FAR Part 14 Flashcards by Todd Schak

Overview of Sealed Bidding

Definition and Scope

Sealed bidding is a method of contracting that involves the submission of competitive bids,
public opening of bids, and awarding contracts. (FAR 14.101)

It is used for acquiring supplies and services, including construction. (FAR 14.000)

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Overview of Sealed Bidding

Elements of Sealed Bidding (FAR 14.101)

Preparation of invitations for bids.

Publicizing the invitation.

Submission of bids.

Evaluation of bids without discussions.

Contract award to the lowest responsive and responsible bidder.

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Use of Sealed Bidding

General Policy

Mandatory Use (FAR 14.103-1)

Sealed bidding shall be used whenever conditions in FAR 6.401(a) are met.

Suitable for classified acquisitions if agency security requirements are not violated.

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Use of Sealed Bidding

Limitations and Contract Types

Limitations (FAR 14.103-2)
o No awards unless bids have been solicited and submitted as required.
o Contracts are awarded only to responsible bidders whose bids are most advantageous.

Types of Contracts (FAR 14.104)
o Firm-fixed-price contracts.
o Fixed-price contracts with economic price adjustment clauses if authorized.

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Part 14 - Sealed Bidding 14.2 Solicitation of Bids

14.2 Solicitation of Bids

Preparation of Invitations (FAR 14.201)

Invitations must clearly describe the requirements and avoid unnecessarily restrictive specifications.

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Part 14 - Sealed Bidding 14.2 Solicitation of Bids

14.2 Solicitation of Bids

Uniform Contract Format (FAR 14.201-1)

Use the uniform contract format to facilitate preparation and reference.

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Part 14 - Sealed Bidding 14.2 Solicitation of Bids

14.2 Solicitation of Bids

Essential Provisions (FAR 14.201-6)

Amendments to Invitations for Bids (FAR 52.214-3).

False Statements in Bids (FAR 52.214-4).
Submission of Bids (FAR 52.214-5).

Explanation to Prospective Bidders (FAR 52.214-6).

Late Submissions, Modifications, and Withdrawals of Bids (FAR 52.214-7).

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Part 14 - Sealed Bidding

14.3 Submission of Bids

Bid Submission Rules

Responsiveness of Bids (FAR 14.301)
o Bids must comply in all material respects with the invitation for bids.
o Non-compliance results in rejection.

Submission Guidelines (FAR 14.302)
o Bids must be submitted by the exact time specified. o Various transmission methods allowed if specified.

Modifications and Withdrawals
Modification and Withdrawal Conditions (FAR 14.303)
o Bids can be modified or withdrawn before the opening time.
o Specific protocols for handling facsimile and electronic bids (FAR 14.304).

Late Bids (FAR 14.304)
o Generally not considered unless specific criteria are met.

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Part 14 - Sealed Bidding

Public Bid Opening Procedures

General Procedures (FAR 14.402-1)
o Bids are publicly opened at the time and place stated in the invitation.
o All bids are read aloud and recorded for transparency.

Classified Bids (FAR 14.402-2)
o Separate protocols for classified bids to ensure security.

Postponement and Recording
Postponement of Openings (FAR 14.402-3)
o May be postponed due to delays or emergencies.

Recording of Bids (FAR 14.403)
o Detailed recording of bids received to ensure accuracy and fairness.

Contract Award (FAR 14.408-1)
 Awarded to the lowest responsible bidder whose bid conforms to the invitation

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Part 14 - Sealed Bidding 14.5 Two-Step Sealed Bidding

Step One Procedures
Request for Technical Proposals (FAR 14.503-1)
o Includes a detailed description of requirements, criteria, and submission guidelines.
o Technical proposals are evaluated on merit without pricing.

Evaluation (FAR 14.503-1)
o Proposals categorized as acceptable, reasonably susceptible of being made acceptable, or unacceptable.

Step Two Procedures
Invitation for Sealed Priced Bids (FAR 14.503-2)
o Issued only to those with acceptable technical proposals.
o Bids are evaluated, and awards are made based on the criteria in subparts 14.3 and 14.4.

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Sealed bidding

A method of contracting that employs competitive bids, public bid opening, and awards

Award is made to that responsible bidder whose bid, conforming to the invitation for bids, wil be most advantageous to the government considering only price and price-related factors included in the invitation

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Sealed bid

Adocument enclosed ni a glued (sealed) envelope and submitted ni response to an invitation for bids

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Steps in sealed bidding

Step :1 Preparation of invitations for bids

Step 2: Publicizing the solicitation

Step 3: Submission of sealed bids

Step 4: Bid evaluation

Step 5: Award of contract

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What Is Sealed Bidding?

Award is made to the responsible bidder whose bid is
responsive to the terms of the invitation for bids and is
most advantageous to the government, considering only price and price-related factors included in the invitation.

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When Is Sealed Bidding Used?

