RGCI - Putting the Negotiation in Contracting by Negotiation with Revisions to FAR Part 15

Proposed FAR Part 15 revisions would change how the government evaluates proposals and conducts exchanges with offerors. The changes could create more opportunities for government contractors to explain beneficial approaches, address specific proposal concerns, and negotiate key contract terms. Comments on FAR Case 2026-003 are due October 19, 2026.

Highlights

  • Proposed Revisions. FAR Case 2026-003 was published September 18, 2026, proposing changes to FAR Part 15 as well as Parts 8, 12, 13, 38, 44, 51, and related provisions and clauses in Part 52. Comments are due October 19, 2026.
  • Competitive Range. The proposed revisions would expand consideration beyond the most highly rated proposals to include proposals best suited for further negotiations.
  • Clarifications. Broader exchanges could allow contractors to explain ambiguities and address certain proposal concerns while retaining restrictions on material changes and omissions.
  • Negotiation Flexibility. Greater contracting officer latitude could support more meaningful exchanges, giving contractors additional opportunities to explain their approaches and negotiate proposal details.

The Federal Acquisition Regulation (FAR) is undergoing its most significant overhaul in years. FAR Part 15, Contracting by Negotiation, has been under heavy review during the restructuring process. On September 18, 2026, FAR Case 2026-003 was published proposing meaningful revisions to FAR Parts 8, 12, 13, 15, 38, 44, 51, and related provisions and clauses in Part 52. Comments on the proposed revisions are due to the FAR Council October 19, 2026. There are numerous interesting changes in this FAR Case. Having guided numerous source selection evaluation teams through FAR Part 15, certain revisions immediately caught my attention.

A Broader Competitive Range for Negotiations

One major change in FAR Part 15 is a shift from “discussions” to “negotiations.” Under the new construct, the competitive range would no longer consist of only the most highly rated proposals. Instead, the competitive range can include proposals best suited for further negotiations. The revised rule allows the government far more latitude to take a proposal into the competitive range based on uniquely beneficial technical aspect or approach, regardless of the overall rating.

More Flexibility in Clarifications

Another interesting revision proposed restructuring for exchanges with offerors. The use of clarifications would expand allowing them to be used with far more latitude. Clarifications in the past have been restricted to questions primarily requiring a “yes” or “no” type answer. The answer could not change the proposal. Under the proposed revision, clarifications could address ambiguities, perceived deficiencies, mistakes, and certain adverse past-performance information. The new rule would continue to prohibit clarifications from being used to revise material elements of a proposal or cure a material omission. However, it would allow clarifications to go past “yes, that spelling error was a mistake” to more meaningful explanations and corrections.

Greater Latitude During Negotiations

The proposed revisions would also provide the contracting officer more flexibility and latitude during negotiations. In the past, negotiations have been hindered by process. “Can I ask this question now?” “Can I ask this as a clarification?” “Do I need to open another round of discussions with everyone to better understand this one point?” The FAR Part 15 proposed revisions should result in a better exchange between government and industry. While the government will have more latitude, the revisions should also benefit government contractors, allowing contractors to propose more out of the box ideas with a better opportunity to negotiate the details and explain the plan through a more fluid exchange process.

Preparing for Changes in Contract Negotiations

The proposed FAR Part 15 revisions could affect how government contractors prepare proposals, respond to clarification requests, and participate in negotiations. Redstone GCI helps government contractors review solicitation requirements and contract terms, develop negotiation positions, and prepare for exchanges with government customers. Our team of experts also provides FAR training to help contracts and proposal personnel understand applicable requirements and support more effective negotiations.

Learn More About Our Federal Acquisition Regulations (FAR) Compliance Services

Frequently Asked Questions (FAQs)

  • What is FAR Part 15? FAR Part 15 establishes procedures for contracting by negotiation, including how the government evaluates proposals and communicates with offerors.
  • What is the competitive range? It is the group of proposals selected for further negotiations. The proposed changes would allow consideration of proposals well suited for negotiation, even if they are not the highest rated.
  • How are clarifications different from negotiations? Clarifications help explain details of an existing proposal. Negotiations allow contractors to discuss and revise their proposals, including potential contract terms.
  • Could clarifications be used to fix any proposal problem? No. The proposed revisions would still prohibit clarifications from changing material elements of a proposal or filling a material omission.
  • Are these revisions final? No. This article discusses proposed revisions that are open for public comment.
  • Why do these changes matter to contractors? They could create more opportunities to explain a proposal’s value and negotiate its details before the government selects a contractor.

Written by Kelli Beene

Kelli Beene Kelli is a Senior Legal Consultant with Redstone Government Consulting, Inc. Formerly Associate General Counsel for the Missile Defense Agency, Kelli assists companies with compliance, interpretation, and analysis of contract and procurement laws, regulations, and contract clauses. Additionally, Kelli advises companies with preparation and review of proposals. She also assists companies with teaming agreements, contract negotiations, claims, terminations, debriefings, protests, and general government contract topics. She assists companies with assessing potential Organizational Conflicts of Interests (OCI), establishing OCI monitoring programs and training employees on OCI. Kelli advises clients with responding to external agencies such as Suspension and Debarment Officials and Department of Justice with regard to procurement fraud investigations and provides litigation support as needed.

Professional Experience

Kelli began her career at the Missile Defense Agency in 2006 in the Ground Based Mid‐Course Defense contracts office. There she negotiated contracts, worked contract terminations, claims, modifications, and any other contracting actions needed. Kelli also working in the MiDAESS office where she assisted with developing acquisition strategies, wrote requests for proposals, advised evaluation teams, assisted with preparing evaluation documentation, and prepared Agency position concerning OCI issues. In 2010, Kelli joined the Missile Defense Agency General Counsel’s Office. In that capacity, Kelli served as legal counsel on complex source selections to include multiple Targets procurements, as well as MiDAESS and TEAMS. She advised clients on all acquisition and contract matters to include interpretation of procurement related laws and regulations, acquisition strategy, data rights considerations, claims, terminations, and defending the Agency against legal challenges. She served as MDA’s Procurement Fraud attorney and Suspension and Debarment counsel. She assisted with forming and served on MDA’s OCI panel.

About Redstone GCI

Redstone GCI is a consulting firm focused on fulfilling the needs of government contractors in all areas of compliance. With a singular mission to help contractors through the multiple layers of “red tape,” we allow contractors to focus on what they do best – support their mission with the U.S. Government. We are home to a group of consultants made up of GovCon industry professionals, CPAs, attorneys, and retired government audit and acquisition professionals.

Our focus and knowledge of audit and compliance functions administered by DCAA and DCMA will always be at the heart of what we do. However, for the past decade, we’ve strategically grown to support other areas of the government contractor back-office with that same level of focus and expertise. We’ve added expertise in contracts management, subcontract administration, proposal pricing, various software systems, HR and employment law, property administration, manufacturing, data analytics/reporting, Grant specialists, M&A, and many other areas. When we see a trend in the needs of contractors, we act to ensure we can provide the best expertise in the market to fulfill those needs.

One thing our clients can be certain of is that with the Redstone GCI Team in your corner, there is no problem too big and no issue too technical for our team to tackle.

Topics: Proposal Cost Volume Development & Pricing, Contracts & Subcontracts Administration, Government Regulations, Federal Acquisition Regulation (FAR)