contracting officers in participating agencies may set aside solicitations to allow only qualified HUBZone small business concerns to
To fulfill the statutory requirements relating to the Veterans Benefits Act of 2003, contracting officers may set aside solicitations to allow only service-disabled veteran-owned small businesses to compete.
To fulfill the statutory requirements relating to 15 U.S.C. 637(m), COs may set aside solicitations for only economically disadvantaged women-owned small business or women-owned small business concerns eligible under the WOSB program.
To fulfill the statutory requirements relating to the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, COs may set aside solicitations to allow only offerors residing or doing business primarily in the area affected by a major disaster or emergency to compete.
Circumstances Permitting Other Than Full and Open Competition
There are seven exceptions to full and open competition:
USC 41
Only one responsiible source
Unusual and compelling urgency
Industrial mobilization
International agreement
Source authorized or required by statute
National security
Public interest
The contracting officer must provide full and open competition unless
it is justified in writing, the accuracy and completeness of the justification are certified
and the appropriate level of approval is obtained
The justification for other than full and open competition shall be approved in writing.
The contracting officer may only give this approval for contracts not exceeding $750,000
The justification for other than full and open competition
exceeding $750,000 shall be approved in writing as follows:
Contracts exceeding $750,000 but less than $15 million are approved by the competition advocate.
Refer to the FAR for the thresholds approving authority for contracts exceeding $15 million
Contracts exceeding this amount must be approved by the senior procurement executive of the agency.
The agency shall make publicly available the justifications required by this part.
Sealed bidding
An acquisition method in which the government issues an invitation for bids (IFB)
Bids are enclosed in a glued (sealed) envelope and submitted in response to an invitation for bids. Sealed bids received up to the deadline date are generally opened at a stated time and place
Award is made to that responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the government considering only price and price-related factors included in the invitation
Competitive proposal
A competitive procurement practice in government purchasing that:
Is initiated by a request for proposal,
Contemplates the submission of timely proposals by the maximum number of
possible suppliers,
Permits discussions with those suppliers found to be within the competitive
range, and
Concludes with the award of a contract to the one supplier whose proposal is
most advantageous to the government (considering price and the other factors included in the solicitation)
Sealed Bidding and Competitive Proposals
Sealed bids
There is sufficient time to conduct the sealed-bidding process
The award will be made on the basis of price and price-related factors
It is not necessary to conduct discussions
There is a reasonable expectation of receiving more than one sealed bid
Competitive proposals
Used when sealed bidding cannot be used
The Competition Advocate
The head of each executive agency shall designate a
competition advocate for the agency and for each procuring activity of the agency. Competition advocates are responsible for:
Promoting the acquisition of commercial items
Promoting full and open competition
Challenging requirements not stated in terms of functions to be performed, performance required, or essential physical characteristics
Challenging barriers to the acquisition of commercial items and full and open competition
FAR PART 6. COMPETITION
REQUIREMENTS
This part applies to all acquisitions except
- Contracts awarded using the simplified acquisition procedures (SAP) of part 13;
- Contracts awarded using contracting procedures (other than those addressed in this part) that are expressly authorized by statute;
- Contract modifications, including the exercise of priced options that were evaluated as part of the initial competition, that are within the scope and under the terms of an existing contract;
- Orders placed under requirements contracts or definite-quantity contracts;
- Orders placed under indefinite-quantity contracts that were entered into pursuant to this part when
a. The contract was awarded under subpart 6.1 or 6.2 and all responsible sources were realistically permitted to compete for the requirements contained on the order; or
b. The contract was awarded under subpart
6.3. and the required justification and approval adequately covers the requirements contained in the order; or
Orders placed against task order and deliver order contracts entered into pursuant to subpart 16.5.
Full and open competition is the process by which all responsible sources are allowed to compete. Contracting officers are required, with certain limited exceptions (see FAR 6.2 and 6.3), to promote and provide for full and open competition in soliciting offers and awarding government contracts.
Competitive procedures
available for use in fulfilling the requirement for full and open competition
are sealed bids,
competitive proposals,
combination of competitive procedures (e.g., two-step sealed bidding),
and other competitive procedures (e.g., selection of sources for architect-engineer contracts).
