[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR7.306]

[Page 114-115]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 7_ACQUISITION PLANNING--Table of Contents
 
          Subpart 7.3_Contractor Versus Government Performance
 
Sec.  7.306  Evaluation.

    The evaluation procedure to be followed after the contracting 
officer receives the cost estimate for Government performance (see 
7.304(b)) and the responses to the solicitation differs from 
conventional contracting procedures as follows:
    (a) Sealed bidding. (1) At the public bid opening, after recording 
of bids, the contracting officer shall--
    (i) Open the sealed cost comparison on which the cost estimate for 
Government performance has been entered;
    (ii) Enter on the cost comparison form the price of the apparent low 
bidder;
    (iii) Announce the result, based on the initial cost comparison 
form, stating that this result is subject to required agency processing, 
including evaluation for responsiveness and responsibility, completion 
and audit of the cost comparison form (see Supplement, Part IV, 
Illustration 1), and resolution of any requests for review under the 
appeals procedure (see 7.307);
    (iv) State that no final determination for performance by the 
Government or under contract will be made during the public review 
period specified in the solicitation (at least 15 working days, up to a 
maximum of 30 working days if the contracting officer considers the 
action to be complex; the public review period begins when the documents 
identified in (v) below are available to interested parties), plus any 
additional time required for the appeals procedure; and
    (v) Make available for this public review by interested parties the 
abstract of bids, completed cost comparison form, and detailed data 
supporting the cost estimate for Government performance.

[[Page 115]]

    (2) After evaluation of bids (see subpart 14.4) and determinations 
of responsibility, the contracting officer shall provide the price of 
the low responsive, responsible bidder to the preparer of the cost 
estimate for Government performance, for final Government review of the 
cost comparison form.
    (3) Upon completion of the review process, including resolution of 
any request under 7.307, the responsible agency official shall make the 
final determination for performance by the Government or under contract 
and provide written notification to the contracting officer, who shall 
either award a contract or cancel the solicitation as required.
    (4) The contracting officer shall make the completed and approved 
cost comparison analysis available to interested parties upon request.
    (b) Negotiation. The contracting officer shall receive proposals, 
evaluate them (see subpart 15.3), conduct negotiations, and select the 
most advantageous proposal in accordance with normal contracting 
procedures (see part 15). The contracting officer shall, before public 
announcement, open the sealed estimate in the presence of the preparer, 
enter the amount of the most advantageous proposal on the cost 
comparison form, and return the form to the preparer of the cost 
estimate for Government performance for completion. The preparer shall 
give due consideration to all types of costs which could add or subtract 
from the cost of either mode of performance.
    (1) If the result of the cost comparison favors performance under 
contract and the responsible agency official approves the result, the 
contracting officer shall award a contract in accordance with agency 
procedures. Concurrently with the award, the contracting officer shall 
publicly--
    (i) Notify interested parties of the result of the cost comparison;
    (ii) Inform interested parties that the completed cost comparison 
form and detailed supporting data are available for review;
    (iii) Announce the contractor's name; and
    (iv) Advise interested parties that contractor preparations for 
performance are conditioned upon completion of the public review period 
specified in the solicitation plus any additional period required by the 
appeals procedure.
    (2) If the result of the cost comparison favors Government 
performance, the contracting officer shall--
    (i) Notify interested parties of the result of the cost comparison;
    (ii) Inform interested parties that the completed cost comparison 
form and detailed supporting data relative to the Government cost 
estimate are available for public review (see subparagraph (3) below); 
and
    (iii) Announce the price of the offer most advantageous to the 
Government.
    (3) The public review period shall begin with the contracting 
officer's announcement of the cost comparison result and availability of 
the cost comparison forms and detailed supporting data to interested 
parties. The review period shall last for the period specified in the 
solicitation (at least 15 working days, up to a maximum of 30 working 
days if the contracting officer considers the action to be complex). 
Upon completion of the public review period and resolution of any 
questions raised under 7.307, the responsible agency official shall 
provide the contracting officer written notification of the final cost 
comparison decision. The contracting officer shall then, in the case of 
subparagraph (b)(1) of this section, give the contractor notice to 
commence or cancel the contract as appropriate or, in the case of 
subparagraph (b)(2) of this section, cancel the solicitation or award 
the contract, as appropriate.

[48 FR 42124, Sept. 19, 1983, as amended at 50 FR 1735, Jan. 11, 1985; 
50 FR 52429, Dec. 23, 1985; 51 FR 34125, Sept. 3, 1986; 53 FR 661, Jan. 
11, 1988; 55 FR 25526, June 21, 1990; 56 FR 41744, Aug. 22, 1991; 57 FR 
60575, Dec. 21, 1992; 60 FR 34737, July 3, 1995; 62 FR 51270, Sept. 30, 
1997]