In federal contracting, what does the term "competition" refer to?

The term "competition" in federal contracting fundamentally refers to the requirement to obtain offers from multiple contractors. This concept is integral to ensuring that the procurement process is conducted fairly and provides the government with the best value. By soliciting bids from different contractors, the government can compare prices, technical capabilities, and overall project approaches, fostering an environment where various entities can participate in fulfilling government needs.

Promoting competition helps to drive down costs, increase innovation, and improve the quality of goods and services procured. It is a foundational principle in procurement practices emphasized in the Federal Acquisition Regulation (FAR) to ensure transparency and efficiency in government contracting.

The other choices do not encapsulate the essence of competition in federal contracting. Evaluating risks related to proposals pertains more to the assessment phase rather than competition itself. Negotiating pricing focuses on interactions with individual contractors rather than the broader context of soliciting multiple offers. Finally, selecting a single vendor based on past performance emphasizes final award decisions and does not reflect the competitive nature of the earlier stages of the procurement process.