Competition

Question 1

All of the following functions in federal procurement activities, with respect to prime contracts, are considered to be inherently governmental functions or are to be treated as such, except:

Determining whether contract costs are reasonable, allocable, and allowable.

Providing technical evaluation of contract proposals.

Accepting or rejecting contractor products or services.

Participating as a voting member on performance evaluation boards.
FAR 7.503

Answer 1

Providing technical evaluation of contract proposals.

Question 1

Competition

Answer 1

FAR Parts 6, 7, and 14

FAR Part 6 - Competition Requirements

Part 7 - Acquisition Planning

FAR Part 14 - Sealed Bidding

Question 2

What is the order of precedence among the 8(a) Program, HUBZone Program, Service-Disabled Veteran-Owned Small Business Procurement Program, and Women-Owned Small Business Program?

8(a) is preferred, and all others are treated equally

8(a) is preferred, followed by HUBZone, SDVOSB, and WOSB in that order

There is no order of precedence

HUBZone is preferred, followed by 8(a), SDVOSB, and WOSB in that order
FAR 6.2

Answer 2

There is no order of precedence

Question 3

When should acquisition planning begin?

Acquisition planning should begin when the Government wants to obtain a specific supply and/or service.

Acquisition planning should begin once the procurement request is made to the Contracting Officer.

Acquisition planning should begin at the start of the fiscal year.

Acquisition planning should begin as soon as the agency need is identified.
FAR 7.104

Answer 3

Acquisition planning should begin as soon as the agency need is identified.

Question 4

A pre-bid conference may be used for the following purposes except?

generally in a complex acquisition.

as a substitute for amending a defective or ambiguous invitation.

as a means of getting requirements to prospective bidders as early as possible after the invitation has been issued and before the bids are opened.

as a means of briefing prospective bidders and explaining complicated specifications.
FAR 14.207

Answer 4

as a substitute for amending a defective or ambiguous invitation.

Question 5

Two-Step bidding can use which of the following types of contracts?
Firm-Fixed-Price
Cost-Plus-Fixed-Fee
Time & Materials
None of the above
FAR 14.502

Answer 5

Firm-Fixed-Price

Question 6

Which of the following would be considered inherently governmental functions?

Services that involve or relate to budget preparation, including workload modeling, fact finding, efficiency studies, and should-cost analyses, etc.

Direction and control of Federal employees

Activities that include drafting of technical specifications to be used in solicitations for sensitive government procurement actions.

Gathering information for or providing advice, opinions, recommendations, or ideas to Government officials.
FAR 7.5

Answer 6

Direction and control of Federal employees

Question 7

The competitive procedures available for use in fulfilling the requirements for full and open competition are any of the following EXCEPT:

Sealed bids

Competitive proposals

Combination of competitive procedures, such as two-step sealed bidding

Lowest price technically acceptable
FAR 6.102

Answer 7

Lowest price technically acceptable

Question 8

The contracting officer may use competitive proposals in lieu of sealed bids if:

It is necessary to conduct discussions.

Time permits the solicitation, submission, and evaluations of sealed bids.

Award will be made on the basis of price and other price-related factors.

The resulting contract will be with a small business.
FAR 6.401

Answer 8

It is necessary to conduct discussions.

Question 9

Which authority permitting other than full and open competition may be used when none of the other authorities in FAR 6.302 apply?
International agreement.
National security
Public interest.
Unusual and compelling urgency.
FAR 6.302-7(b).

Answer 9

Public interest.

Question 10

A competition advocate:

is appointed by the Officer of Federal Procurement Policy

is the Head of the Procuring Activity

promotes acquisition of commercial items; promotes full and open competition; challenges ambiguous and restrictive work statements; challenges barriers to the acquisition of commercial items and full and open competition

is the Head of the Agency who promotes competition
FAR 6.502

Answer 10

promotes acquisition of commercial items; promotes full and open competition; challenges ambiguous and restrictive work statements; challenges barriers to the acquisition of commercial items and full and open competition

Question 11

Which of the following duties is NOT a responsibility for competition advocates?

Recommend to the Contracting Officer a system of personal accountability for competition, which may include the use of recognition and awards to motivate the procurement staff.

Review the contracting operations of the agency and identify and report to the agency senior procurement executive and the chief acquisition officer.

Prepare and submit an annual report to the agency senior procurement executive and the chief acquisition officer in accordance with agency procedures.

