FAR Part 14 Sealed Bidding. Contents Subpart 14.1 -- Use of Sealed Bidding Subpart 14.1 -- Use of...

FAR Part 14FAR Part 14Sealed BiddingSealed Bidding

ContentsContents

Subpart 14.1 -- Use of Sealed BiddingSubpart 14.1 -- Use of Sealed Bidding

Subpart 14.3 -- Submission of BidsSubpart 14.3 -- Submission of Bids

Subpart 14.4 -- Opening of Bids and Award of Subpart 14.4 -- Opening of Bids and Award of ContractContract

Subpart 14.5 -- Two-Step Sealed BiddingSubpart 14.5 -- Two-Step Sealed Bidding

Subpart 14.1 -- Use of Sealed Subpart 14.1 -- Use of Sealed BiddingBidding

Sealed bidding is a method of contracting that employs Sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. The competitive bids, public opening of bids, and awards. The following steps are involved:following steps are involved: Preparation of invitations for bidsPreparation of invitations for bids Publicizing the invitation for bids. Publicizing the invitation for bids. Submission of bids. Submission of bids. Evaluation of bids. Bids shall be evaluated without discussions.Evaluation of bids. Bids shall be evaluated without discussions. Contract award. Contract award.

Contracting officers shall solicit sealed bids if –Contracting officers shall solicit sealed bids if – Time permits the solicitation, submission, and evaluation of sealed Time permits the solicitation, submission, and evaluation of sealed

bids;bids; The award will be made on the basis of price and other price-related The award will be made on the basis of price and other price-related

factors;factors; It is not necessary to conduct discussions with the responding It is not necessary to conduct discussions with the responding

offerors about their bids; andofferors about their bids; and There is a reasonable expectation of receiving more than one sealed There is a reasonable expectation of receiving more than one sealed

bidbid

Subpart 14.2 -- Subpart 14.2 -- Solicitation of BidsSolicitation of Bids

Uniform contract format or Simplified format may Uniform contract format or Simplified format may be usedbe used Must check (x) block for IFB on Offer and AwardMust check (x) block for IFB on Offer and Award

Must include description or specifications for Must include description or specifications for product/service solicited.product/service solicited.

Clauses and Provisions – insert as prescribedClauses and Provisions – insert as prescribed 52.214-4, False Statements in Bids52.214-4, False Statements in Bids 2.214-5, Submission of Bids2.214-5, Submission of Bids 52.214-6, Explanation to Prospective Bidders 52.214-6, Explanation to Prospective Bidders 52.214-7, Late Submissions, Modifications, and 52.214-7, Late Submissions, Modifications, and

Withdrawals of BidsWithdrawals of Bids 52.214-10, Contract Award - Sealed Bidding or 52.214-52.214-10, Contract Award - Sealed Bidding or 52.214-

19, Contract Award -- Sealed Bidding -- Construction,19, Contract Award -- Sealed Bidding -- Construction,


Clauses and Provisions (Con’t.)Clauses and Provisions (Con’t.) 52.214-12, Preparation of Bids or 52.214-18, 52.214-12, Preparation of Bids or 52.214-18,

Preparation of Bids -- ConstructionPreparation of Bids -- Construction 52.214-13, Telegraphic Bids52.214-13, Telegraphic Bids 52.214-14, Place of Performance -- Sealed Bidding52.214-14, Place of Performance -- Sealed Bidding 52.214-15, Period for Acceptance of Bids52.214-15, Period for Acceptance of Bids 52.214-22, Evaluation of Bids for Multiple Awards,52.214-22, Evaluation of Bids for Multiple Awards, 52.214-31, Facsimile Bids52.214-31, Facsimile Bids 52.214-34, Submission of Offers in the English 52.214-34, Submission of Offers in the English

LanguageLanguage 52.214-35, Submission of Offers in U.S. Currency52.214-35, Submission of Offers in U.S. Currency 52.214-26, Audit and Records -- Sealed Bidding,52.214-26, Audit and Records -- Sealed Bidding, 52.214-28, Price Related Factors52.214-28, Price Related Factors


