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FAR Part 15: Contracting by Negotiation

FAR Part 15 (Contracting by Negotiation): the six subparts, best-value tradeoff vs. LPTA, certified-data threshold, and 3-day debrief windows.

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FAR Part 15, titled “Contracting by Negotiation,” is the part of the Federal Acquisition Regulation that governs how a federal agency buys when it does not use sealed bidding: it issues a request for proposals, evaluates what comes back, may narrow the field, and awards on the basis the solicitation announced. For a research office the practical point is that Part 15 governs federal contracts, not grants. This guide describes the part as it appears on acquisition.gov, checked on 2026-10-29, and adds what the part’s own text does not: a map from each subpart to the step of the process it controls, and the short clocks that run after an award.

What FAR Part 15 is and who runs it

The FAR is the government-wide acquisition rulebook, published at acquisition.gov and maintained by the Federal Acquisition Regulatory Council. Section 15.000 states the scope in one sentence: “This part prescribes policies and procedures governing competitive and noncompetitive negotiated acquisitions.” The same section adds that a contract awarded using other than sealed bidding procedures is a negotiated contract (see FAR 14.101).

As described on acquisition.gov on 2026-10-29, the part has six subparts:

Subpart Title Where it bites
15.1 Source Selection Processes and Techniques Choosing between a tradeoff process and lowest price technically acceptable
15.2 Solicitation and Receipt of Proposals and Information The RFP itself, early industry exchanges, and the deadline for proposals
15.3 Source Selection Evaluation and the competitive range
15.4 Contract Pricing Fair and reasonable price, price and cost analysis, certified cost or pricing data
15.5 Preaward, Award, and Postaward Notifications, Protests, and Mistakes Notices to unsuccessful offerors and debriefings
15.6 Unsolicited Proposals Proposals submitted without a solicitation

When Part 15 applies

Part 15 applies when a federal agency awards a contract by negotiation. An institution becomes an “offeror” under it when it submits a proposal in response to a federal solicitation. It does not govern a grant or cooperative agreement; the difference between those instruments and a contract is covered in grant vs. contract vs. cooperative agreement and, for universities, in federal contracts vs. grants for university research.

Part 15 sits alongside the other parts of the FAR rather than replacing them. Commercial-product buying has its own streamlined part, described in FAR Part 12, and the simplified acquisition threshold, which Part 15 uses as a pricing cutoff, is defined in the simplified acquisition threshold entry.

What Part 15 requires

Best value: tradeoff or lowest price technically acceptable

Subpart 15.1 describes two source selection processes. Under FAR 15.101-1, “a tradeoff process is appropriate when it may be in the best interest of the Government” to consider award to a proposal other than the lowest-priced or highest technically rated one. Under FAR 15.101-2, the lowest price technically acceptable process is appropriate “when best value is expected to result from selection of the technically acceptable proposal with the lowest evaluated price.” Which process applies is stated in the solicitation, so an offeror reads the RFP to learn whether a stronger technical approach can outweigh a higher price.

What the RFP must say

Under FAR 15.203, the request for proposals describes the requirement, the anticipated terms and conditions, the information offerors must provide, and the evaluation factors and their relative importance. FAR 15.204-1 directs that “contracting officers shall prepare solicitations and resulting contracts using the uniform contract format.”

Pricing: fair and reasonable, and when certified data apply

FAR 15.402 sets the pricing policy: contracting officers shall “purchase supplies and services from responsible sources at fair and reasonable prices.” Subpart 15.4 then defines the tools. Price analysis is “the process of examining and evaluating a proposed price,” while cost analysis is “the review and evaluation of any separate cost elements and profit or fee”; the difference is worked through in cost analysis vs. price analysis.

The stricter requirement is certified cost or pricing data. FAR 15.403-1 says these “shall not be obtained for acquisitions at or below the simplified acquisition threshold,” and the contracting officer does not require them where there is adequate price competition, which among its other conditions requires two or more responsible offerors, competing independently, to submit priced offers that satisfy the Government’s expressed requirement (the full conditions are in 15.403-1(c)(1)). Commercial products and commercial services are also treated separately in that section. Where data are required, the contractor signs a Certificate of Current Cost or Pricing Data under FAR 15.406-2, attesting that to the best of its knowledge and belief the data are accurate, complete, and current. The consequences are covered in the TINA threshold.

As shown on the FAR 15.403-4 page on 2026-10-29, the threshold is $2.5 million for prime contracts awarded on or after July 1, 2018 (it was $950,000 before that date), and it can be adjusted for inflation under FAR 1.109(a). Check FAR 1.109 for the current figure before relying on a number in a budget.

