What is the method used for competitive and noncompetitive acquisitions in contracting?

Contracting by Negotiation is a method used in both competitive and noncompetitive acquisitions because it allows procuring agencies flexibility in discussing terms, prices, and conditions with potential contractors. This approach is particularly beneficial when the requirements are complex, allowing for adjustments to be made based on contractor input or when specific qualifications are necessary that cannot be met through rigid bidding processes.

In competitive environments, this method encourages multiple suppliers to offer proposals, which can lead to better prices and terms for the contracting entity. In noncompetitive situations, contracting by negotiation provides the opportunity for agencies to directly engage with a specific contractor, ensuring that their unique needs are met through a tailored approach.

In contrast, sealed bidding is strictly a method for competitive acquisitions and involves submitting bids in a sealed format, which does not allow for negotiation after the bids are submitted. Two-step sealed bidding is a variation of sealed bidding used when it's difficult to define specifications, allowing for a two-phase process but still following a structured bidding approach. Micro-purchasing pertains to small purchases that can be made without formal competition and does not encompass the broader negotiation aspect.