Which FAR section discusses the authority to split the difference in contract negotiations?

FAR 15.405 specifically addresses the authority and procedures related to negotiations, including aspects such as the concept of splitting the difference. This practice, commonly utilized in negotiations, is a compromise technique where both parties agree to adjust their positions toward a midpoint solution. It is particularly significant in contract negotiation scenarios as it can help expedite the negotiation process and foster collaboration between the parties involved.

Understanding the importance of FAR 15.405 reinforces key concepts in contract negotiation strategies. While other sections deal with various aspects of contracting procedures—such as general principles, cost analysis, and responsibilities—they do not focus specifically on the negotiation tactics outlined in FAR 15.405, making this section crucial for those looking to understand formal negotiation authority and processes.