Overview
FAR 14.502 defines the specific criteria that must be met to utilize two-step sealed bidding as an alternative to negotiation and identifies various contracting scenarios—such as small business set-asides—that do not preclude its use.
Key Rules
- Mandatory Conditions for Use: All five of the following must be present:
- Specifications are not sufficiently definite or complete to permit standard sealed bidding without technical evaluation and discussion.
- Definite criteria exist for evaluating technical proposals.
- At least two technically qualified sources are expected to be available.
- There is sufficient time to complete the two-step process.
- The contract type is limited to Firm-Fixed-Price (FFP) or Fixed-Price with Economic Price Adjustment (FP-EPA).
- Permissible Scenarios: The use of this method is specifically allowed in conjunction with:
- Multi-year contracting and performance specifications.
- Government-furnished property.
- Small business set-asides (including Total Small Business, HUBZone, SDVOSB, EDWOSB, and WOSB).
Practical Implications
- This section allows Contracting Officers to benefit from the price competition of sealed bidding even when requirements are technically complex, provided they have the additional lead time required for a two-phase evaluation.
- It ensures that the government does not use this method for high-risk cost-reimbursement contracts, as it strictly mandates fixed-price arrangements.