# 15.304 Evaluation factors and significant subfactors.

1. (a) The award decision is based on evaluation factors and significant subfactors that are tailored to the acquisition.

2. (b) Evaluation factors and significant subfactors must-

   1. (1) Represent the key areas of importance and emphasis to be considered in the source selection decision; and

   2. (2) Support meaningful comparison and discrimination between and among competing proposals.

3. (c) The evaluation factors and significant subfactors that apply to an acquisition and their relative importance, are within the broad discretion of agency acquisition officials, subject to the following requirements:

   1. (1) Price or cost to the Government shall be evaluated in every source selection (10 U.S.C.2305(a)(3)(A)(ii) and 41 U.S.C.3306(c)(1)(B)) (also see part 36 for architect-engineer contracts);

   2. (2) The quality of the product or service shall be addressed in every source selection through consideration of one or more non-cost evaluation factors such as past performance, compliance with solicitation requirements, technical excellence, management capability, personnel qualifications, and prior experience (10 U.S.C.2305(a)(3)(A)(i) and 41 U.S.C.3306(c)(1)(A)); and

   3. (3)

      1. (i) Past performance, except as set forth in paragraph (c)(3)(iii) of this section, shall be evaluated in all source selections for negotiated competitive acquisitions expected to exceed the simplified acquisition threshold.

      2. (ii) For solicitations that are not set aside for small business concerns, involving consolidation or bundling, that offer a significant opportunity for subcontracting, the contracting officer shall include a factor to evaluate past performance indicating the extent to which the offeror attained applicable goals for small business participation under contracts that required subcontracting plans (15 U.S.C.637(d)(4)(G)(ii)).

      3. (iii) Past performance need not be evaluated if the contracting officer documents the reason past performance is not an appropriate evaluation factor for the acquisition.

   4. (4) For solicitations, that are not set aside for small business concerns, involving consolidation or bundling, that offer a significant opportunity for subcontracting, the contracting officer shall include proposed small business subcontracting participation in the subcontracting plan as an evaluation factor (15 U.S.C.637(d)(4)(G)(i)).

   5. (5) If telecommuting is not prohibited, agencies shall not unfavorably evaluate an offer that includes telecommuting unless the contracting officer executes a written determination in accordance with FAR 7.108(b).

4. (d) All factors and significant subfactors that will affect contract award and their relative importance shall be stated clearly in the solicitation (10 U.S.C.2305(a)(2)(A)(i) and 41 U.S.C.3306(b)(1)(A)) (see 15.204-5(c)). The rating method need not be disclosed in the solicitation. The general approach for evaluating past performance information shall be described.

5. (e) The solicitation shall also state, at a minimum, whether all evaluation factors other than cost or price, when combined,- are-

   1. (1) Significantly more important than cost or price;

   2. (2) Approximately equal to cost or price; or

   3. (3) Significantly less important than cost or price (10 U.S.C.2305(a)(3)(A)(iii) and 41 U.S.C.3306(c)(1)(C)).