Recommend goals and plans for increasing competition on a fiscal year basis to the agency senior procurement executive and the chief acquisition officer.
FAR 6.502

Answer 11

Recommend to the Contracting Officer a system of personal accountability for competition, which may include the use of recognition and awards to motivate the procurement staff.

Question 12

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What is full and open competition?

Answer 12

Full and open competition refers to the government’s default standard for allowing all responsible, registered companies or individuals to submit proposals for contracts. Basically, if your company is in good standing and registered in the System for Award Management, you are eligible to win government contracts solicited under full and open competition.

Question 13

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What is the most common procedure for a full and open competition?

Answer 13

Full and open competition usually follows the familiar process of issuing a solicitation, usually in the form of a Request for Proposals (RFP). Your company submits a proposal, which will be evaluated against a set of factors like price, past performance, or technical approach.

Question 14

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

Can my company protest a decision made under full and open competition?

Answer 14

Yes. In fact, your company has the most “rights” or protections under full and open competition. Since this is the highest level of competition required of the government, it has the highest number of rules that cannot be broken. If these rules are broken, however, your company may be able to protest the contract award formally at the agency, Government Accountability Office, or Court of Federal Claims.

Question 15

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What is full and open competition after exclusion of sources?

Answer 15

Full and open competition allows (basically) any company to compete. In contrast, full and open competition after exclusion of sources allows any company within certain categories to compete.

Question 16

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

Is a small business set-aside an example of full and open competition after exclusion of sources?

Answer 16

Yes, the most common example of using full and open competition after exclusion of sources is whenthe government solicits a contract as a small business set-aside. When only small businesses are eligible to compete for the contract, we have full and open competition but only among small businesses. The
“exclusion of sources” refers to all the large businesses that are ineligible to compete.

Another example is when the government solicits a contract as a women-owned small business (WOSB) set-aside. In this example, the excluded sources include all large businesses and also small businesses that do not qualify as WOSB.

Yet another example is when the government restricts award to local companies after a major disaster or emergency. By excluding any companies not in the disaster area, the government helps the local economy recover by stimulating local businesses.

Apart from set-asides or preference for local companies, the government has one more reason to exclude certain sources. Sometimes the government wants to create or maintain alternative sources, so the government decides to “spread the wealth.” By excluding certain sources, the government “spreads the wealth” to alternative sources.

For example, company XYZ wins 90 percent of the contracts for medical devices. By excluding company XYZ, the government diversifies its supplier base for medical devices. The other companies receive more contracts, increase their revenue, and expand their market share to become an alternative source for the government.

Question 17

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

How can this process be full and open competition if entire categories of companies can be excluded-as in a small business set-aside?

Answer 17

So many names and concepts in the FAR are confusing or misleading, which is one reason why I wrote this book. Just remember that full and open competition after exclusion of sources is a method of solicitation that allows competition only among a certain class of companies, for example, small businesses, women-owned small businesses, or local firms in a disaster area.

Question 18

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What types of contracting procedures qualify as full and open competition?

Answer 18

FAR Part 6 lists the following as methods of contract competition that satisfy the requirements of full and open competition: sealed bidding, competitive proposals, combinations of competitive procedures (such as two-step sealed bidding), and other competitive procedures.

Other competitive procedures (that also satisfy full and open competition) include the following: selection of sources under architect-engineer contracts using the procedures of the Brooks Act, orders from General Services Administration (GSA) Schedule contracts, and Broad Agency Announcements (BAA) for research that use peer or scientific review for selection decisions.

Question 19

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What is other than full and open competition? Is other than full and open competition different from full and open competition after exclusion of sources?

Answer 19

Yes, you must understand that “full and open competition” and “full and open competition after exclusion of sources” can be grouped together as two forms of competitive procedures. Now we can discuss the third category, which is noncompetitive. This third category is called other than full and open competition.

Question 20

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

Is other than full and open competition related to sole-source contracts?

Answer 20

Yes, a sole-source contract is one example of using other than full and open competition. Congress provided specific exceptions where federal agencies do not have to follow competitive procedures. To make sure agencies do not abuse this special authority, Congress requires agencies to state the reason specifically for their using other than full and open competition.

Question 21

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

How must federal agencies specifically state the reason for using other than full and open competition?

Answer 21

You may hear the term J&A or justification and approval. This justification document outlines why the government will not or cannot satisfy the standard of full and open competition. Another name for the J&Ais justification for other than full and open competition.
What a mouthful!

