Negotiation Acquisition Release (NAR)

A Negotiation Acquisition Release (NAR) is a formal internal authorization that permits a contracting officer to begin negotiations with a contractor for a specific contractual action. It serves as documented approval to proceed with negotiated procurement discussions. The NAR does not award a contract — it authorizes negotiation activity.

What Is a Negotiation Acquisition Release (NAR)?

A Negotiation Acquisition Release (NAR) is a formal internal authorization that permits a contracting officer to begin negotiations with a contractor for a specific contractual action.

It serves as documented approval to proceed with negotiated procurement discussions.

The NAR does not award a contract. It authorizes negotiation activity.

A NAR typically appears after proposal evaluation but before final price or terms are negotiated, placing it in the pre-award phase of negotiated procurements.

Key Characteristics of a NAR

Formal approval to initiate contract negotiations

Identifies the specific procurement or contractual action

Names the contractor or competitive range participants

Defines negotiation scope and authority limits

Includes required internal approvals and signatures

For example, if an agency intends to negotiate pricing adjustments, technical revisions, or final terms with an offeror, the NAR authorizes those discussions. It establishes the negotiation boundaries and ensures the contracting officer is acting within delegated authority.

Regulatory Framework

Negotiated procurements are governed by Federal Acquisition Regulation (FAR) Part 15. While the FAR does not always use the exact term Negotiation Acquisition Release, agencies may require internal documentation to authorize negotiations consistent with:

FAR Part 15.306 — Exchanges with Offerors

FAR Part 1.602 — Contracting Officer Authority

Agency-specific acquisition policies and delegation thresholds

Some agencies may use different terminology for similar internal approval documents.

Why NARs Matter for Contractors

Receipt of negotiation notice following a NAR signals that the government is seriously evaluating an award — the contractor is within the competitive range or selected for discussions. The negotiation phase affects final pricing, performance terms, contract type, and risk allocation, making it a critical stage for contractors to prepare carefully.

Contractors must ensure pricing, cost data, and representations are accurate — errors at this stage can delay award or create audit risk

Prepared contractors use this stage to clarify scope and protect margins

A NAR does not guarantee contract award — negotiations may fail, pricing may be deemed unreasonable, or discussions may reopen with other offerors

Common Misconceptions About NARs

A NAR guarantees contract award.

It does not. It only authorizes negotiation activity. Award depends on final negotiated terms and compliance.

All contracts require a NAR.

It is typically associated with negotiated procurements under FAR Part 15, not sealed bidding.

Contractors issue the NAR.

It is an internal government authorization document issued by agency acquisition officials.

Frequently Asked Questions

Is a Negotiation Acquisition Release required for every procurement?

No. It is typically used in negotiated acquisitions under FAR Part 15, particularly when formal negotiations are required.

Does receiving negotiation notice mean I have won the contract?

No. It means the government is engaging in discussions. Award depends on final negotiated terms and compliance.

Who approves a NAR?

Approval usually comes from authorized acquisition officials within the agency, depending on internal delegation thresholds.

Can negotiations begin without a NAR?

In most agencies, no. Contracting officers must operate within delegated authority and documented approval procedures.