1. FAR Part 14
Sealed Bidding

2. Contents Subpart 14.1 -- Use of Sealed Bidding
Subpart Submission of Bids
Subpart Opening of Bids and Award of Contract
Subpart Two-Step Sealed Bidding

3. Subpart 14.1 -- Use of Sealed Bidding
Sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. The following steps are involved:
Preparation of invitations for bids
Publicizing the invitation for bids.
Submission of bids.
Evaluation of bids. Bids shall be evaluated without discussions.
Contract award.
Contracting officers shall solicit sealed bids if –
Time permits the solicitation, submission, and evaluation of sealed bids;
The award will be made on the basis of price and other price-related factors;
It is not necessary to conduct discussions with the responding offerors about their bids; and
There is a reasonable expectation of receiving more than one sealed bid

4. Subpart 14.2 -- Solicitation of Bids
Uniform contract format or Simplified format may be used
Must check (x) block for IFB on Offer and Award
Must include description or specifications for product/service solicited.
Clauses and Provisions – insert as prescribed
, False Statements in Bids
, Submission of Bids
, Explanation to Prospective Bidders
, Late Submissions, Modifications, and Withdrawals of Bids
, Contract Award - Sealed Bidding or , Contract Award -- Sealed Bidding -- Construction,

5. Subpart 14.2 -- Solicitation of Bids
Clauses and Provisions (Con’t.)
, Preparation of Bids or , Preparation of Bids -- Construction
, Telegraphic Bids
, Place of Performance -- Sealed Bidding
, Period for Acceptance of Bids
, Evaluation of Bids for Multiple Awards,
, Facsimile Bids
, Submission of Offers in the English Language
, Submission of Offers in U.S. Currency
, Audit and Records -- Sealed Bidding,
, Price Related Factors

6. Subpart 14.2 -- Solicitation of Bids
Rules for soliciting bids
Bid time – Reasonable time consistent with needs of the Government – typically 30 days if synopsizing in FBO (>25K)
Announcement / Publicizing
Using the FBO
Posting in public place
Trade journals/publications
Pre-solicitation notice leading to a bidders list.
Method for Solicitation
Direct mail
Copy available for reproduction or distribution
Electronic commerce
Means of response
Written bid in sealed envelope most common
Fax or telegraphic if allowed by CO

7. Subpart 14.2 -- Solicitation of Bids
Pre-Bid Meeting may be conducted to clarify solicitation requirements
Not an opportunity to prop-up a flawed solicitation
Amendments to solicitation – SF30
May need to extend bid due date to allow time to incorporate information in amendment
Solicitation may be cancelled before bid opening
Announce in FBO
Bids received shall be returned unopened
Prospective bidders should be given the right to bid on any re-solicitation
Communications with bidders
Any information provided to one bidder must be provided to all – preferably at the same time.
Prohibition

8. Subpart 14.3 -- Submission of Bids
Means of delivery
Postal / Commercial delivery
Hand delivered
Electronic submittal only if permitted by CO (e.g., fax, telephone, telegraph.
Bids must be timely
Must arrive on or before the time specified at the address or location identified in the solicitation documents.
Time and date stamped by Government

9. Subpart 14.3 -- Submission of Bids
Bids must be responsive
Must comply in all material respects with the invitation for bids
Bids should be filled out, executed, and submitted in accordance with the instructions in the invitation
Acknowledgement of amendments
Bid bond (if required)
All attachments or supporting documentation included
Must be properly submitted
, fax and telegraphic bids need not be accepted if not specified in the solicitation
Modification or withdrawal of bids
Permitted at any time up to the bid due (“closing”) date/time
If time not specified then bids close at 4:30pm on the prescribed date

10. Subpart 14.3 -- Submission of Bids
Late Bids, Modifications and withdrawals
Held unopened until after award
Government must notify bidders of late bid
Bid bond is returned.
CO may choose to accept a late bid if
Doing so does not delay the award
If it was transmitted through an electronic commerce method authorized by the IFB, it was received at the initial point of entry to the Government infrastructure not later than 5:00 p.m. one working day prior to the date specified for receipt of bids;
There is acceptable evidence to establish that it was received at the Government installation designated for receipt of bids and was under the Government’s control prior to the time set for receipt of bids

