FAR 52.207-1—Notice of Standard Competition.
Plain-English Summary
FAR 52.207-1 is a solicitation provision used when an acquisition is being conducted as a standard competition under OMB Circular A-76. It tells offerors that the government is comparing three possible sources of performance: private sector offers, the agency tender, and any public reimbursable tenders. The provision also explains that the competition will end in a performance decision that is publicly announced, and that the outcome determines whether the work is awarded to a contractor or retained/performed by the government through a Most Efficient Organization (MEO) letter of obligation or a fee-for-service agreement. It further addresses the contest process for directly interested parties under FAR 33.103 and limits access to sensitive competition documents—specifically the certified standard competition form, the agency tender, and public reimbursable tenders—until the contest period ends or any contest is resolved. In practice, this provision is important because it alerts all participants that the procurement is not a normal source-selection exercise; it is a formal A-76 competition with special evaluation, announcement, and protest/contest rules that affect transparency, document access, and the ultimate performance arrangement.
Key Rules
A-76 standard competition notice
The solicitation must state that the acquisition is part of a standard competition under OMB Circular A-76. This signals that the government is deciding whether the work will be performed by a contractor or by government personnel.
Multiple performance sources evaluated
The government will evaluate private sector offers, the agency tender, and any public reimbursable tenders in accordance with the solicitation and the Circular. The provision makes clear that all of these submissions are part of the same competition framework.
Public performance decision
The resulting performance decision must be publicly announced as required by the Circular. The announcement is the formal outcome of the competition and determines the next step for performance of the work.
Contract or government performance outcome
If the private sector offer wins, the contracting officer awards a contract. If the agency tender or a public reimbursable tender wins, the contracting officer must establish the appropriate government-performance arrangement: an MEO letter of obligation or a fee-for-service agreement.
Contest rights under FAR 33.103
Directly interested parties may file contests under the procedures in FAR 33.103, as incorporated by the Circular. This gives affected parties a formal avenue to challenge the competition outcome or process.
Restricted access to competition documents
Until the contest period expires or any contest is resolved, only legal agents for directly interested parties may access the certified standard competition form, the agency tender, and public reimbursable tenders. This protects sensitive source-selection and government-performance information during the dispute window.
Responsibilities
Contracting Officer
Include this provision in applicable solicitations, conduct the competition in accordance with the solicitation and OMB Circular A-76, announce the performance decision publicly, award the contract if the private sector offer wins, and establish the MEO letter of obligation or fee-for-service agreement if government performance wins.
Agency
Prepare and submit the agency tender, participate in the standard competition process, and implement the performance decision if the work is retained in-house or performed through a public reimbursable arrangement.
Private Sector Offeror
Submit a private sector offer in response to the solicitation and, if directly interested, use the contest procedures in FAR 33.103 to challenge the competition when appropriate.
Public Reimbursable Tenderer
Submit a public reimbursable tender when permitted by the Circular and, if directly interested, participate in any contest process through its legal agent.
Directly Interested Parties
File contests only under the procedures allowed by FAR 33.103 and the Circular, and use legal agents to access protected competition documents during the contest period.
Legal Agent
Represent directly interested parties for purposes of accessing the certified standard competition form, agency tender, and public reimbursable tenders while a contest is pending or until the contest period ends.
Practical Implications
This provision tells contractors that the competition is not just about price and technical merit; it is also about whether the government can perform the work more efficiently in-house under A-76 rules.
Offerors should expect special document-access restrictions, especially during the contest window, so they should plan for limited visibility into the agency tender and related government submissions.
Contracting officers must be careful to follow the Circular and FAR 33.103 contest procedures exactly, because errors can delay the performance decision or create grounds for challenge.
If the government wins the competition, there is no contract award; instead, the agency must implement the MEO or fee-for-service structure, which changes post-decision administration significantly.
Parties should watch the timing of contests closely, because access to key documents and the ability to challenge the outcome depend on whether the contest period has expired or been resolved.
Official Regulatory Text
As prescribed in 7.305 (a) , insert the following provision: Notice of Standard Competition (May 2006) (a) This solicitation is part of a standard competition under Office of Management and Budget Circular No. A-76 (Revised), Performance of Commercial Activities, dated May 29, 2003 (hereafter "the Circular"), to determine whether to accomplish the specified work under contract or by Government performance. (b) The Government will evaluate private sector offers, the agency tender, and public reimbursable tenders, as provided in this solicitation and the Circular. (c) A performance decision resulting from this standard competition will be publicly announced in accordance with the Circular. If the performance decision favors a private sector offeror, a contract will be awarded. If the performance decision favors an agency or a public reimbursable tender, the Contracting Officer shall establish, respectively, either a Most Efficient Organization letter of obligation or a fee-for-service agreement, as those terms are defined in the Circular. (d) As provided in the Circular, directly interested parties may file contests, which are governed by the procedures in Federal Acquisition Regulation 33.103 . Until resolution of any contest, or the expiration of the time for filing a contest, only legal agents for directly interested parties shall have access to the certified standard competition form, the agency tender, and public reimbursable tenders. (End of provision)