Rules for soliciting bidsRules for soliciting bids Bid time – Reasonable time consistent with needs of the Government – Bid time – Reasonable time consistent with needs of the Government –

typically 30 days if synopsizing in FBO (>25K)typically 30 days if synopsizing in FBO (>25K) Announcement / PublicizingAnnouncement / Publicizing

Using the FBOUsing the FBO Posting in public placePosting in public place Trade journals/publicationsTrade journals/publications Pre-solicitation notice leading to a bidders list. Pre-solicitation notice leading to a bidders list.

Method for SolicitationMethod for Solicitation Direct mailDirect mail Copy available for reproduction or distributionCopy available for reproduction or distribution Electronic commerceElectronic commerce

Means of responseMeans of response Written bid in sealed envelope most commonWritten bid in sealed envelope most common Electronic commerceElectronic commerce Fax or telegraphic if allowed by COFax or telegraphic if allowed by CO


Pre-Bid Meeting may be conducted to clarify solicitation Pre-Bid Meeting may be conducted to clarify solicitation requirementsrequirements Not an opportunity to prop-up a flawed solicitationNot an opportunity to prop-up a flawed solicitation

Amendments to solicitation – SF30Amendments to solicitation – SF30 May need to extend bid due date to allow time to incorporate May need to extend bid due date to allow time to incorporate

information in amendmentinformation in amendment

Solicitation may be cancelled before bid openingSolicitation may be cancelled before bid opening Announce in FBOAnnounce in FBO Bids received shall be returned unopenedBids received shall be returned unopened Prospective bidders should be given the right to bid on any re-Prospective bidders should be given the right to bid on any re-

solicitationsolicitation

Communications with biddersCommunications with bidders Any information provided to one bidder must be provided to all – Any information provided to one bidder must be provided to all –

preferably at the same time.preferably at the same time. ProhibitionProhibition

Subpart 14.3 -- Subpart 14.3 -- Submission of BidsSubmission of Bids

Means of deliveryMeans of delivery Postal / Commercial deliveryPostal / Commercial delivery Hand deliveredHand delivered Electronic submittal only if permitted by CO Electronic submittal only if permitted by CO

(e.g., fax, telephone, telegraph.(e.g., fax, telephone, telegraph.

Bids must be timelyBids must be timely Must arrive on or before the time specified at Must arrive on or before the time specified at

the address or location identified in the the address or location identified in the solicitation documents.solicitation documents.

Time and date stamped by Government Time and date stamped by Government

Subpart 14.3 -- Submission of Subpart 14.3 -- Submission of BidsBids

Bids must be responsiveBids must be responsive Must comply in all material respects with the invitation for bidsMust comply in all material respects with the invitation for bids Bids should be filled out, executed, and submitted in Bids should be filled out, executed, and submitted in

accordance with the instructions in the invitationaccordance with the instructions in the invitation Acknowledgement of amendmentsAcknowledgement of amendments Bid bond (if required)Bid bond (if required) All attachments or supporting documentation includedAll attachments or supporting documentation included

Must be properly submittedMust be properly submitted E-mail, fax and telegraphic bids need not be accepted if not E-mail, fax and telegraphic bids need not be accepted if not

specified in the solicitationspecified in the solicitation

Modification or withdrawal of bidsModification or withdrawal of bids Permitted at any time up to the bid due (“closing”) date/timePermitted at any time up to the bid due (“closing”) date/time If time not specified then bids close at 4:30pm on the If time not specified then bids close at 4:30pm on the

prescribed dateprescribed date

Subpart 14.3 -- Subpart 14.3 -- Submission of BidsSubmission of Bids

Late Bids, Modifications and withdrawalsLate Bids, Modifications and withdrawals Held unopened until after awardHeld unopened until after award Government must notify bidders of late bidGovernment must notify bidders of late bid Bid bond is returned.Bid bond is returned. CO may choose to accept a late bid ifCO may choose to accept a late bid if

