41 U.S.C. § 3701

Basis of award and rejection

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 41 CasesGoogle Scholar
(a)Award.—An executive agency shall evaluate sealed bids and competitive proposals, and award a contract, based solely on the factors specified in the solicitation.(b)Rejection.—All sealed bids or competitive proposals received in response to a solicitation may be rejected if the agency head determines that rejection is in the public interest.(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3770.)

Historical and Revision Notes

Revised

Section

Source (U.S. Code)

Source (Statutes at Large)

3701(a)

41:253b(a).

June 30, 1949, ch. 288, title III, § 303B(a), (b), as added Pub. L. 98–369, title VII, § 2711(a)(2), July 18, 1984, 98 Stat. 1179; Pub. L. 103–355, title I, § 1061(c)(1), Oct. 13, 1994, 108 Stat. 3267.

3701(b)

41:253b(b).

Statutory Notes and Related SubsidiariesUse of Lowest Price Technically Acceptable Source Selection Process

Pub. L. 115–232, div. A, title VIII, § 880, Aug. 13, 2018, 132 Stat. 1909, as amended by Pub. L. 116–92, div. A, title VIII, § 806(a)(2), Dec. 20, 2019, 133 Stat. 1485; Pub. L. 118–159, div. A, title VIII, § 822, Dec. 23, 2024, 138 Stat. 1983, provided that:“(a)Statement of Policy.—It shall be the policy of the United States Government to avoid using lowest price technically acceptable source selection criteria in circumstances that would deny the Government the benefits of cost and technical tradeoffs in the source selection process.“(b)Revision of Federal Acquisition Regulation.—Not later than 120 days after the date of the enactment of this Act [Aug. 13, 2018], the Federal Acquisition Regulation shall be revised to require that, for solicitations issued on or after the date that is 120 days after the date of the enactment of this Act, lowest price technically acceptable source selection criteria are used only in situations in which—“(1) an executive agency is able to comprehensively and clearly describe the minimum requirements expressed in terms of performance objectives, measures, and standards that will be used to determine acceptability of offers;“(2) the executive agency would realize no, or minimal, value from a contract proposal exceeding the minimum technical or performance requirements set forth in the request for proposal;“(3) the proposed technical approaches will require no, or minimal, subjective judgment by the source selection authority as to the desirability of one offeror’s proposal versus a competing proposal;“(4) the executive agency has a high degree of confidence that a review of technical proposals of offerors other than the lowest bidder would not result in the identification of factors that could provide value or benefit to the executive agency;“(5) the contracting officer has included a justification for the use of a lowest price technically acceptable evaluation methodology in the contract file; and“(6) the executive agency has determined that the lowest price reflects full life-cycle costs, including for operations and support.“(c)Avoidance of Use of Lowest Price Technically Acceptable Source Selection Criteria in Certain Procurements.—To the maximum extent practicable, the use of lowest price technically acceptable source selection criteria shall be avoided in the case of a procurement that is predominately for the acquisition of—“(1) information technology services, cybersecurity services, systems engineering and technical assistance services, advanced electronic testing, audit or audit readiness services, health care services and records, telecommunications devices and services, munitions response services, or other knowledge-based professional services;“(2) personal protective equipment; or“(3) knowledge-based training or logistics services in contingency operations or other operations outside the United States, including in Afghanistan or Iraq.“(d)Definitions.—In this section:“(1)Executive agency.—The term ‘executive agency’ has the meaning given that term in section 102 of title 40, United States Code, except that the term does not include the Department of Defense.“(2)Contingency operation.—The term ‘contingency operation’ has the meaning given that term in section 101 of title 10, United States Code.“(3)Appropriate congressional committees.—The term ‘appropriate congressional committees’ means the Committee on Oversight and Government Reform [now Committee on Oversight and Accountability] of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate.”

Congressional Statement of Purpose

Pub. L. 98–577, title I, § 101, Oct. 30, 1984, 98 Stat. 3066, provided that: “The purposes of this Act [see Tables for classification] are to—“(1) eliminate procurement procedures and practices that unnecessarily inhibit full and open competition for contracts;“(2) promote the use of contracting opportunities as a means to expand the industrial base of the United States in order to ensure adequate responsive capability of the economy to the increased demands of the Government in times of national emergency; and“(3) foster opportunities for the increased participation in the competitive procurement process of small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals.”

