FAR Part 15: Contracting by Negotiation

In plain English

FAR Part 15 governs negotiated acquisitions, which are contracts awarded using methods other than sealed bidding. It covers the entire process from acquisition planning and solicitation through evaluation, award, and debriefings, and also addresses cost and price negotiation policies and unsolicited proposals. For small-business contractors, understanding these rules is crucial because most federal contracts are awarded through negotiation, and the part defines how agencies evaluate proposals, exchange information with offerors, and determine fair and reasonable prices.

Key rules

• Agencies can obtain best value through various source selection approaches, such as tradeoff or lowest price technically acceptable, depending on the acquisition. (15.101, 15.101-1, 15.101-2)
• Agencies must not create tiered or cascading evaluations of small business offers for multiple-award contracts unless specifically authorized by statute. (15.101-3)
• Exchanges with industry before receipt of proposals are encouraged to improve the understanding of requirements and acquisition strategies. (15.201)
• Contracting officers must generally use the uniform contract format for solicitations and contracts, which organizes the document into four parts. (15.204-1)
• Certified cost or pricing data are not required for acquisitions at or below the simplified acquisition threshold, and exceptions exist for certain other circumstances. (15.403-1, 15.403-2)
• The contracting officer is responsible for determining that prices are fair and reasonable, using proposal analysis techniques such as cost analysis, price analysis, and profit analysis. (15.402, 15.404-1, 15.404-4)
• Offerors excluded from the competitive range or otherwise eliminated from the competition may request a preaward debriefing, and unsuccessful offerors may request a postaward debriefing. (15.505, 15.506)
• Unsolicited proposals allow unique and innovative ideas to be submitted to the Government, but they must meet content requirements and are subject to agency procedures for evaluation. (15.603, 15.605, 15.606)

Who does what

In practice

• When bidding, carefully read the solicitation to understand the evaluation factors and whether the award will be based on a tradeoff or lowest price technically acceptable, as this affects your proposal strategy.
• If you are a small business, be aware that agencies cannot use tiered evaluations for multiple-award contracts unless authorized, which may affect how your offer is considered.
• During performance, if certified cost or pricing data were required, ensure the data are accurate, complete, and current, as defective data can lead to price adjustments.
• If you are unsuccessful, consider requesting a debriefing to learn how to improve future proposals.

Common pitfalls

• Assuming that certified cost or pricing data are always required; they are not for acquisitions at or below the simplified acquisition threshold or when exceptions apply (15.403-1).
• Failing to submit proposals by the exact time specified in the solicitation; late proposals may be rejected (15.208).
• Overlooking the prohibition on tiered evaluations for small business offers in multiple-award contracts unless statutory authority exists (15.101-3).
• Not requesting a debriefing after an unsuccessful award, missing an opportunity to understand weaknesses and improve future bids (15.506).

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.