FAR 13.106-1—Soliciting competition.
Plain-English Summary
FAR 13.106-1 explains how contracting officers should solicit competition when using simplified acquisition procedures. It covers the factors the contracting officer must consider before requesting quotations or offers, how to tell vendors the basis for award, when best value and lowest-price technically acceptable approaches may be used, and special DoD/NASA/Coast Guard rules on excluding price or cost in certain multiple-award solicitations. It also addresses when a contracting officer may solicit from a single source, including brand-name and sole-source situations, and distinguishes between purchases at or below the simplified acquisition threshold and those above it. In addition, the section covers oral solicitations, when written or paper solicitations are required, the use of options, and how agencies should handle inquiries from vendors. In practice, this section is meant to help agencies get competition efficiently while still documenting the basis for limiting competition, choosing an award method, and using the most practical solicitation method for the dollar value and urgency of the buy.
Key Rules
Consider competition factors
Before requesting quotations or offers, the contracting officer must consider the nature of the item or service, market competitiveness, urgency, dollar value, and past pricing experience. The officer must also follow the general guidance in FAR 13.104 on promoting competition to the maximum extent practicable.
State award basis clearly
When soliciting quotations or offers, the contracting officer must tell vendors whether award will be based on price alone or on price plus other factors such as past performance and quality. Best value is encouraged, but the solicitation does not have to spell out the relative importance of each factor or include subfactors.
Special DoD multiple-award rule
For DoD, NASA, and the Coast Guard, a solicitation above the simplified acquisition threshold for multiple-award contracts for the same or similar services may omit price or cost as an evaluation factor if the Government intends to award to each qualifying offeror. Even then, price or cost must still be considered in the selection decision for each order placed under the contract, and the exception does not apply to certain 8(a) sole-source multiple-award solicitations.
Use LPTA carefully
Outside DoD, the contracting officer must ensure the criteria in FAR 15.101-2(c)(1)-(5) are met before using lowest-price technically acceptable source selection. Outside DoD, contracting officers are also directed to avoid using LPTA for certain supplies and services under FAR 15.101-2(d).
Single-source buys need support
For purchases at or below the simplified acquisition threshold, a contracting officer may solicit only one source if the circumstances show only one source is reasonably available, such as urgency, exclusive licensing, or brand-name/industrial mobilization needs. If only part of the purchase is brand-name, the justification applies only to that portion and should say so clearly.
Higher-value sole-source rules apply
For purchases above the simplified acquisition threshold, sole-source and brand-name commercial acquisitions under subpart 13.5 must meet the justification requirements in FAR 13.501(a). The brand-name justification or documentation must also be posted as required by FAR 5.102(a)(6).
Prefer oral solicitations when practical
The contracting officer should solicit quotations orally to the maximum extent practicable for acquisitions at or below the simplified acquisition threshold when oral solicitation is more efficient than available electronic commerce methods and public notice is not required. Oral solicitation is generally not practicable for actions over $25,000 unless an exception in FAR 5.202 applies.
Use written solicitations when needed
If electronic or oral quotations are uneconomical or impracticable, the contracting officer should use paper solicitations for actions likely to exceed $25,000. A written solicitation is required for construction requirements exceeding $2,000.
Options are allowed with limits
Options may be included if the requirements of FAR subpart 17.2 are met and the total value of the base acquisition plus all options stays within the simplified acquisition threshold for use of simplified acquisition procedures.
Respond to vendor inquiries
Agencies should answer inquiries received through any medium, including electronic commerce, so long as doing so does not disrupt the efficient conduct of the acquisition.
Responsibilities
Contracting Officer
Consider competition and market factors before soliciting; choose and disclose the award basis; decide whether best value, LPTA, or price-only is appropriate; document and justify any single-source or brand-name solicitation; use oral, electronic, or written solicitation methods as required; include options only when permitted; and respond to vendor inquiries without harming acquisition efficiency.
Agency
Support efficient solicitation methods, maintain processes for electronic commerce and public notice, and ensure inquiries from vendors are handled consistently and promptly when doing so will not interfere with the acquisition.
DoD, NASA, and Coast Guard Contracting Officials
Apply the special statutory rule allowing omission of price or cost as an evaluation factor in certain multiple-award solicitations above the simplified acquisition threshold, and still consider price or cost at the order level. They must also recognize that the exception does not apply to certain 8(a) sole-source multiple-award solicitations.
Vendors/Offerors
Respond to solicitations based on the stated award basis and provide quotations or offers that address the evaluation factors identified by the contracting officer.
Practical Implications
This section is about choosing the simplest solicitation method that still preserves fair competition and good documentation. A common mistake is treating simplified acquisition procedures as informal and skipping the required explanation of award basis or the justification for limiting competition.
