Which type of contract is specifically mentioned in FAR Part 6 as requiring competition requirements?

The selection of a $1M contract for services as the answer is correct because the Federal Acquisition Regulation (FAR) Part 6 emphasizes the importance of competition in the procurement process. In general, FAR Part 6 focuses on the requirement to promote full and open competition and outlines the situations where you must seek competition for contract awards.

Specifically, higher thresholds for competition are often noted for service contracts, particularly those that exceed the simplified acquisition threshold, which as of recent updates typically reference amounts around $250,000 or above. Contracts for services tend to have stricter competition requirements due to the need to ensure quality, cost-effectiveness, and the best value for the government. The $1M threshold for a contract for services successfully highlights the need for compliance with these competitive principles outlined in FAR, as anything above the threshold presents greater scrutiny and demands comprehensive justification if competition is not pursued.

While contracts for goods and construction also have their own requirements, the emphasis on competition aligns more closely with service contracts, particularly those valued at or above $1M, as they often involve more complex requirements and less standardized offerings compared to goods. Moreover, the amounts listed for goods and construction in the other options did not highlight unique thresholds specifically set out in FAR