The J&A will specifically reference the reason the government is not using full and open competition.
There are only seven categories-seven acceptable reasons-for issuing a J&A and using other than full and open competition.

Question 22

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What are the seven acceptable reasons for the government to issue a J&A for other than full and open competition?

Answer 22

This mnemonic device will help you to remember the seven reasons for a J&A or justification and approval for other than full and open competition: IOUSNIP.
Each of the letters stands for a possible reason for issuing the J&A. The most common reason is “sole source,” which is “only one source” in the mnemonic device, IOUSNIP. Here’s the complete list:

International agreement
Only one source
Urgency
Statute (a specific law)
National security
Industrial mobilization
Public interest

International agreement means a treaty with a foreign country requires a particular vendor to win the government contract. The term only one source is self-explanatory. Only one source can perform the service or deliver the product. Urgency means an unusual and compelling urgency threatens serious injury to the government. Lack of planning does not count!

Statute means that a law passed by Congress requires a particular vendor to win the government contract.

National security is a vague reason that can mean almost anything, depending on your opinion.

Industrial mobilization means the government needs to bolster specific industries or certain technological capabilities. Therefore, the government will award contracts to certain companies to keep this industry strong or influence it toward new priorities. Finally, public interest is a vague excuse that can be abusedeasily. What is the public interest? You tell me! Let’s argue for a few hours. To protect against overuse of the public interest exception, federal agencies must notify Congress if they intend to use public interest to avoid full and open competition.

Question 23

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

Can you challenge the J&A?

Answer 23

If your company gets a government contract due to a J&A, consider yourself lucky. If your company cannot compete for a government contract because of a J&A, you can challenge the validity of the J&A. The J&A will be posted to the Internet, so you can examine it.

Although you can try to challenge the J&A to force the government to compete the contract, you are likely to fail. Successful challenges to a J&A are rare. A better strategy is to communicate with the government before it issues the J&A. Convince the government that your company can also deliver the services or product.
Your intervention may persuade the government to open the contract to full and open competition.

Question 24

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What are some unacceptable reasons for using other than full and open competition (noncompetitive contracts)?

Answer 24

The FAR specifically forbids agencies from using these two excuses:

Unacceptable excuse number one: “My agency ran out of time, so we issued a noncompetitive contract using other than full and open competition.” Lack of advance planning is never a valid excuse for using noncompetitive procedures.

Unacceptable excuse number two: “My agency funding is expiring soon, and my agency does not want to wait for next year’s money to arrive to award this contract, so I don’t have time for competitive procedures.” This poor excuse is based on the time-limited nature of agency funding. Again, lack of planning is never a valid excuse for using noncompetitive procedures.

Question 25

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is acquisition planning?

Answer 25

Acquisition planning is the government process of thinking carefully about the best way to purchase and maintain whatever the government buys, including the full life-cycle cost.

Question 26

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What does life-cycle cost mean?

Answer 26

Life-cycle cost means the total cost for the government of acquiring, operating, supporting, maintaining, and eventually disposing of whatever the government buys. The important concept is that the government’s total cost does not stop after the contract is signed, or even after the contract period of performance is completed.

For complex purchases, such as multi-million-dollar programs, the life-cycle costs can span decades.
The cost of supporting or maintaining major weapons systems can be several multiples of the upfront purchase price. You can compare this process to the life-cycle cost of your car. In addition to the purchase price of the car, you must pay for parking, maintenance, repairs, insurance, fuel, and other lifecycle costs.

Question 27

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

Why should contractors care about acquisition planning and life-cycle cost?

Answer 27

By understanding the government’s responsibilities for acquisition planning and consideration of life-cycle cost, you can form persuasive arguments that help you sell more to the government. By incorporating these concepts into your proposal, or response to requests for information, or sales pitch, you can gain the trust and confidence of your government clients.

Question 28

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

When should the process of acquisition planning begin?

Answer 28

Acquisition planning should begin as soon as the agency need is identified. If your company wants toinfluence the acquisition planning, you need to act quickly and anticipate the government’s needs.

Question 29

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is consolidation?

Answer 29

Consolidation refers to when the government combines two or more requirements into a single contract.
In other words, instead of awarding two or more contracts, the government awards only one contract. Consolidation of contracts can save time and money but can also prevent smaller companies from competing on the consolidated contract. Larger contracts provide a distinct advantage for larger companies.

Question 30

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is bundling?

