FAR 13.104—Promoting competition.
Plain-English Summary
FAR 13.104 explains the competition standard that applies when using simplified acquisition procedures. It requires the contracting officer to seek competition to the maximum extent practicable so the Government can obtain the most advantageous source, while still considering the administrative cost of the purchase. The section also prohibits two common anti-competitive practices: choosing sources based on personal preference and limiting solicitations to well-known or widely distributed brands. For simplified acquisitions not posted through the Governmentwide point of entry (GPE), it gives practical guidance on how to achieve adequate competition, including using local trade-area sources, ordinarily soliciting at least three sources when synopsis is required and no exception applies, and, when practicable, seeking two sources not used in the prior solicitation. Finally, it points readers to subpart 17.8 for reverse auctions, signaling that competition rules also apply in that context. In practice, this section is about balancing speed and simplicity with fair market access and reasonable competition.
Key Rules
Maximize competition
The contracting officer must promote competition to the maximum extent practicable. The goal is to obtain supplies and services from the source whose offer is most advantageous to the Government, while also considering the administrative cost of the purchase.
No personal preference
The contracting officer must not solicit quotations based on personal preference. Source selection must be objective and tied to the Government’s needs, not to favored vendors or informal preferences.
No brand-only restriction
The contracting officer must not restrict solicitation to suppliers of well-known and widely distributed makes or brands. Competition should not be artificially narrowed to preferred brands unless the requirement itself justifies that limitation under applicable acquisition rules.
Local trade-area sourcing
If simplified acquisition procedures are used and the notice of proposed contract action and solicitation information are not posted through the GPE, maximum practicable competition ordinarily can be obtained by soliciting quotations or offers from sources within the local trade area.
Three-source benchmark
Unless the action requires synopsis under 5.101 and no exception under 5.202 applies, the contracting officer should consider soliciting at least three sources to promote competition to the maximum extent practicable. This is a practical benchmark, not an absolute rule in every case.
Rotate sources when practicable
Whenever practicable, the contracting officer should request quotations or offers from two sources not included in the previous solicitation. This helps broaden market access and avoid repeatedly favoring the same vendors.
Reverse auction reference
When conducting a reverse auction, the contracting officer must follow subpart 17.8. This section does not replace reverse-auction requirements; it directs the reader to the separate rules that govern that method.
Responsibilities
Contracting Officer
Promote competition to the maximum extent practicable, choose the most advantageous source considering administrative cost, avoid personal preference and brand-only restrictions, and use practical methods such as local trade-area solicitation, at least three sources when appropriate, and rotating sources when feasible.
Agency/Acquisition Team
Support market research and solicitation planning that broaden competition, help identify qualified sources, and ensure simplified acquisition practices do not unnecessarily limit vendor participation.
Contractor/Offeror
Respond to solicitations when invited, especially in local trade-area or rotating-source outreach, and compete on the basis of the stated requirement rather than expecting brand preference or incumbent advantage.
Contracting Activity
Ensure procurement practices and templates support fair competition, proper synopsis decisions, and compliance with GPE posting and reverse-auction requirements where applicable.
Practical Implications
This section is a reminder that simplified acquisition does not mean no competition; the contracting officer still has to make a real effort to reach multiple sources.
A common pitfall is over-relying on the same vendors or an incumbent without documenting why broader competition was not practicable.
Another risk is using brand names or personal familiarity as a shortcut, which can create protest risk and undermine the fairness of the acquisition.
If the action is not posted through the GPE, the contracting officer should think carefully about local market sources and whether at least three sources can reasonably be contacted.
When using reverse auctions, the officer must not assume FAR 13.104 is the only competition rule; subpart 17.8 adds additional procedural requirements.
Official Regulatory Text
The contracting officer must promote competition to the maximum extent practicable to obtain supplies and services from the source whose offer is the most advantageous to the Government, considering the administrative cost of the purchase. (a) The contracting officer must not- (1) Solicit quotations based on personal preference; or (2) Restrict solicitation to suppliers of well-known and widely distributed makes or brands. (b) If using simplified acquisition procedures and not providing access to the notice of proposed contract action and solicitation information through the Governmentwide point of entry (GPE), maximum practicable competition ordinarily can be obtained by soliciting quotations or offers from sources within the local trade area. Unless the contract action requires synopsis pursuant to 5.101 and an exception under 5.202 is not applicable, consider solicitation of at least three sources to promote competition to the maximum extent practicable. Whenever practicable, request quotations or offers from two sources not included in the previous solicitation. (c) When conducting a reverse auction, see subpart 17.8 .