Understanding the Competitive Range in Government Contracting
In the world of federal acquisitions—specifically negotiated procurements under FAR Part 15—the Contracting Officer (CO) doesn’t always talk to every company that submits a proposal. Instead, we use a process called the Competitive Range Determination to narrow the field.
The “Competitive Range” is the group of the most highly rated proposals that have a reasonable prospect of being selected for award. If your proposal isn’t in this range, you’re out of the running before discussions even begin.
The Purpose: Efficiency and Focus
Why do we do this? Simple: Efficiency. Conducting “discussions” (negotiations) takes a massive amount of time for both the Air Force and the contractors. By limiting the range to only the most competitive firms, the CO can focus on refining the best deals for the taxpayer.
How the Process Works
The determination is based on the evaluation criteria set forth in the solicitation (Section M). Here is the standard workflow:
- Evaluation: The Source Selection Evaluation Board (SSEB) evaluates all proposals against the stated criteria (Technical, Price, Past Performance, etc.).
- Initial Rating: The CO reviews these evaluations to see which proposals are “highly rated.”
- The Cut: The CO, with approval from the Source Selection Authority (SSA), determines which proposals stay and which are excluded.
- Notification: Under FAR 15.503(a), the CO must promptly notify offerors excluded from the competitive range.
Key Factors in the Decision
Contrary to popular belief, “low price” doesn’t automatically get you into the competitive range. The CO looks at the total value. A proposal can be excluded if:
- It is so technically inferior that it would require a total rewrite.
- The price is so high (or unrealistically low) that it is not competitive.
- The past performance record indicates a high risk of mission failure.
Pro-Tip from the Field: The CO has the authority to limit the number of proposals in the competitive range to a “natural break” for the sake of efficiency, provided the solicitation notified offerors that this was a possibility.