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I am a Contract Specialist in an R&D office within a Government agency that awards many contracts off BAAs in accordance with FAR 35.016. The contract awards are always Firm Fixed Price (FFP) with the solicitation specifying a not-to-exceed (NTE) dollar limitation such that proposals typically come in at or just below the NTE price. Award is based on evaluation criteria that center on some variation of technical merit and importance to agency programs in accordance with FAR 35.016(e). While price reasonableness is reviewed, price is evaluated as pass/fail, based on whether the offeror prop