Executive DocumentsEx. Ord. No. 12979. Agency Procurement Protests

Ex. Ord. No. 12979, Oct. 25, 1995, 60 F.R. 55171, provided:

By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to ensure effective and efficient expenditure of public funds and fair and expeditious resolution of protests to the award of Federal procurement contracts, it is hereby ordered as follows:

Section 1. Heads of executive departments and agencies (“agencies”) engaged in the procurement of supplies and services shall prescribe administrative procedures for the resolution of protests to the award of their procurement contracts as an alternative to protests in fora outside the procuring agencies. Procedures prescribed pursuant to this order shall:

(a) emphasize that whenever conduct of a procurement is contested, all parties should use their best efforts to resolve the matter with agency contracting officers;

(b) to the maximum extent practicable, provide for inexpensive, informal, procedurally simple, and expeditious resolution of protests, including, where appropriate and as permitted by law, the use of alternative dispute resolution techniques, third party neutrals, and another agency’s personnel;

(c) allow actual or prospective bidders or offerors whose direct economic interests would be affected by the award or failure to award the contract to request a review, at a level above the contracting officer, of any decision by a contracting officer that is alleged to have violated a statute or regulation and, thereby, caused prejudice to the protester; and

(d) except where immediate contract award or performance is justified for urgent and compelling reasons or is determined to be in the best interest of the United States, prohibit award or performance of the contract while a timely filed protest is pending before the agency. To allow for the withholding of a contract award or performance, the agency must have received notice of the protest within either 10 calendar days after the contract award or 5 calendar days after the bidder or offeror who is protesting the contract award was given the opportunity to be debriefed by the agency, whichever date is later.

Sec. 2. The Administrator for Federal Procurement Policy shall: (a) work with the heads of executive agencies to provide policy guidance and leadership necessary to implement provisions of this order; and

(b) review and evaluate agency experience and performance under this order, and report on any findings to the President within 2 years from the date of this order.

Sec. 3. The Administrator of General Services, the Secretary of Defense, and the Administrator of the National Aeronautics and Space Administration, in coordination with the Office of Federal Procurement Policy, shall amend the Federal Acquisition Regulation, 48 C.F.R. 1, within 180 days of the date of this order to further the purposes of this order.

William J. Clinton.
Notes of Decisions
Cited in 12 cases (6 in the last 5 years), 2011–2026 · leading case: Bahrain Mar. & Mercantile Int'l Bsc (C) v. United States, 118 Fed. Cl. 462 (Fed. Cl. 2014).
Bahrain Mar. & Mercantile Int'l Bsc (C) v. United States, 118 Fed. Cl. 462 (Fed. Cl. 2014). “In reviewing proposals submitted in response to a solicitation, applicable law requires the agency must conduct an evaluation and make an award “based solely on the factors specified in the solicitation.”
Rotech Healthcare, Inc. v. United States, 121 Fed. Cl. 387 (Fed. Cl. 2015). “” 41 U.S.C. § 3701 (a); see also 48 C.F.R. § 15.”
IBM Corp. v. United States, 101 Fed. Cl. 746 (Fed. Cl. 2011). “IBM argues that DVA introduced a new evaluation factor not set forth in the Solicitation, specifically whether the teaming agreements were unilateral or bilateral, and was required to limit itself to considering whether a teaming agreement was enforceable pursuant to 41 U.S.C. §…”
Logistics Health, Inc. v. United States (Fed. Cl. 2021). · cites it 6× “-Intervenor’s Cross-MJAR at 39 (citing 41 U.S.C. § 3701 (a)). QTC explains plaintiff’s argument “that the Agency should have assessed best value by disregarding the 12-month base period that the RFP required the offerors to price” must fail because it requires the government to…”
Esimplicity, Inc. v. United States (Fed. Cl. 2022). · cites it 2× “I conclude that the file size limitation was an unstated criterion, and that the Navy therefore acted arbitrarily and capriciously when it rejected eSimplicity’s proposal.”
Technatomy Corp. v. United States (Fed. Cl. 2024). · cites it 2× “41 U.S.C. § 3701 (a) (“An executive agency shall evaluate sealed bids and competitive proposals, and award a contract, based solely on the factors specified in the solicitation.”
Mayvin, Inc v. United States (Fed. Cl. 2025). · cites it 2× “” See also 41 U.S.C. § 3701 (b) (“All . . . competitive proposals received in response to a solicitation may be rejected if the agency head determines that rejection is in the public interest.”
Am. Corr. Healthcare, Inc. v. United States (Fed. Cl. 2018). “They further contend that this proposition is consistent with the rule that procuring agencies must evaluate proposals “based solely on the factors specified in the solicitation,” 41 U.S.C. § 3701 (a); accord FAR 15.305(a), and with binding precedent from the United States Court…”
The Tolliver Grp., Inc. v. United States (Fed. Cl. 2020). “41 U.S.C. § 3701 (a) (“An executive agency shall evaluate sealed bids and competitive proposals, and award a contract, based solely on the factors specified in the solicitation.”
The Tolliver Grp., Inc. v. United States (Fed. Cl. 2020). “41 U.S.C. § 3701 (a) (“An executive agency shall evaluate sealed bids and competitive proposals, and award a contract, based solely on the factors specified in the solicitation.”
Konecranes Nuclear Equip. & Servs., LLC v. United States (Fed. Cl. 2023). “But Konecranes does not point to any language in the evaluation factors imposing any such requirement, only language in the statement of work.”
Rick Aviation, Inc. v. United States (Fed. Cl. 2026). “38, 47 (2009) (citations and quotations omitted); 41 U.S.C. § 3701 ; 48 C.F.R. § 15.305 . Procurement decisions that apply unstated evaluation criteria not found in a solicitation are arbitrary and capricious.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.