Overview
FAR 14.209 establishes that Invitations for Bids (IFBs) should only be canceled prior to opening when it is clearly in the public interest, as cancellation results in a waste of resources for both the Government and private bidders.
Key Rules
- Standard for Cancellation: Cancellation is restricted to instances where it is "clearly in the public interest," such as when a requirement is eliminated or when necessary amendments are so extensive that a new invitation is more practical.
- Handling Physical Bids: If an IFB issued in hard copy is canceled, all bids received must be returned unopened to the bidders, and a notice must be sent to all prospective bidders.
- Handling Electronic Bids: For electronic IFBs, the Government must post a general notice, ensure received bids are never viewed, and purge all bid data from primary and backup storage systems.
- Notice Content: The notice of cancellation must include the IFB number and title, a brief explanation of the reason for cancellation, and, if applicable, an assurance that bidders will be notified of future resolicitations.
- Documentation: All cancellations must be formally recorded in accordance with the administrative requirements of FAR 14.403(d).
Practical Implications
- Contracting Officers must exercise caution and provide a documented rationale for cancellation to mitigate the risk of bid protests, as bidders may have incurred significant costs preparing sealed bids.
- The strict requirement to purge electronic data and refrain from viewing bids ensures procurement integrity and prevents the Government from gaining an unfair insight into market pricing before a resolicitation.