Doing so does not delay the awardDoing so does not delay the award If it was transmitted through an electronic commerce If it was transmitted through an electronic commerce

method authorized by the IFB, it was received at the method authorized by the IFB, it was received at the initial point of entry to the Government infrastructure initial point of entry to the Government infrastructure not later than 5:00 p.m. one working day prior to the not later than 5:00 p.m. one working day prior to the date specified for receipt of bids;date specified for receipt of bids;

There is acceptable evidence to establish that it was There is acceptable evidence to establish that it was received at the Government installation designated received at the Government installation designated for receipt of bids and was under the Government’s for receipt of bids and was under the Government’s control prior to the time set for receipt of bidscontrol prior to the time set for receipt of bids

Subpart 14.4 -- Opening of Subpart 14.4 -- Opening of Bids and Award of ContractBids and Award of Contract

Receipt of proposalsReceipt of proposals Must be secured prior to bid opening – held in Must be secured prior to bid opening – held in

secure file cabinet, safe, or Bid Boxsecure file cabinet, safe, or Bid Box Procedure for inadvertently opened proposals Procedure for inadvertently opened proposals Procedure to open bids if identifying Procedure to open bids if identifying

information not on exterior of bid package.information not on exterior of bid package.

Bid opening is a public eventBid opening is a public event Bids opened by the Bid Opening OfficerBids opened by the Bid Opening Officer Bid opening is publicly announced (usually in Bid opening is publicly announced (usually in

the solicitation or pre-solicitation notice on the solicitation or pre-solicitation notice on FBO)FBO)

Subpart 14.4 -- Opening Subpart 14.4 -- Opening of Bids and Award of of Bids and Award of

ContractContract Opening ProcessOpening Process

Opening official announcement (greeting, the time is ___, Opening official announcement (greeting, the time is ___, Solicitation number/purpose, bidding is now closed, Solicitation number/purpose, bidding is now closed, introductions)introductions)

Usually assisted by abstractor Usually assisted by abstractor Each bid is numbered and opened in turnEach bid is numbered and opened in turn Each bid is examined for responsiveness (e.g., were Each bid is examined for responsiveness (e.g., were

amendments acknowledged, bid bond present, etc.)amendments acknowledged, bid bond present, etc.) Each bid is read aloud and recorded by the abstractorEach bid is read aloud and recorded by the abstractor Government estimate is opened, read aloud, and recordedGovernment estimate is opened, read aloud, and recorded Opening official announces that the bid opening is complete. No Opening official announces that the bid opening is complete. No

statement need be made concerning the winner or apparent statement need be made concerning the winner or apparent winner at this time.winner at this time. Bids speak for themselvesBids speak for themselves Bids are subject to review prior to awardBids are subject to review prior to award

Opening official signs the abstract and a copy is available for Opening official signs the abstract and a copy is available for public inspection.public inspection.


ContractContract Rejection of bidsRejection of bids

IndividualIndividual does not conform to the applicable specifications does not conform to the applicable specifications fails to conform to the delivery schedulefails to conform to the delivery schedule conditioned (all-or-none is OK) that affects price, quality or delivery.conditioned (all-or-none is OK) that affects price, quality or delivery. unreasonable as to price (in total or for an individual line item)unreasonable as to price (in total or for an individual line item) materially unbalancedmaterially unbalanced bidder deemed not responsible or debarredbidder deemed not responsible or debarred bid security not provide or improperbid security not provide or improper

AllAll Government requirement no longer existsGovernment requirement no longer exists All bids exceed the Government estimate (i.e., are not reasonable)All bids exceed the Government estimate (i.e., are not reasonable) Specifications revised or inadequate Specifications revised or inadequate No responsive bid from a responsible bidderNo responsive bid from a responsible bidder Collusion among biddersCollusion among bidders Less expensive if performed by Government (A-76)Less expensive if performed by Government (A-76) In the interest of the GovernmentIn the interest of the Government


ContractContract Waiver of minor informalities by COWaiver of minor informalities by CO

Matter of form rather than substanceMatter of form rather than substance Does not prejudice other bidderDoes not prejudice other bidder Examples: failed to acknowledge amendment, did not sign bid, etc.Examples: failed to acknowledge amendment, did not sign bid, etc.

