Pricing and Cost Accounting, 3rd Edition

 

CHAPTER 1Federal Government Procurement Methods

The federal government uses three primary methods for soliciting and awarding contracts: commercial items, sealed bids, and negotiations. Commercial items are addressed in Part 12 of the Federal Acquisition Regulation (FAR), with special coverage of Federal Supply Service (FSS) contracts in Part 38. Sealed bids are covered by FAR Part 14, Sealed Bidding. Negotiations, which usually involve some interface between the government and the contractor, are classified as either competitive or sole source and are subject to FAR Part 15, Contracting by Negotiation. The difference between FAR Parts 12 and 15 is often not fully understood. Part 12 pertains to commercial purchases by the government and Part ...