Summary: Contracting agencies are generally required to solicit offers or proposals from the maximum number of qualified sources in selecting their contractors. It is insufficient for an agency to attempt to obtain only a reasonable amount of competition; it must seek out all possible sources. Agencies have attempted to control the extent of competition through the use of prequalification plans. Such plans are proper when they are designed to enhance competition but are not appropriate when the sole purpose of the plan is administrative convenience or the desire to reduce the number of firms competing for a procurement. Contracting agencies are required to hold meaningful discussions with offerors submitting proposals within a competitive range prior to making an award in a negotiated procurement. To be within the competitive range, a proposal must be acceptable and it must compare favorably to the other proposals received. Some agencies are finding the statutory and regulatory requirements for maximum practicable competition and meaningful discussions burdensome on occasions. They are seeking new ways to speed up and simplify the procurement process through prequalification and by limiting the content and scope of discussions. GAO reviews such attempts on a case-by-case basis to determine whether competition is restricted or enhanced. Protests are likely to be sustained where offerors are not treated equally or where agency action in violating proposals appears to be unreasonable.