Mistakes in bids – Before awardMistakes in bids – Before award Obvious clerical errors – correct through verificationObvious clerical errors – correct through verification Cannot be used to cure non-responsive bidsCannot be used to cure non-responsive bids Correction may be initiated by bidder after opening but subject to Correction may be initiated by bidder after opening but subject to

significant restrictions – especially if it would displace lower bidder.significant restrictions – especially if it would displace lower bidder. Agency may prohibit low bidder from withdrawing (low) bid but may Agency may prohibit low bidder from withdrawing (low) bid but may

allow bidder to correct.allow bidder to correct. Bidders notified of mistakes and asked to correct through Bidders notified of mistakes and asked to correct through

‘verification of bid’ process‘verification of bid’ process Price is exceptionally low compared to other bidders and Price is exceptionally low compared to other bidders and

Government estimateGovernment estimate Other information that the CO believes indicates an error in the bid.Other information that the CO believes indicates an error in the bid.


ContractContract Mistakes in Bids – After AwardMistakes in Bids – After Award

Governed by FAR 33.2 (Disputes and Appeals)Governed by FAR 33.2 (Disputes and Appeals) Decision documented via CO’s Final DecisionDecision documented via CO’s Final Decision Work continues without interruption while issue is Work continues without interruption while issue is

resolvedresolved Actions include rescission or reforming to Actions include rescission or reforming to

Eliminate item(s) involvedEliminate item(s) involved Adjust the contract price – but may not displace next low Adjust the contract price – but may not displace next low

bidderbidder Clear and convincing Evidence that a mistake in bid was Clear and convincing Evidence that a mistake in bid was

made. In addition, it must be clear that the mistake wasmade. In addition, it must be clear that the mistake was—— Mutual, orMutual, or If unilaterally made by the contractor, so apparent as to If unilaterally made by the contractor, so apparent as to

have charged the contracting officer with notice of the have charged the contracting officer with notice of the probability of the mistake.probability of the mistake.


ContractContract Evaluation of bidsEvaluation of bids

Responsive to the solicitationResponsive to the solicitation Cost and cost related factorsCost and cost related factors

Single vs. multiple awardsSingle vs. multiple awards Prompt payment discountsPrompt payment discounts ScheduleSchedule

Additive itemsAdditive items Fair and reasonable priceFair and reasonable price Balanced pricingBalanced pricing Determination of bidder responsibilityDetermination of bidder responsibility Equal low bids resolved by 14.408-6 with preference to small businessEqual low bids resolved by 14.408-6 with preference to small business

Award made using the appropriate document (SF 1447, SF 33 SF26, SF Award made using the appropriate document (SF 1447, SF 33 SF26, SF 1442, OF 347) Note: the bid constitutes an offer which may be accepted 1442, OF 347) Note: the bid constitutes an offer which may be accepted by the Government to form a binding contract.by the Government to form a binding contract.

Notice of AwardNotice of Award FBOFBO To bidderTo bidder

•• Subpart 14.5 -- Two-Step Subpart 14.5 -- Two-Step Sealed BiddingSealed Bidding

Step One Step One Request for, submission, evaluation, and (if Request for, submission, evaluation, and (if

necessary) discussion of a technical proposalnecessary) discussion of a technical proposal Resolves conformity to the technical Resolves conformity to the technical

requirements and any questions concerning requirements and any questions concerning the specificationsthe specifications

Step TwoStep Two Sealed bids as per the aboveSealed bids as per the above

FAR Part 14 Sealed Bidding. Contents Subpart 14.1 -- Use of Sealed Bidding Subpart 14.1 -- Use of...

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