Steps from RFP to award

  1. Early exchanges. FAR 15.201 encourages exchanges with industry before a solicitation is issued, such as industry conferences, one-on-one meetings, draft RFPs, and requests for information, subject to procurement integrity rules.
  2. Solicitation. The agency issues the RFP with its evaluation factors (15.203).
  3. Proposal submission. Offerors are responsible for getting proposals to the designated office by the time stated in the solicitation (15.208).
  4. Evaluation and competitive range. After evaluating each proposal against all evaluation criteria, the contracting officer “shall establish a competitive range comprised of all of the most highly rated proposals,” unless the range is reduced further for efficiency under 15.306(c)(2).
  5. Notice to those excluded. Offerors excluded from the competitive range are notified promptly in writing, with the basis for the determination (15.503(a)(1)).
  6. Award and notices. Within 3 days after the date of contract award, the contracting officer provides written notice to competitive-range offerors who were not selected (15.503(b)).
  7. Debriefing. An offeror may ask for a debriefing, with the clocks in the next section.

Typical timeline phases

The regulation fixes only a few intervals, and they all fall at the end. In order of the process:

  • Before award: early exchanges, the RFP, the proposal deadline, evaluation, and the competitive-range decision. The solicitation, not Part 15, sets the proposal deadline.
  • Exclusion from the competitive range: written notice “promptly,” and a request for a preaward debriefing must be submitted within 3 days after receipt of that notice (15.505). At the offeror’s request the debriefing may be delayed until after award.
  • Award: written notice to unselected competitive-range offerors within 3 days of award (15.503(b)).
  • After award: a postaward debriefing request must be received within 3 days after the offeror receives notification of award, and the debriefing should occur within 5 days after receipt of the written request to the maximum extent practicable (15.506). It covers the basis for the selection decision and award.

Those three-day windows are short enough that an institution’s sponsored programs office should know who will file the request before it submits the proposal.

Common mistakes

  • Submitting late. Under 15.208(b), a proposal received after the exact time specified is “late” and will not be considered unless the narrow conditions in that paragraph are met. Build in margin for whatever transmission method the solicitation authorizes.
  • Assuming the lowest price wins. Only the lowest price technically acceptable process works that way. Under a tradeoff process the agency may pay more for a better proposal if the solicitation’s factors support it.
  • Assuming certified cost or pricing data are always required. They are not obtained at or below the simplified acquisition threshold, and not where adequate price competition exists.
  • Mixing up price analysis and cost analysis. Price analysis evaluates the proposed price; cost analysis reviews separate cost elements and profit or fee. Subpart 15.4 uses each in different circumstances.
  • Missing the debriefing window. A request that arrives after the 3-day period in 15.505 or 15.506 is outside the regulation’s entitlement.
  • Treating a grant like a contract. Grant terms and Part 15 procedures are different regimes. Do not apply one to the other’s award.

Related FAR parts and pages

Topic Relation to Part 15 Page
Commercial products and services (FAR Part 12) A separate FAR part for buying commercial items FAR Part 12
Certified cost or pricing data Required or excused by 15.403-1 and 15.403-4 TINA threshold
Price and cost analysis Defined in 15.404-1 Cost vs. price analysis
Simplified acquisition threshold The cutoff in 15.403-1(a) Simplified acquisition threshold
Grant, contract or cooperative agreement Part 15 covers only the contract Grant vs. contract vs. cooperative agreement

Frequently asked questions

What is FAR Part 15?

It is the part of the Federal Acquisition Regulation titled “Contracting by Negotiation.” It prescribes policies and procedures for competitive and noncompetitive negotiated acquisitions (FAR 15.000).

Is a negotiated contract the same as a sealed-bid contract?

No. FAR 15.000 states that a contract awarded using other than sealed bidding procedures is a negotiated contract.

What is the threshold for certified cost or pricing data?

As shown on the FAR 15.403-4 page on 2026-10-29, it is $2.5 million for prime contracts awarded on or after July 1, 2018, and it can be adjusted for inflation under FAR 1.109(a). Exceptions in 15.403-1 can excuse the data even above the threshold.

How long do I have to request a debriefing?

Three days. A preaward debriefing request goes to the contracting officer within 3 days after receipt of the exclusion notice (15.505). A postaward request must be received within 3 days after the offeror receives notification of award (15.506).

Does Part 15 apply to grants?

No. It governs negotiated federal acquisitions, that is, contracts. Grants and cooperative agreements are a different kind of award.

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