Overview
FAR 14.101 outlines the five-step procedural framework for sealed bidding, a rigid contracting method defined by public bid openings and awards based strictly on price and price-related factors.
Key Rules
- Non-Restrictive Specifications: Invitations for Bids (IFBs) must be clear and complete, expressly prohibiting any unnecessarily restrictive requirements that limit competition.
- Adequate Publicizing: The government must provide prospective bidders sufficient time to prepare and submit bids through public distribution and posting.
- Sealed Submission: Bids must remain sealed until the specific time and place designated for public opening.
- Prohibition on Discussions: Unlike other procurement methods, bids must be evaluated without any negotiations or discussions with the bidders.
- Award Criteria: The contract must be awarded to a responsible bidder whose conforming bid is the most advantageous to the government, considering only price and the price-related factors specified in the IFB.
Practical Implications
- Price-Driven Competition: Because there are no discussions, bidders must ensure their initial submission is their best and most accurate offer; there is no opportunity to clarify or "fix" a bid after opening.
- Rigid Compliance: A bid that fails to conform to the IFB requirements must be rejected, as the government cannot negotiate terms to bring a non-conforming bid into compliance.