Answer 30

Bundling is a minority subset of consolidation. Not all consolidation qualifies as bundling, but all bundling is also consolidation. Bundling occurs when the government consolidates two or more requirements that were previously performed by small businesses, and that consolidated contract is no longer suitable for performance by small businesses. Therefore, bundling is a subset of consolidation that shuts out the possibility of small business performing as the prime contractor. For these reasons, the government avoids bundling requirements. When the government decides to bundle contracts, they must justify the decision in writing.

Question 31

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

Why should contractors care about government policy about consolidation and bundling?

Answer 31

Government contracting officers and other senior leadership are supposed to make decisions based on market research, including decisions about acquisition planning. Your company is part of the wider market; therefore, the opinions, arguments, or facts specific to your company qualify as market research.
Your company can influence government decisions by providing information that qualifies as market research. Provide your information in writing.

You can respond to Requests For Information (RFI) or formal notices of consolidated or bundled contract
competitions. Your written response can identify the negative impacts on small businesses, which maypersuade the government to avoid consolidation or bundling. In some cases, you could write an email to the agency’s Director of Small Business (or Office of Small and Disadvantaged Business Utilization or Office of Small Business Programs). The Director of Small Business may act as your company’s advocate to the program or contracting office.

Question 32

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is the policy on having federal employees versus contractors perform services?

Answer 32

That question is difficult to answer because policy preferences change every few years. So, let’s discuss the decision factors so you can better understand the landscape.

Question 33

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is an inherently governmental function?

Answer 33

An inherently government function is a service, action, determination, or duty so intimately related to the public interest that it requires a federal employee’s performance (rather than a contractor’s).
Some activities cannot or should not be outsourced to contractors, we call them inherently governmental functions.

The simplest example is the President of the United States, whom Americans elect via the electoral college to be the chief executive. Although the following example is silly, it colorfully illustrates the principle of inherently governmental activities.
If the duly elected President of the United States hired a contractor to make every single decision, while the President drank margaritas in the Florida Keys, most Americans would be rightfully angry. Why is the President outsourcing the principal duties of the Office of the Presidency? Why is a contractor— who was not elected —making decisions that affect the entire nation? Why is a contractor writing and signing executive orders and negotiating deals with foreign leaders? Keep this silly example in the back of your mind when you consider other examples of inherently governmental activities.

Question 34

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What are some examples of inherently governmental activities

Answer 34

FAR Part 7 provides a long list of inherently government activities, such as:

Conducting criminal investigations
Commanding military forces
Determining agency policy
Directing federal employees
Controlling intelligence operations
Awarding, administering, or terminating contracts
Determining agency budgets

Question 35

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What are some examples of functions that do not qualify as inherently governmental activities, but are awfully close to qualifying, and therefore require further scrutiny?

Answer 35

FAR Part 7 provides a list of functions that almost qualify as inherently government activities and therefore merit special consideration, including contractor services relating to the following:
Budget preparation
Reorganization or planning
Analysis, feasibility studies, and strategy options
Development of regulations
Acquisition planning
Contract management (government contracting)
Responses to Freedom of Information Act requests
Legal advice and interpretations of regulations or laws

Question 36

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

Wait! The previous list sounds like many of the services provided by federal contractors to several different agencies. What is the explanation?

Answer 36

Remember, the list is a warning, not a direct prohibition. Contractors can perform services related to those functions, but the government must exercise caution to ensure the services do not cross the line of inherently governmental functions.

Question 37

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

How does this work in the real world?

Answer 37

The simplest explanation is that contractors, in the 21st century, are an integral part of the federal workforce. Contractors are not federal employees, but contractors work side-by-side in support of federal employees.

While only federal employees can make decisions or determinations, contractors are regularly hired to assist and support federal employees. This difference is subtle yet important. As long as the federal employee makes the final decision or determination, contractors can usually avoid any problems with performing inherently governmental functions.

Onsite contractors should learn this word and use it often: “recommendation.” As in, “My recommendation is that the agency follows simplified acquisition procedures.” “I recommend that the Director conduct a full audit.” “I do not recommend that the Deputy
Assistant Secretary attend the meeting.”

Always remember that your contractor employees, if they work as onsite contractors, side-by-side federal employees, are hired to make recommendations, not decisions. Let the federal employees make final decisions and determinations. Stay in your lane!

Train your employees about the policies surrounding inherently governmental functions. Each of your employees should understand the basics and know how to proceed if asked to perform inappropriate services.

