Overview
FAR 14.401 establishes the mandatory security and confidentiality protocols for handling sealed bids from the moment of receipt until the formal bid opening. The section ensures the integrity of the competitive bidding process by preventing premature disclosure of bidder information or pricing.
Key Rules
- Secure Storage: All bids and modifications must be kept in a locked bid box, a safe, or a secured, restricted-access electronic environment.
- Confidentiality: Before the formal opening, information regarding the identity or number of bidders may only be shared with Government employees on a strict "need-to-know" basis.
- Mandatory Returns: If an Invitation for Bids (IFB) is cancelled, all bids must be returned to the respective bidders.
- Identification Exceptions: If an envelope is not properly marked, a designated official may open it solely to identify the bidder or the solicitation.
- Accidental Openings: If a bid is opened by mistake, the person who opened it must sign the envelope and provide their title. A designated official must then document the date, time, and reason for the opening, sign it, and immediately reseal the envelope.
Practical Implications
- Integrity and Protests: Failure to strictly follow these safeguarding procedures can provide grounds for a bid protest, as it creates the appearance of an unfair competitive advantage or "leaked" pricing.
- Chain of Custody: Contracting offices must maintain rigorous physical and administrative controls to ensure that no government personnel—including the contracting officer—view bid contents until the designated opening time.