The first step in permitting auctions occurred in 1996 when the FAR Council issued a proposed rule providing simplified acquisition procedures for commercial item purchases exceeding $5 million. Among other things the new rule, intended to implement the Clinger-Cohen Act providing for a pilot program, would permit the CO to disclose during negotiations a price or other consideration an offeror would have to meet to remain competitive. The proposal would allow COs to use "alternative negotiations" or auctions but it was removed from the final rule following criticisms from attorney groups with a note to study and analyze the auction concept.
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