Question 38

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

What is the history of sealed bidding?

Answer 38

Many years ago, public officials gathered in town halls to open sealed envelopes, in a public setting, to guarantee fairness and transparency. These sealed bids became the basis for contracting competition. The government notified everyone through “formal advertising” to submit a bid based on government specifications. If your bid was compliant and the lowest price, your bid wins the competition.

When Congress passed the Competition in Contracting Act (CICA) in 1984, the popularity of sealed bidding dropped significantly. The reason is under CICA, both sealed bidding under FAR Part 14 and competitive negotiation under FAR Part 15 were acceptable ways to satisfy the need for “full and open competition.” In cases, agencies opted to use the more flexible procedures of FAR Part 15 instead of sealed bidding

Question 39

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

Is sealed bidding a common practice now?

Answer 39

No, not really. In federal government contracting, sealed bidding is a rare or niche method of competition. Only a small minority of government contract competitions use sealed bidding. Unless you work in construction contracting, you can probably ignore it completely.

Question 40

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

How does the government invite sealed bids?

Answer 40

The “solicitation” for sealed bidding is called an Invitation for Bids or IFB. To give all companies an equal opportunity, the IFB should contain all the important terms and conditions of the contract. The idea behind this policy is that bidders should distinguish themselves primarily on price.

Question 41

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

How does the government select a winner under sealed bidding?

Answer 41

Price is supposed to be the primary decision factor for award. Ideally, the government shared a precise and exhaustive list of specifications so that all bidders understand exactly what must be performed under the contract. Therefore, the only evaluation factor should be price or price-related factors.

Question 42

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

Can the government negotiate under sealed bidding?

Answer 42

No, the government cannot negotiate with bidders under sealed bidding. Remember, the bids are sealed, and the winner is selected based only on price evaluation. This limitation is both the strength and weakness of sealed bidding. The benefit is the sealed bidding process is objective, simple, and prevents unequal treatment of bidders. The drawback is the process is rigid, limited, and prevents negotiation that might otherwise produce a better contract deal.

Question 43

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

Does the government have discretion to pay more for higher quality or performance under sealed bidding?

Answer 43

No, sealed bidding is designed to prevent the government from paying more to get a better product or service. Under sealed bidding, the government is supposed to award to the company that has a “responsive” bid with the lowest price.

Question 44

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

What does “responsive” mean under sealed bidding?

Answer 44

Responsive refers to whether the bid conforms to all material elements of the IFB or government specifications. If your company leaves out an important item required by the IFB, or fails to follow the IFB, your bid may be considered nonresponsive. If your bid is nonresponsive, you are not eligible for award.

The requirement of responsiveness is one way to keep all sealed bidders on equal footing. If one bidder tries to get an unfair advantage by submitting a lower price based on a material deviation from the IFB, the government cannot possibly reward that bidder because such a bid is nonresponsive and therefore ineligible for award.

Question 45

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

What is the difference between responsiveness versus responsibility?

Answer 45

Responsiveness is about whether the contractor pledged to do precisely what the government requested in the IFB. The government will examine only your bid to determine responsiveness to the IFB.

Responsibility is about whether the contractor can or will perform the contract (if it wins the contract). The government can examine not only your bid, but other attributes of your company as well, to determine responsibility.
You can read more about the determination of
contractor responsibility in Part 9, Contractor Qualifications.

Question 46

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

What is two-step sealed bidding?

Answer 46

If you understand so far, sealed bidding does not allow negotiation between the government and sealed bidders. Instead, the government opens the sealed bids and makes award based only on price or price-related factors.

Two-step sealed bidding combines negotiation with traditional sealed bidding. In the first step, the government asks for different technical proposals. No pricing or price negotiation is involved in the first step. The government only negotiates regarding the technical proposal.
The goal is to develop a detailed technical specification to use in the second step.

The second step is more like traditional sealed bidding. Based on the technical specification developed in the first step, companies submitsealed bids, and the government picks the winner based on the lowest price.

Question 47

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

Why would the government use two-step sealed bidding?

Answer 47

Two-step sealed bidding makes sense when the government does not have a precise set of technical standards already developed, which is a requirement for traditional sealed bidding.
Two-step sealed bidding allows creative input and ideas from industry, and helps the government decide what it wants and what is available in the first step. Then, in the second step, the government takes those specifications and follows a process like traditional sealed bidding.