Overview
FAR Subpart 14.1 prescribes the policies and procedures for "Sealed Bidding," a highly structured procurement method characterized by public bid openings and objective evaluations. It mandates that when specific conditions are met, the government must use this method to ensure maximum competition and transparency, awarding contracts solely based on price and price-related factors.
Key Rules
- Mandatory Use: Sealed bidding must be used if the conditions in FAR 6.401(a) are met (e.g., time permits, award is based on price, and discussions are unnecessary).
- No Discussions: Unlike negotiated procurements, the government is strictly prohibited from holding discussions or negotiations with bidders; bids are evaluated exactly as submitted.
- Restrictiveness Prohibited: Invitations for Bids (IFBs) must not include unnecessarily restrictive specifications that would unfairly limit competition.
- Public Transparency: Bids must be opened publicly at a specific time and place to ensure the integrity of the process.
- Contract Types: Awards are restricted to Firm-Fixed-Price (FFP) contracts or, in specific cases, Fixed-Price with Economic Price Adjustment (FP-EPA) contracts.
- Award Criteria: The award must go to the responsible bidder whose responsive bid (conforming to the IFB) is most advantageous to the government regarding price.
Responsibilities
- Contracting Officers (COs):
- Prepare clear, complete, and non-restrictive Invitations for Bids (IFBs).
- Publicize the IFB for a sufficient duration to allow for competition.
- Conduct the public opening of bids.
- Determine the "responsiveness" of the bid and the "responsibility" of the bidder.
- Program Managers / Technical Personnel:
- Ensure requirements and specifications are described accurately and completely without being restrictive.
- Bidders:
- Submit sealed, conforming bids to the designated location before the exact deadline.
- Ensure the bid is "responsive" (meaning it agrees to all terms of the IFB without exception).
Practical Implications
- Zero Margin for Error: Because discussions are prohibited (FAR 14.101(d)), a bidder cannot "fix" a mistake or clarify an ambiguity after the bid opening. A minor administrative omission can result in a bid being rejected as non-responsive, even if it is the lowest price.
- Requirement Clarity: This subpart places a heavy burden on the government to have 100% finalized requirements. If the government is unsure of the exact specifications or expects to negotiate terms, sealed bidding is inappropriate, and they should use FAR Part 15 (Negotiations) instead.
- Price as the Sole Driver: This method is best suited for commodities or construction where the "best value" is simply the lowest price for a standard specification. It removes the subjective "trade-off" process found in other procurement methods.
- Rigid Timeline: The requirement for "publicizing for a sufficient time" prevents agencies from rushing the process, ensuring a fair window for industry response.