FAR 17.803—Applicability.
Plain-English Summary
FAR 17.803 tells contracting personnel when reverse auction procedures may not be used. It covers four specific categories of prohibited use: design-build construction contracts, architect-engineer services subject to 40 U.S.C. chapter 11, procurements conducted under sealed bidding procedures, and acquisitions of personal protective equipment (PPE) covered by specified NDAA restrictions. The section exists to prevent agencies from using reverse auctions in situations where the acquisition method is legally incompatible, where professional qualifications and selection criteria matter more than price competition, or where Congress has imposed special limits on buying PPE. In practice, this means the contracting officer must screen the acquisition strategy before deciding to use a reverse auction and must instead use the proper FAR part or statutory process for the requirement. The rule is a negative applicability provision: it does not authorize reverse auctions generally, but identifies important exceptions where they are off-limits. For contractors, it signals that some federal requirements will not be competed through a reverse-auction format even if the market might otherwise support it.
Key Rules
No reverse auctions for design-build
Reverse auction processes may not be used for design-build construction contracts. These acquisitions are governed by construction-specific rules, including the design-build framework in FAR 36.104, rather than by reverse-auction price competition.
No reverse auctions for A-E services
Procurements for architect-engineer services subject to 40 U.S.C. chapter 11 are excluded. Because A-E selections are based on qualifications and professional competence under FAR 36.601 and related procedures, reverse auctions are not appropriate.
No reverse auctions under sealed bidding
If the acquisition will use sealed bidding procedures under FAR part 14, reverse auctions are not allowed. Sealed bidding is a separate source-selection method with its own formal bid-opening and award rules.
No reverse auctions for covered PPE
Reverse auctions may not be used to acquire personal protective equipment when the purchase falls under the cited NDAA restrictions. The prohibition reflects specific statutory limits in the FY 2017, FY 2018, and FY 2019 defense authorization acts.
Check the acquisition method first
Before planning a reverse auction, the contracting officer must confirm that the requirement is not one of the excluded categories. The applicability decision should be made early in acquisition planning, before solicitation strategy is finalized.
Responsibilities
Contracting Officer
Determine whether the requirement falls into any prohibited category before selecting a reverse auction. Use the correct FAR part or statutory procedure instead of a reverse auction when the acquisition is design-build construction, architect-engineer services, sealed bidding, or covered PPE.
Acquisition Planning Team
Identify the nature of the requirement early and flag any legal or procedural restrictions on reverse auctions. Ensure the acquisition strategy aligns with the applicable FAR part, statutory selection method, and agency policy.
Agency
Train personnel and establish internal controls so reverse auctions are not used where prohibited. Ensure compliance with the cited FAR provisions and NDAA restrictions when developing procurement policies and templates.
Contractor
Recognize that some federal requirements will be competed under other methods and not through reverse auctions. When responding to solicitations, follow the stated procurement method and do not assume a reverse auction will be used for these categories.
Practical Implications
This section is a gatekeeper rule: if the requirement fits one of the listed categories, reverse auction is off the table. The contracting officer should make that determination before investing time in auction planning or vendor outreach.
A common pitfall is treating reverse auctions as a general price-competition tool for any buy. That can lead to using the wrong source-selection method, which may create protest risk or require cancellation and re-solicitation.
Design-build and architect-engineer work are especially important exclusions because those acquisitions depend on technical qualifications, design integration, and statutory selection procedures, not just lowest price.
For PPE, the contracting team must check the specific statutory restrictions cited in the FAR, because the prohibition is tied to congressional limits and may apply even when the market seems suitable for an auction format.
If a procurement is already set for sealed bidding, reverse auction should not be layered on as an alternative. The team should choose one lawful method and follow its rules consistently.
Official Regulatory Text
Reverse auction processes shall not be used for— (a) Design-build construction contracts (see 36.104 ); (b) Procurements for architect-engineer services subject to 40 U.S.C. chapter 11 (see 36.601); (c) Procurements using sealed bidding procedures (see part 14); or (d) Acquisition of personal protective equipment, in accordance with— (1) Sections 813 and 814 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017 ( Pub. L. 114-328 ); (2) Section 882 of the NDAA for FY 2018 ( Pub. L. 115-91 ); and (3) Section 880 of the John S. McCain NDAA for FY 2019 ( Pub. L. 115-232 , 41 U.S.C. 3701 note ).