See the Glossary for more terms.
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This SOP has internal roles only.
To provide information regarding the contract negotiation process in accordance with FAR Part 15. Negotiations are exchanges, in either a competitive or sole source environment, between the government and offerors, that are undertaken with the intent of allowing the offeror to revise its proposal.
In a competitive acquisition, negotiations take place after a contracting officer establishes the competitive range. In the case of a sole source acquisition, it is unnecessary to establish a competitive range. When negotiations are conducted in a competitive acquisition, they take place after establishment of the competitive range and are called discussions.
Discussions may apply to price, schedule, technical requirements, type of contract, or other contract terms. The primary objective is to enable the government to obtain the best value based on the requirement and evaluation factors in the solicitation. Discussions may include bargaining, which involves persuasion, alteration of assumptions and positions, and give-and-take and may apply to price, schedule, technical requirements, type of contract, or other terms of a proposed contract.
Office of Acquisitions (OA) and program staff work together closely during discussions. Discussions are conducted with all offerors in the competitive range to allow them to clarify, correct, or support their proposals. Contracting officers determine the scope and extent of discussions and allow offerors sufficient time to revise proposals and provide cost and pricing information. Following discussions, offerors remaining in the competitive range are requested to submit a written final proposal revision.
During discussions, government personnel may not engage in conduct that:
See the Office of Acquisitions staff listing for the appropriate contract specialist.
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FAR 15.101, Best Value Continuum
FAR 15.306. Exchanges with offerors after receipt of proposals
FAR 15.404-1. Proposal Analysis Techniques
HHSAR 315, Contracting by Negotiation
HHSAR 315.372, Preparation of Negotiation Memorandum
NIH Manual Issuance 6015-1, Financial Analysis of Contract Proposals and Modifications
Structured Approach, Profit-Fee Objective Spreadsheet (MS Excel)
Contract Specialists Request for Audit Assistance by DFAS
Competitive Range for Contracts SOP
Contracting Officer SOP
Contracting Officer's Representative (COR) SOP
Last Updated March 27, 2012
Last Reviewed March 27, 2012