ESTABLISHING OR MAINTAINING ALTERNATIVE SOURCES: Agencies may exclude sources if the agency head determines that to do so
would increase or maintain competition and
likely result in reduced overall costs;
would be in the interest of national defense;
would ensure the continuous availability of a reliable source of supplies or services;
would satisfy projected needs based on a history of high demand;
or satisfy a critical need for medical, safety, or emergency supplies.
Every proposed contract action that falls under this provision must be supported by a D&F signed by the head of the agency or designee and not made on a class basis.
SET-ASIDES FOR SMALL BUSINESS CONCERNS: To fulfill the statutory requirements relating to small business concerns, contracting
officers may set aside solicitations to allow only such business concerns to compete.
No separate justification or D&F is required under this part to set aside a contract action for small business concerns.
SECTION 8(A) COMPETITION: To fulfill the statutory requirements relating to section 8(a) of the Small Business Act, contracting officers may limit competition to eligible 8(a)
SET-ASIDES FOR HUBZONE SMALL BUSINESS CONCERNS: To fulfill the statutory requirements relating to the HUBZone Act of 1997, contracting officers in participating agencies
may set aside solicitations to allow only qualified HUBZone small business concerns to compete.
No separate justification or D&F is required under this part to set aside a contract action for qualified HUBZone small business concerns. (FAR
SET-ASIDES FOR SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS CONCERNS: To fulfill the statutory requirements relating to the Veterans Benefits Act of 2003, contracting officers
may set aside solicitations to allow only service-disabled veteran-owned small businesses to compete.
No separate justification or D&F is required under this part to set aside a contract
SET-ASIDES FOR ECONOMICALLY DISADVANTAGED WOMEN-OWNED SMALL BUSINESS (EDWOSB) CONCERNS OR WOMEN-OWNED SMALL BUSINESS (WOSB) CONCERNS: To fulfill the statutory requirements relating to 15 U.S.C. 637(m), contracting officers
may set aside solicitations for only EDWOSB or WOSB concerns eligible under the WOSB program.
No separate justification or D&F is required under this part to set aside a contract action for EDWOSB concerns or WOSB concerns eligible under the WOSB program. (FAR
6.207)
SET-ASIDES FOR LOCAL FIRMS DURING A MAJOR DISASTER OR EMERGENCY: To fulfill the statutory requirements relating to the Robert T. Stafford Disaster Relief and Emergency Assistance Act, contracting
officers may set aside solicitations to allow only offerors residing or doing business primarily in the area affected by such major disaster or emergency to compete.
No separate justification or D&F is required
“Major disaster or emergency area”
means the area included in the official presidential declarations)
and any additional areas identified by the Department of Homeland Security.
D. OTHER THAN FULL AND OPEN
COMPETITION (FAR 6.3)
Both 41 U.S.C. 253(c) and 10 U.S.C. 2304(c) authorize, under certain conditions, contracting without providing for full and open competition.
There are seven exceptions to full and open competition:
- Only one responsible source,
- Unusual and compelling urgency,
- Industrial mobilization,
- International agreement,
- Source authorized or required by statute,
- National security, and
- Public interest.
The approval thresholds for a justification for other than full and open competition shall be in writing, refer to FAR 6.304 (a) for current thresholds. The agency shall make publicly available the justifications required by this
Sealed bids are appropriate
when time permits;
award will be made on the basis of price and other price-related factors,
no discussions are required,
and when there is reasonable expectation of receiving more than one bid
Competitive proposals are appropriate
when sealed bids are not.
Sealed bidding and competitive proposals are both
acceptable procedures for use under full and open competition and full and open competition after exclusion of sources.
Agency and procuring activity competition advocates are responsible
promoting the acquisition of commercial items;
promoting full and open competition;
challenging requirements that are not stated in terms of functions to be performed;
performance required or essential physical characteristics;
and challenging barriers to the acquisition of commercial items and full and open competition, such as unnecessarily restrictive statements of work, unnecessarily detailed specifications, and unnecessarily burdensome contract clauses.
