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Can Government Entity Compete Against a Private Entity?


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I had a Government Entity (county) submit a quotation in response to an RFQ for a commercial service. The county is registered in SAM and has a DUNS so I'm inclined to assume that they can receive a federal contract. I understand that for the purposes of set-asides they are considered "other than small". I know our office has awarded to the State in the past but it's always been under the authority of 6.302-1 (only one responsible source). I understand the issue of an uneven playing field as a Government entity is subsidized and doesn't have to worry about profit. My instincts say that it wouldn't be fair to allow them to compete for those reasons but doesn't the Government allow other non-profit (non-Government) organizations to compete against for-profit businesses and organizations?

My question is whether a Government entity (county, in this case) can compete against a private entity for a federal contract. If they can, what authority allows us to award to them? If they can’t, what regulation prohibits them from competing against a private entity and/or receiving a contract?

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I know of no regulation or law that prohibits competition between a government entity and private sector contractors, and I've seen it done.

There does not need to be a statutory authority allowing it, for it to be allowable.

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August's post seems exactly right, but there are many FAR references that assume government entities (like states, local governments, public universities) can contract with the federal government, including FAR 31.107 & 9.102.

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For what its worth,

I lost a contract many years ago to a government entity that bid less than the raw costs of the minimum required personnel at Wage Determination rates.

How ?

They got work-study students to do the work, and that was subsidized by grants from another governmental entity.

Fair or not, it was legal.

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