Overview
Two-step sealed bidding is a hybrid procurement method designed to secure the benefits of price competition when the government lacks sufficiently detailed specifications for a traditional sealed bid. It allows the government to evaluate technical solutions first and then conduct a price competition among those whose solutions are deemed acceptable.
Key Rules
- Purpose: To develop a descriptive statement of requirements and a technical data package that enables future acquisitions to be made via conventional sealed bidding.
- Step One (Technical): Focuses solely on the request, submission, and evaluation of technical proposals; no pricing is allowed or considered during this phase.
- Technical Scope: The term "technical" is applied broadly, encompassing engineering approaches, manufacturing processes, and testing techniques.
- Exclusion of Responsibility: Step one evaluates the conformity of the proposal to technical requirements, but it does not determine contractor responsibility as defined in FAR Part 9.1.
- Step Two (Pricing): Only those who submitted acceptable technical proposals in Step One are invited to submit sealed, priced bids.
- Award Criteria: Step Two is governed by standard sealed bidding rules (FAR 14.3 and 14.4), where the award is typically made to the lowest responsive and responsible bidder.
Practical Implications
- This method is highly effective for complex items or services where the government knows the end goal but needs industry expertise to define the specific technical approach.
- It protects the government from being legally tied to a low-priced bid that is technically deficient, as price is only considered after technical viability is confirmed.