H. R. 1107—77 
agency and the market available to satisfy those needs. Subject 
to those 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), 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 that 
the executive agency reasonably expects to consider in 
evaluating sealed bids (including price) or competitive pro-
posals (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 the award made after, discussions 
with the offerors, or a statement that the proposals are 
intended to be evaluated, and the award made, without 
discussions with the offerors (other than discussions con-
ducted for the purpose of minor clarification) unless discus-
sions are determined to be necessary; and 
(ii) the time and place for submission of proposals. 
(c) EVALUATION FACTORS.— 
(1) IN
GENERAL.—In prescribing the evaluation factors to 
be included in each solicitation for competitive proposals, an 
executive agency shall— 
(A) establish clearly 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 experi-
ence, and past performance of the offeror); 
(B) include cost or price to the Federal Government as 
an evaluation factor that must be considered in the evalua-
tion of proposals; and 
(C) 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) RESTRICTION ON IMPLEMENTING REGULATIONS.—Regula-
tions implementing paragraph (1)(C) may not define the terms
H. R. 1107—78 
‘‘significantly more important’’ and ‘‘significantly less impor-
tant’’ as specific numeric weights that would be applied uni-
formly to all solicitations or a class of solicitations. 
(d) ADDITIONAL INFORMATION IN SOLICITATION.—This section does 
not prohibit an executive agency from— 
(1) providing additional information in a solicitation, 
including numeric weights for all evaluation factors and subfac-
tors 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) LIMITATION
ON 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 the solici-
tation 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 reason-
able likelihood that the options will be exercised. 
(f) AUTHORIZATION OF TELECOMMUTING FOR FEDERAL CONTRAC-
TORS.— 
(1) DEFINITION.—In this subsection, the term ‘‘executive 
agency’’ has the meaning given that term in section 133 of 
this title. 
(2) FEDERAL ACQUISITION REGULATION TO ALLOW TELECOM-
MUTING.—The Federal Acquisition Regulation issued in accord-
ance with sections 1121(b) and 1303(a)(1) of this title shall 
permit telecommuting by employees of Federal Government 
contractors in the performance of contracts entered into with 
executive agencies. 
(3) SCOPE OF ALLOWANCE.—The Federal Acquisition Regula-
tion at a minimum shall provide that a solicitation for the 
acquisition of property or services may not set forth any require-
ment or evaluation criteria that would— 
(A) render an offeror ineligible to enter into a contract 
on the basis of the inclusion of a plan of the offeror to 
allow the offeror’s employees to telecommute, unless the 
contracting officer concerned first determines that the 
requirements of the agency, including security require-
ments, cannot be met if telecommuting is allowed and 
documents in writing the basis for the determination; or 
(B) reduce the scoring of an offer on the basis of the 
inclusion in the offer of a plan of the offeror to allow 
the offeror’s employees to telecommute, unless the con-
tracting officer concerned first determines that the require-
ments of the agency, including security requirements, 
would be adversely impacted if telecommuting is allowed 
and documents in writing the basis for the determination. 
§ 3307. Preference for commercial items 
(a) RELATIONSHIP OF PROVISIONS OF LAW TO PROCUREMENT OF 
COMMERCIAL ITEMS.— 
(1) THIS DIVISION.—Unless otherwise specifically provided, 
all other provisions in this division also apply to the procure-
ment of commercial items. 
(2) LAWS LISTED IN FEDERAL ACQUISITION REGULATION.—A 
contract for the procurement of a commercial item entered 
into by the head of an executive agency is not subject to