11. Subpart 14.4 -- Opening of Bids and Award of Contract
Receipt of proposals
Must be secured prior to bid opening – held in secure file cabinet, safe, or Bid Box
Procedure for inadvertently opened proposals
Procedure to open bids if identifying information not on exterior of bid package.
Bid opening is a public event
Bids opened by the Bid Opening Officer
Bid opening is publicly announced (usually in the solicitation or pre-solicitation notice on FBO)

12. Subpart 14.4 -- Opening of Bids and Award of Contract
Opening Process
Opening official announcement (greeting, the time is ___, Solicitation number/purpose, bidding is now closed, introductions)
Usually assisted by abstractor
Each bid is numbered and opened in turn
Each bid is examined for responsiveness (e.g., were amendments acknowledged, bid bond present, etc.)
Each bid is read aloud and recorded by the abstractor
Government estimate is opened, read aloud, and recorded
Opening official announces that the bid opening is complete. No statement need be made concerning the winner or apparent winner at this time.
Bids speak for themselves
Bids are subject to review prior to award
Opening official signs the abstract and a copy is available for public inspection.

13. Subpart 14.4 -- Opening of Bids and Award of Contract
Rejection of bids
Individual
does not conform to the applicable specifications
fails to conform to the delivery schedule
conditioned (all-or-none is OK) that affects price, quality or delivery.
unreasonable as to price (in total or for an individual line item)
materially unbalanced
bidder deemed not responsible or debarred
bid security not provide or improper
All
Government requirement no longer exists
All bids exceed the Government estimate (i.e., are not reasonable)
Specifications revised or inadequate
No responsive bid from a responsible bidder
Collusion among bidders
Less expensive if performed by Government (A-76)
In the interest of the Government

14. Subpart 14.4 -- Opening of Bids and Award of Contract
Waiver of minor informalities by CO
Matter of form rather than substance
Does not prejudice other bidder
Examples: failed to acknowledge amendment, did not sign bid, etc.
Mistakes in bids – Before award
Obvious clerical errors – correct through verification
Cannot be used to cure non-responsive bids
Correction may be initiated by bidder after opening but subject to significant restrictions – especially if it would displace lower bidder.
Agency may prohibit low bidder from withdrawing (low) bid but may allow bidder to correct.
Bidders notified of mistakes and asked to correct through ‘verification of bid’ process
Price is exceptionally low compared to other bidders and Government estimate
Other information that the CO believes indicates an error in the bid.

15. Subpart 14.4 -- Opening of Bids and Award of Contract
Mistakes in Bids – After Award
Governed by FAR 33.2 (Disputes and Appeals)
Decision documented via CO’s Final Decision
Work continues without interruption while issue is resolved
Actions include rescission or reforming to
Eliminate item(s) involved
Adjust the contract price – but may not displace next low bidder
Clear and convincing Evidence that a mistake in bid was made. In addition, it must be clear that the mistake was—
Mutual, or
If unilaterally made by the contractor, so apparent as to have charged the contracting officer with notice of the probability of the mistake.

16. Subpart 14.4 -- Opening of Bids and Award of Contract
Evaluation of bids
Responsive to the solicitation
Cost and cost related factors
Single vs. multiple awards
Prompt payment discounts
Schedule
Additive items
Fair and reasonable price
Balanced pricing
Determination of bidder responsibility
Equal low bids resolved by with preference to small business
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 by the Government to form a binding contract.
Notice of Award
FBO
To bidder

17. • Subpart 14.5 -- Two-Step Sealed Bidding
Step One
Request for, submission, evaluation, and (if necessary) discussion of a technical proposal
Resolves conformity to the technical requirements and any questions concerning the specifications
Step Two
Sealed bids as per the above