I know FAR states that '(1) Adequate price competition. A price is based on adequate price competition if - (i) Two or more responsible offerors, competing independently, submit priced offers that satisfy the Government's expressed requirements and if .....'
My question deals with the solicitation process. It seems that a contractor/subcontractor can just pick any two and only two sobcontractors and seem to satisfy the FAR requirement. That is what I am seeing in my audits. Only two solicitations are being sent out. If the subcontractor only sends out two when there are more suppliers out there, is this really competition that would satisfy FAR? Seems like a way to circumvent the CoPD requirement. Further, FAR 52.244-5 states 'Competition in Subcontracting (Dec 1996) (a) The contractor shall select subcontractors (including suppliers) on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the contract'
What should a subcontractor do in satisfying the competition requirements. How should they determine who to solicit, etc.? Is there and authoritative literature that I can read?
Open full Question Details
The Government is subject to stricter standards for the type and level of competition when soliciting prime contracts than prime contractors are subject to when soliciting for subcontracts. The Government is responsible for establishing "full and open competition," while the prime contractor is not. The article at this link
provides a very good summary of the issue.