Contracting officers should be careful to distinguish between the whole acquisition and a brand-name portion of it. If only part of the buy is brand-name, the sole-source rationale should be limited to that portion rather than overstating the restriction.
Oral solicitation is encouraged, but only when it is efficient and legally permissible. For actions over $25,000, or when public notice is required, relying on oral quotes can create compliance problems unless an exception applies.
The special DoD/NASA/Coast Guard rule on omitting price or cost from the initial award evaluation is narrow and does not eliminate price consideration entirely. Price still matters at the order level, and the exception cannot be used for certain 8(a) sole-source multiple-award situations.
Options can be useful in simplified acquisitions, but they can also push the total value over the threshold and make the procedure improper. Contracting officers should check the base plus options total before deciding to use FAR Part 13 procedures.
Official Regulatory Text
(a) Considerations. In soliciting competition, the contracting officer shall consider the guidance in 13.104 and the following before requesting quotations or offers: (1) (i) The nature of the article or service to be purchased and whether it is highly competitive and readily available in several makes or brands, or is relatively noncompetitive. (ii) An electronic commerce method that employs widespread electronic public notice is not available; and (iii) The urgency of the proposed purchase. (iv) The dollar value of the proposed purchase. (v) Past experience concerning specific dealers’ prices. (2) (i) When soliciting quotations or offers, the contracting officer shall notify potential quoters or offerors of the basis on which award will be made (price alone or price and other factors, e.g. , past performance and quality). (ii) Contracting officers are encouraged to use best value. (iii) Solicitations are not required to state the relative importance assigned to each evaluation factor and subfactor, nor are they required to include subfactors. (iv) In accordance with 10 U.S.C. 3206(c) , for DoD, NASA, and the Coast Guard— (A) The contracting officer may choose not to include price or cost as an evaluation factor for award when a solicitation— (1) Has an estimated value above the simplified acquisition threshold; (2) Will result in multiple-award contracts (see subpart 16.5 ) that are for the same or similar services; and (3) States that the Government intends to make an award to each and all qualifying offerors (see 2.101). (B) If the contracting officer chooses not to include price or cost as an evaluation factor for the contract award, in accordance with paragraph (a)(2)(iv)(A) of this section, the contracting officer shall consider price or cost as one of the factors in the selection decision for each order placed under the contract. (C) The exception in paragraph (a)(2)(iv)(A) of this section shall not apply to solicitations for multiple-award contracts that provide for sole source orders pursuant to section 8(a) of the Small Business Act ( 15 U.S.C. 637 (a)). (v) Except for DoD, contracting officers shall ensure the criteria at 15.101-2 (c)(1)-(5) are met when using the lowest price technically acceptable source selection process. (vi) Except for DoD, avoid using the lowest price technically acceptable source selection process to acquire certain supplies and services in accordance with 15.101-2 (d). (b) Soliciting from a single source. (1) For purchases not exceeding the simplified acquisition threshold. (i) Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available ( e.g. , urgency, exclusive licensing agreements, brand-name or industrial mobilization). (ii) Where a single source is identified to provide a portion of a purchase because that portion of the purchase specifies a particular brand-name item, the documentation in paragraph (b)(1)(i) of this section only applies to the portion of the purchase requiring the brand-name item. The documentation should state it is covering only the portion of the acquisition which is brand-name. (2) For purchases exceeding the simplified acquisition threshold . The requirements at 13.501 (a) apply to sole-source (including brand-name) acquisitions of commercial products and commercial services conducted pursuant to subpart 13.5 . (3) See 5.102 (a)(6) for the requirement to post the brand-name justification or documentation. (c) Soliciting orally. (1) The contracting officer shall solicit quotations orally to the maximum extent practicable, if- (i) The acquisition does not exceed the simplified acquisition threshold; (ii) Oral solicitation is more efficient than soliciting through available electronic commerce alternatives; and (iii) Notice is not required under 5.101 . (2) However, an oral solicitation may not be practicable for contract actions exceeding $25,000 unless covered by an exception in 5.202 . (d) Written solicitations. If obtaining electronic or oral quotations is uneconomical or impracticable, the contracting officer should issue paper solicitations for contract actions likely to exceed $25,000. The contracting officer shall issue a written solicitation for construction requirements exceeding $2,000. (e) Use of options. Options may be included in solicitations, provided the requirements of subpart 17.2 are met and the aggregate value of the acquisition and all options does not exceed the dollar threshold for use of simplified acquisition procedures. (f) Inquiries. An agency should respond to inquiries received through any medium (including electronic commerce) if doing so would not interfere with the efficient conduct of the acquisition.