FAR 13.106-2—Evaluation of quotations or offers.
Plain-English Summary
FAR 13.106-2 explains how contracting officers must evaluate quotations or offers under simplified acquisition procedures. It covers the core evaluation standards—impartiality, inclusion of transportation charges, and evaluation strictly on the basis stated in the solicitation—as well as the requirement to consider all quotations or offers. It also gives contracting officers broad discretion to use streamlined evaluation methods instead of the more formal procedures in FAR parts 14 and 15, including comparative evaluations, limited use of price and non-price factors, and practical approaches for assessing past performance without a formal database. The section also addresses telecommuting-related evaluation restrictions and permits efficient screening methods for electronically submitted quotations or offers. In practice, this rule is designed to keep simplified acquisitions fast and flexible while still preserving fairness, transparency, and a rational basis for award.
Key Rules
Impartial evaluation required
The contracting officer must evaluate quotations or offers in an impartial manner. This means the evaluation must be fair, unbiased, and consistent with the solicitation’s stated terms.
Transportation charges included
Evaluation must include transportation charges from the supplier’s shipping point to the delivery destination. This prevents an artificially low price from winning when delivery costs would make the total cost higher.
Evaluate on stated basis
Quotations or offers must be evaluated only on the basis established in the solicitation. The government cannot apply unstated criteria or change the evaluation method after receipt of quotes or offers.
All quotes considered
All quotations or offers must be considered, subject to the procedures in paragraph (b). The contracting officer cannot ignore a quotation simply because it is inconvenient to review or appears less attractive at first glance.
Broad discretion in procedures
The contracting officer has broad discretion to design suitable evaluation procedures for simplified acquisitions. The formal procedures in FAR parts 14 and 15 are not mandatory, and any one or more of those procedures may be used if the contracting officer chooses.
Telecommuting cannot be penalized
If telecommuting is not prohibited, agencies may not unfavorably evaluate an offer because it includes telecommuting unless the contracting officer makes a written determination under FAR 7.108(b). This protects offerors from being disadvantaged for offering remote work arrangements when they are otherwise allowed.
Efficient, minimally burdensome evaluation
When using price and other factors, the evaluation must be efficient and minimally burdensome. Formal evaluation plans, competitive ranges, discussions, and scoring are not required, and contracting offices may use comparative evaluations instead.
Past performance may be informal
Past performance evaluation does not require a formal database and may rely on the contracting officer’s knowledge and experience, customer surveys, questionnaire responses, CPARS, or any other reasonable basis. This allows practical use of available information without unnecessary administrative burden.
Streamlined electronic screening
For acquisitions allowing electronic responses, the contracting officer may first identify a suitable quotation and then quickly screen lower-priced quotations based on readily discernible value indicators such as past performance, warranty terms, and maintenance availability. If evaluation is based only on price and past performance, award may be made to the lowest-priced quotation with the highest possible past performance rating if it represents the best value compared with lower-priced alternatives.
Responsibilities
Contracting Officer
Evaluate quotations or offers impartially, include transportation charges, and use only the solicitation’s stated evaluation basis. Consider all quotations or offers, choose suitable streamlined procedures, avoid penalizing allowed telecommuting absent a written FAR 7.108(b) determination, and use reasonable methods for assessing past performance and best value.
Agency
Ensure its acquisition approach permits the contracting officer to use simplified, efficient evaluation methods and, where telecommuting is allowed, avoid policies or practices that would improperly disadvantage telecommuting offers without the required written determination.
Offerors/Quotors
Submit quotations or offers responsive to the solicitation’s stated evaluation factors and understand that price, transportation charges, past performance, warranty, maintenance, and similar value indicators may be considered under streamlined procedures.
Practical Implications
This section gives contracting officers flexibility, but not freedom to improvise unfairly; the evaluation still has to match the solicitation and be defensible.
Transportation costs can change the apparent low price, so contractors should pay attention to shipping terms and delivery location assumptions.
Past performance can be evaluated using practical sources, so contractors should expect CPARS, customer feedback, and the CO’s prior experience to matter even without a formal database.
Telecommuting-related staffing approaches should not be discounted unless the agency has made the required written determination, so offerors should document how remote work supports performance.
Because formal scoring, competitive ranges, and discussions are not required, contractors should submit their strongest quotation the first time and not assume they will get a chance to revise it.
Official Regulatory Text
(a) General. (1) The contracting officer shall evaluate quotations or offers- (i) In an impartial manner; and (ii) Inclusive of transportation charges from the shipping point of the supplier to the delivery destination. (2) Quotations or offers shall be evaluated on the basis established in the solicitation. (3) All quotations or offers shall be considered (see paragraph (b) of this subsection). (b) Evaluation procedures. (1) The contracting officer has broad discretion in fashioning suitable evaluation procedures. The procedures prescribed in parts 14 and 15 are not mandatory. At the contracting officer’s discretion, one or more, but not necessarily all, of the evaluation procedures in part 14 or 15 may be used. (2) If telecommuting is not prohibited, agencies shall not unfavorably evaluate an offer because it includes telecommuting unless the contracting officer executes a written determination in accordance with FAR 7.108 (b). (3) If using price and other factors, ensure that quotations or offers can be evaluated in an efficient and minimally burdensome fashion. Formal evaluation plans and establishing a competitive range, conducting discussions, and scoring quotations or offers are not required. Contracting offices may conduct comparative evaluations of offers. Evaluation of other factors, such as past performance- (i) Does not require the creation or existence of a formal data base; and (ii) May be based on one or more of the following: (A) The contracting officer’s knowledge of and previous experience with the supply or service being acquired; (B) Customer surveys, and past performance questionnaire replies; (C) The Contractor Performance Assessment Reporting System (CPARS) at https://www.cpars.gov ; or (D) Any other reasonable basis. (4) For acquisitions conducted using a method that permits electronic response to the solicitation, the contracting officer may- (i) After preliminary consideration of all quotations or offers, identify from all quotations or offers received one that is suitable to the user, such as the lowest priced brand name product, and quickly screen all lower priced quotations or offers based on readily discernible value indicators, such as past performance, warranty conditions, and maintenance availability; or (ii) Where an evaluation is based only on price and past performance, make an award based on whether the lowest priced of the quotations or offers having the highest past performance rating possible represents the best value when compared to any lower priced quotation or offer.