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FAR and DFARS › FAR Part 15: Contracting by Negotiation › Subpart 15.1

FAR 15.101-1 Tradeoff process.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section describes the tradeoff process, which lets the Government award to an offeror other than the lowest priced or highest technically rated one when that is in its best interest. It matters because it means price alone does not decide the award, and the solicitation must spell out the evaluation factors and their relative importance.

Applies to: Government acquisitions using a tradeoff source selection process

What it requires

  • Clearly state in the solicitation all evaluation factors and significant subfactors that will affect contract award and their relative importance
  • State in the solicitation whether all evaluation factors other than cost or price, when combined, are significantly more important than, approximately equal to, or significantly less important than cost or price
  • Document the rationale for tradeoffs in the file in accordance with 15.406

Key terms: tradeoff process · evaluation factors · significant subfactors · solicitation · cost or price

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) A tradeoff process is appropriate when it may be in the best interest of the Government to consider award to other than the lowest priced offeror or other than the highest technically rated offeror.

(b) When using a tradeoff process, the following apply:

(1) All evaluation factors and significant subfactors that will affect contract award and their relative importance shall be clearly stated in the solicitation; and

(2) The solicitation shall state whether all evaluation factors other than cost or price, when combined, are significantly more important than, approximately equal to, or significantly less important than cost or price.

(c) This process permits tradeoffs among cost or price and non-cost factors and allows the Government to accept other than the lowest priced proposal. The perceived benefits of the higher priced proposal shall merit the additional cost, and the rationale for tradeoffs must be documented in the file in accordance with 15.406.

Sections it refers to

Sections that refer to it

  • 15.305 Proposal evaluation.
  • 215.101-71 Tradeoff process when acquiring fuel for overseas contingency operations.

← 15.101 Best value continuum. · 15.101-2 Lowest price technically acceptable source selection process. →

Rule changes for FAR Part 15

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 15.101-1 Tradeoff process · SpendQuery