15.304 Evaluation factors and significant

subfactors.

(a) The award decision is based on evaluation factors and significant subfactors that are tailored to

the acquisition.

(b) Evaluation factors and significant subfactors must-

(1) Represent the key areas of importance and emphasis to be considered in the source selection

decision; and

(2) Support meaningful comparison and discrimination between and among competing proposals.

(c) The evaluation factors and significant subfactors that apply to an acquisition and their relative

importance, are within the broad discretion of agency acquisition officials, subject to the following

requirements:

(1)

(i) Price or cost to the Government shall be evaluated in every source selection (10 U.S.C.

3206(c)(1)(B) and 41 U.S.C.3306(c)(1)(B)(also see part 36 for architect-engineer contracts), subject

to the exception listed in paragraph (c)(1)(ii)(A) of this section for use by DoD, NASA, and the Coast

Guard.

(ii) In accordance with 10 U.S.C. 3206(c), for DoD, NASA, and the Coast Guard—

(A) The contracting officer may choose not to include price or cost as an evaluation factor for award

when a solicitation—

(1) Has an estimated value above the simplified acquisition threshold;

(2) Will result in multiple-award contracts (see subpart 16.5) that are for the same or similar

services; and

(3) States that the Government intends to make an award to each and all qualifying offerors (see

2.101).

(B) If the contracting officer chooses not to include price or cost as an evaluation factor for the

contract award, in accordance with paragraph (c)(1)(ii)(A) of this section, the contracting officer

shall consider price or cost as one of the factors in the selection decision for each order placed

under the contract.

(C) The exception in paragraph (c)(1)(ii)(A) of this section shall not apply to solicitations for multipleaward contracts that provide for sole source orders pursuant to section 8(a) of the Small Business

Act (15 U.S.C. 637(a)).

(2) The quality of the product or service shall be addressed in every source selection through

consideration of one or more non-cost evaluation factors such as past performance, compliance with

solicitation requirements, technical excellence, management capability, personnel qualifications, and
prior experience (10 U.S.C. 3206(c)(1)(A) and 41 U.S.C. 3306(c)(1)(A)); and

(3)

(i) Past performance, except as set forth in paragraph (c)(3)(iii) of this section, shall be evaluated in

all source selections for negotiated competitive acquisitions expected to exceed the simplified

acquisition threshold.

(ii) For solicitations that are not set aside for small business concerns, involving consolidation or

bundling, that offer a significant opportunity for subcontracting, the contracting officer shall include

a factor to evaluate past performance indicating the extent to which the offeror attained applicable

goals for small business participation under contracts that required subcontracting plans (15

U.S.C.637(d)(4)(G)(ii)).

(iii) Past performance need not be evaluated if the contracting officer documents the reason past

performance is not an appropriate evaluation factor for the acquisition.

(4) For solicitations, that are not set aside for small business concerns, involving consolidation or

bundling, that offer a significant opportunity for subcontracting, the contracting officer shall include

proposed small business subcontracting participation in the subcontracting plan as an evaluation

factor (15 U.S.C.637(d)(4)(G)(i)).

(5) If telecommuting is not prohibited, agencies shall not unfavorably evaluate an offer that includes

telecommuting unless the contracting officer executes a written determination in accordance with

FAR 7.108(b).

(d) All factors and significant subfactors that will affect contract award and their relative importance

shall be stated clearly in the solicitation (10 U.S.C. 3206(b)(1) and 41 U.S.C. 3306(b)(1)) (see

15.204-5(c)). The rating method need not be disclosed in the solicitation. The general approach for

evaluating past performance information shall be described.

(e) Unless the exception at paragraph (c)(1)(ii)(A) of this section applies, the solicitation shall also

state, at a minimum, whether all evaluation factors other than cost or price, when combined, are—

(1) Significantly more important than cost or price;

(2) Approximately equal to cost or price; or

(3) Significantly less important than cost or price (10 U.S.C. 3206(c)(1)(C) and 41

U.S.C.3306(c)(1)(C)).

Parent topic: Subpart 15.3 - Source Selection