Podcast Show Notes
2026-02-10 Federal Market Insights Episode 42 — Session Overview
WPI Podcast Episode 42 Summary
The Contracting Triangle
Solicitations can easily run 20, 50 or more pages. Some notices are classified as Synopsis/Solicitations and others are formal Request for Proposals. They are typically organized according to the standard government section layout.
There are a couple of ways to manage these behemoths – RFQs and RFPs. One is to break apart the document into its constituent parts as listed in FAR 15.204‑1 Uniform Contract Format See: https://www.acquisition.gov/far/15.204-1 The other is to look at the contract using the Contracting Triangle perspective.
Section A — Solicitation / Contract Form
Section B — Supplies or Services and Prices/Costs
Section C — Description / Specifications / Statement of Work
Section D — Packaging and Marking
Section E — Inspection and Acceptance
Section F — Deliveries or Performance
Section G — Contract Administration Data
Section H — Special Contract Requirements
Section I — Contract Clauses
Section J — List of Attachments
Section K — Representations and Certifications
Section L — Instructions, Conditions, and Notices to Offerors
Section M — Evaluation Factors for Award
The Contracting Triangle is a simplified model of these formal documents, and it helps a company identify what is most important or what requirements must be met to be awarded a contract. Triangles by their geometry are rigid structures. The same can be said for the elements of the contracting triangle. Together they create a sound and rigid framework for companies to use when looking at government contracts and determining whether they can reasonably move forward with the opportunity or if they should table the opportunity and look at others.
The three elements of the Contracting Triangle are – Responsibly, Fair and Reasonable (Pricing) and Terms and Conditions.
These are the three main questions that Contracting Officers must answer prior to awarding a contract.
Responsible – Responsibility is addressed in FAR Subpart 9.1
Subpart 9.1 – Responsible Prospective Contractors addresses the essential elements of responsibility and subpart 9.103 paragraphs (a) and (b) state just how critical being determined to be responsible is.
a) Purchases shall be made from, and contracts shall be awarded to, responsible prospective contractors only.
(b) No purchase or award shall be made unless the contracting officer makes an affirmative determination of responsibility. In the absence of information clearly indicating that the prospective contractor is responsible, the contracting officer shall make a determination of nonresponsibility.
Additionally, FAR 9.104 outlines several general elements involved in determining Responsibity of a contractor and/or subcontractor.
Being Responsible is the gate, if a company cannot demonstrate that it is responsible for the immediate opportunity all other efforts will fall short.
These are also parts with which all business should be familiar when attending conferences, outreach sessions and at meetings with a government representative or a Prime, next tier contractor. Don’t sell. All communications should be directed to a single goal of show the company is Responsible and gaining a better understanding of how they evaluate and determine when a company is responsible.
Read the requirements and their references closely. For example, the first general standard is financial responsibility and FAR 9.104 -1 (a) states Have adequate financial resources to perform the contract, or the ability to obtain them (see 9.104-3(a)); Notice the underlined portion and the following. Financial responsibility may not require having the money in a bank account. However, a company must be able to obtain what is required. The requirements go beyond making a general statement about loans and lines of credit. It is up to the offeror to provide substantial evidence.
The next element of the Contracting Triangle is Fair and Reasonable Prices.
The following are two FAR references that address this idea. The first is from FAR Part 13 Simplified Acquisition – FAR 13.106-3
“Basis for award. Before making award, the contracting officer must determine that the proposed price is fair and reasonable.”
The second is from Part 31 – Part 31 – Contract Cost Principles and Procedures
The first sentence of 31.201-3 states “A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person in the conduct of competitive business.”
As can be seen, the first two ideas of the Contracting Triangle are firmly rooted in the requirements – principles of the FAR.
That leaves the last element – Terms & Conditions. As is well known, only Part 52 of the FAR applies to Contractors. All the previous Parts provide guidance to Contracting Officers. While this is a fact, understanding requirements placed upon a Contracting Officer can help a company to understand what is important, actions to take and how to prepare.
FAR part 2 – Contract clause or “clause” means a term or condition used in contracts or in both solicitations and contracts, and applying after contract award or both before and after award. The Contracting Triangle provides a succinct but useful roadmap for companies interested in entering or expanding there efforts in the federal marketplace. Companies know they need to focus on being Responsible, providing products and/or services at a Fair and Reasonable Price and they must agree to and adhere to contract clauses.