(a) Preparation; planning; specifications in solicitation

(1)

In preparing for the procurement of property or services, an executive agency shall -

(A)

specify its needs and solicit bids or proposals in a manner designed to achieve full and open competition for the procurement;

(B)

use advance procurement planning and market research; and

(C)

develop specifications in such manner as is necessary to obtain full and open competition with due regard to the nature of the property or services to be acquired.

(2)

Each solicitation under this subchapter shall include specifications which -

(A)

consistent with the provisions of this subchapter, permit full and open competition;

(B)

include restrictive provisions or conditions only to the extent necessary to satisfy the needs of the executive agency or as authorized by law.

(3)

For the purposes of paragraphs (1) and (2), the type of specification included in a solicitation shall depend on the nature of the needs of the executive agency and the market available to satisfy such needs. Subject to such needs, specifications may be stated in terms of -

(A)

function, so that a variety of products or services may qualify;

(B)

performance, including specifications of the range of acceptable characteristics or of the minimum acceptable standards; or

(C)

design requirements.

(b) Contents of solicitation

In addition to the specifications described in subsection (a) of this section, each solicitation for sealed bids or competitive proposals (other than for a procurement for commercial items using special simplified procedures or a purchase for an amount not greater than the simplified acquisition threshold) shall at a minimum include -

(1)

a statement of -

(A)

all significant factors and significant subfactors which the executive agency reasonably expects to consider in evaluating sealed bids (including price) or competitive proposals (including cost or price, cost-related or price-related factors and subfactors, and noncost-related or nonprice-related factors and subfactors); and

(B)

the relative importance assigned to each of those factors and subfactors; and

(2)

(A)

in the case of sealed bids -

(i)

a statement that sealed bids will be evaluated without discussions with the bidders; and

(ii)

the time and place for the opening of the sealed bids; or

(B)

in the case of competitive proposals -

(i)

either a statement that the proposals are intended to be evaluated with, and award made after, discussions with the offerors, or a statement that the proposals are intended to be evaluated, and award made, without discussions with the offerors (other than discussions conducted for the purpose of minor clarification) unless discussions are determined to be necessary; and

(ii)

the time and place for submission of proposals.

(c) Evaluation factors

(1)

In prescribing the evaluation factors to be included in each solicitation for competitive proposals, an executive agency -

(A)

shall clearly establish the relative importance assigned to the evaluation factors and subfactors, including the quality of the product or services to be provided (including technical capability, management capability, prior experience, and past performance of the offeror);

(B)

shall include cost or price to the Federal Government as an evaluation factor that must be considered in the evaluation of proposals; and

(C)

shall disclose to offerors whether all evaluation factors other than cost or price, when combined, are -

(i)

significantly more important than cost or price;

(ii)

approximately equal in importance to cost or price; or

(iii)

significantly less important than cost or price.

(2)

The regulations implementing subparagraph (C) of paragraph (1) may not define the terms ''significantly more important'' and ''significantly less important'' as specific numeric weights that would be applied uniformly to all solicitations or a class of solicitations.

(d) Additional information in solicitation

Nothing in this section prohibits an executive agency from -

(1)

providing additional information in a solicitation, including numeric weights for all evaluation factors and subfactors on a case-by-case basis; or

(2)

stating in a solicitation that award will be made to the offeror that meets the solicitation's mandatory requirements at the lowest cost or price.

(e) Evaluation of purchase options

An executive agency, in issuing a solicitation for a contract to be awarded using sealed bid procedures, may not include in such solicitation a clause providing for the evaluation of prices for options to purchase additional property or services under the contract unless the executive agency has determined that there is a reasonable likelihood that the options will be exercised