FAR 25.106(c)(1)(ii) and (c)(2)(ii): should the critical-item price tests name the critical calculation expressly?

For end products that are critical items or contain critical components, 25.106(c)(1)(ii) and (c)(2)(ii) test the price against the low offer after addition of “the appropriate evaluation factor in accordance with paragraph (a) or (b) of this section”. Paragraph (b) gives the factors for end products that are not critical items. Paragraph (a)(1) directs use of the factors in paragraphs (b) and (c), paragraph (c)(1)(i) specifies the critical calculation, and (c)(2)(i)(B) expressly applies the factors in (c)(1). One reading takes the reference through (a) to the critical calculation. The other follows the alternative reference to (b). The FAR Overhaul Part 25 guide keeps the same references.

Consequence

The list of critical items at 25.105 is reserved, and no affected award has been established.

Proposed correction

Please consider whether (c)(1)(ii) and (c)(2)(ii) should identify the critical calculation expressly.

Jurisdiction

United States — federal

Act

Federal Acquisition Regulation (48 CFR chapter 1)

Place

FAR 25.106(c)(1)(ii) and (c)(2)(ii); FAR Overhaul Part 25 guide, same paragraphs

Record

Question of reading or data

Class

Question of reading or data

Where it arose

The text of the act

Arxo's conclusion

Confirmed

Official text

Unchanged at last check

Last checked

2026-10-29

Evidence

Pair of quotations. Quotations are verbatim from the official material; translations are ours and marked.

the appropriate evaluation factor in accordance with paragraph (a) or (b) of this section

Must use the evaluation factors in paragraphs (b) and (c) of this section

Determine the reasonableness of the cost of this offer by applying the evaluation factors listed in paragraph (c)(1) of this section to the low offer.

the appropriate evaluation factor in accordance with paragraph (a) or (b) of this section

How to check it without Arxo's tools

1. Open eCFR 48 CFR part 25 (currency through 2026-10-27) and find 48 CFR 25.106(c)(1)(ii) and (c)(2)(ii); 48 CFR 25.106(a)(1); 48 CFR 25.106(c)(2)(i)(B). Compare the text with the quotation above. A copy is kept in this register: 6a5372df63af691e-ecfr-48-25-2026-10-27.xml (SHA-256 6a5372df63af691e5c617813c3ee2b7042f890fc36a9542f132f161c3301cdf3, copy of the official file).
2. Open FAR Overhaul Part 25 (acquisition.gov) and find FAR Overhaul Part 25 guide, 25.106(c)(1)(ii) and (c)(2)(ii). Compare the text with the quotation above. A copy is kept in this register: 0b45716c3c938a1b-far-rfo-part25.html (SHA-256 0b45716c3c938a1b204b0fd9c43b7a874830a2ac46647be7c2e6672ddc98f642, copy of the official file).
3. The finding holds if the quoted passages read as shown and the comparison gives the result stated at the top of this page. If it does not, write to us with the record ID.

How this finding was made

AI agents read the official texts and compared the provisions, clauses and preambles; they also drafted this record. A person at Arxo approved the report before it was sent.

Responsible institutions

• FAR Council (General Services Administration, Federal Acquisition Policy Division) — author of the FAR

Reported to

Responses

No response recorded.

History

1. 2026-10-29Confirmed by Arxo
2. 2026-10-29Reported to FAR Council (General Services Administration, Federal Acquisition Policy Division) (e-mail)
3. 2026-10-31Entered in the register

Cite this record

Arxo Law, Arxo Findings Register, ARXO-2026-0240, https://arxo.io/findings/ARXO-2026-0240/ (status as of 2026-10-29). Data: ARXO-2026-0240.json.