---
kind: "section"
citation: "48 C.F.R. § 15.304"
title: "48"
number: "15.304"
heading: "Evaluation factors and significant subfactors."
url: "https://uscodex.org/cfr/48/15.304"
---

# §15.304. Evaluation factors and significant subfactors.

- (a) The award decision is based on evaluation factors and significant subfactors that are tailored to the acquisition.
- (b) **Evaluation factors and significant subfactors must—**
  - (1) Represent the key areas of importance and emphasis to be considered in the source selection decision; and
  - (2) **Support meaningful comparison and discrimination between and among competing proposals.**
- (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)
    - (i) Price or cost to the Government shall be evaluated in every source selection (10 U.S.C. [3206(c)(1)(B)](/usc/10/3206.md?p=c-1-B) and [41](/usc/10/41.md) U.S.C. 3306(c)(1)(B)) (also see [part 36](/cfr/48/part36.md) for architect-engineer contracts), subject to the exception listed in [paragraph (c)(1)(ii)(A)](#c-1-ii-A) of this section for use by DoD, NASA, and the Coast Guard.
    - (ii) In accordance with [10 U.S.C. 3206(c)](/usc/10/3206.md?p=c), for DoD, NASA, and the Coast Guard—
      - (A) The contracting officer may choose not to include price or cost as an evaluation factor for award when a solicitation—

        (1) Has an estimated value above the simplified acquisition threshold;

        (2) Will result in multiple-award contracts (see [subpart 16.5](/cfr/48/subpart16.5.md)) that are for the same or similar services; and

        (3) States that the Government intends to make an award to each and all qualifying offerors (see 2.101).

      - (B) If the contracting officer chooses not to include price or cost as an evaluation factor for the contract award, in accordance with [paragraph (c)(1)(ii)(A)](#c-1-ii-A) of this section, the contracting officer shall consider price or cost as one of the factors in the selection decision for each order placed under the contract.
      - (C) The exception in [paragraph (c)(1)(ii)(A)](#c-1-ii-A) of this section shall not apply to solicitations for multiple-award contracts that provide for sole source orders pursuant to section 8(a) of the Small Business Act ([15 U.S.C. 637(a)](/usc/15/637.md?p=a)).
  - (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. [3206(c)(1)(A)](/usc/10/3206.md?p=c-1-A)and [41](/usc/10/41.md) U.S.C. 3306(c)(1)(A)).
  - (3)
    - (i) Past performance, except as set forth in [paragraph (c)(3)(iii)](#c-3-iii) of this section, shall be evaluated in all source selections for negotiated competitive acquisitions expected to exceed the simplified acquisition threshold.
    - (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)](/usc/15/637.md?p=d-4-G-ii)).
    - (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) 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)](/usc/15/637.md?p=d-4-G-i)).
  - (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).
- (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. [3206(b)(1)](/usc/10/3206.md?p=b-1) and [41](/usc/10/41.md) U.S.C. 3306(b)(1) (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.
- (e) Unless the exception at [paragraph (c)(1)(ii)(A)](#c-1-ii-A) of this section applies, the solicitation shall also state, at a minimum, whether all evaluation factors other than cost or price, when combined, are—
  - (1) Significantly more important than cost or price;
  - (2) Approximately equal to cost or price; or
  - (3) Significantly less important than cost or price (10 U.S.C. [3206(c)(1)(C)](/usc/10/3206.md?p=c-1-C) and [41](/usc/10/41.md) U.S.C. 3306(c)(1)(C)).

## Notes

### Amendments

[62 FR 51230, Sept. 30, 1997, as amended at 63 FR 36121, July 1, 1998; 64 FR 72443, Dec. 27, 1999; 65 FR 36014, June 6, 2000; 69 FR 59702, Oct. 5, 2004; 71 FR 57366, Sept. 28, 2006; 75 FR 53133, Aug. 30, 2010; 79 FR 24201, Apr. 29, 2014; 79 FR 61750, Oct. 14, 2014; 81 FR 67772, Sept. 30, 2016; 81 FR 45843, July 14, 2016; 85 FR 40071, July 2, 2020' 87 FR 73897, Dec. 1, 2022]

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 62 FR 51230, Sept. 30, 1997, unless otherwise noted.

### Amendments

[62 FR 51230, Sept. 30, 1997, as amended at 63 FR 36121, July 1, 1998; 64 FR 72443, Dec. 27, 1999; 65 FR 36014, June 6, 2000; 69 FR 59702, Oct. 5, 2004; 71 FR 57366, Sept. 28, 2006; 75 FR 53133, Aug. 30, 2010; 79 FR 24201, Apr. 29, 2014; 79 FR 61750, Oct. 14, 2014; 81 FR 67772, Sept. 30, 2016; 81 FR 45843, July 14, 2016; 85 FR 40071, July 2, 2020' 87 FR 73897, Dec. 1, 2022]