Sealed bidding is appropriate when:

Time permits the solicitation, submission, and evaluation of sealed bids

The award will be made on the basis of price and other price-related factors

It is not necessary to conduct discussions with the
offerors responding

There is a reasonable expectation of receiving more
than one sealed bid

Time permits the solicitation, submission, and evaluation of sealed bids

The award will be made on the basis of price and other price-related factors

It is not necessary to conduct discussions with the
offerors
responding

There is a reasonable expectation of receiving more
than one sealed bid

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When Is Sealed Bidding Used?
Appropriate contract types for sealed bidding

Firm-fixed-price

Fixed-price with economic
price adjustment

May be used for classified acquisitions fi its use does not violate agency security requirements

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Preparing the Invitation for Bids

Section A Solicitation/contract form

Section B Supplies or services and prices/costs

Section C Description / specifications / statement of work

Section D Packaging and marking

Section E Inspection and acceptance

Section F Deliveries or performance

Section G Contract administration data

Section H Special contract requirements

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Preparing the Invitation for Bids

Section I Part II Contract Clauses

Section J Part II List of documents, exhibits, and other attachments

Preparing the Invitation for Bids

Section K Representations, certifications, and other statements of bidders or respondents

Section L Instructions, conditions, and notices ot bidders or respondents

Section M Evaluation factors for award

Preparing the Invitation for Bids

For firm-fixed-price or fixed-price with economic price adjustment acquisitions of supplies and services, the
contracting officer may

use the simplified contract format.

Preparing the Invitation for Bids

The contracting officer has flexibility in preparation and organization of the simplified contract format.
To the maximum practical extent, it should contain:

Standard Form 1447, Solicitation/Contract * Contract schedule

Clauses

List of documents and attachments

Representations and instructions

Preparing the Invitation for Bids

Factors to be considered in establishing time limits for solicitation for bids:

Degree of urgency

Complexity of requirement

Anticipated extent of subcontracting

Whether presolicitation notices were used * Geographic distribution of bidders

Preparing the Invitation for Bids

Factors to be considered ni establishing time limits for solicitation for bids:

Degree of urgency

Complexity of requirement

Anticipated extent of subcontracting

Whether presolicitation notices were used

Geographic distribution of bidders

Normal transmittal time for both invitations a n d bids

Requirements

Bid sample

A sample product to be furnished by a bidder to show the characteristics of a product offered in a bid

Bid samples shall:

Only be required fi necessary characteristics of the product cannot be adequately described ni the solicitation Only be used to determine responsiveness of the bid Be examined for all required characteristics Disqualify a bid fi their examination reveals that the requirements are not met

Requirements Descriptive literature

Information, such as cuts, illustrations, drawings, and brochures, which shows the characteristics or construction of a product or explains its operation. Furnished by bidders as a part of their bids to describe the products offered.

When a bid is accompanied by descriptive literature, any restriction that prevents the public disclosure of such literature may render the bid nonresponsive, if:

It prohibits the disclosure of sufficient information to permit competing bidders to know the essential nature and type of the products, or It prohibits disclosure of those elements of the bid that relate to quantity,price, anddelivery terms

Requirements Pre-bidconference

May be used, generally in a complex acquisition, as a means of briefing prospective bidders and explaining complicated specifications and requirements to them as early as possible after the invitation has been issued and before the bids are opened. It shall never be used as a substitute for amending a defective or ambiguous invitation.

Canceling a Solicitation Invitations for bids should not be canceled unless cancellation is clearly in the public interest. Cancellation procedures

For an electronic IFB: * Electronically post a notice of the cancellation * Delete any received bids without viewing them For all other IF Bs: * Return all received bids unopened * Notify prospective bidders who received the IFB

Canceling a Solicitation Discussions with prospective bidders shall be conducted and technical only by the contracting officer or superiors having contractual authority.

Personnel shall not furnish any information that may afford an advantage over others General information that would not be prejudicial to other prospective bidders may be furnished upon request

Submission of Sealed Bids To be considered for award, the bid must comply with all material specifications set forth in the solicitation

The invitation for bids wil designate the office where the bid shall be delivered, and the time for delivery. No bid shall be considered that is not delivered to the designated office after the exact time set for opening.

Bids may be modified or withdrawn

by any method authorized by the solicitation, if notice is received ni the office designated in the solicitation not later than the exact time set for opening of bids.

Late bids that are not considered for award are to be

held unopened, unless opened for identification, until after award and then retained with other unsuccessful bids.

Sealed Bidding: Steps to Determine Award Responsive

Describes a bid that meets, without any material deviation, the expressed requirements of a solicitation In sealed bidding, describes a bidder that fuly complies with and does not materially deviate from the terms, conditions, and specifications set forth in an invitation for bids

Sealed Bidding: Steps to Determine Award Responsible

Describes a contractor that is a capable party having the financial resources, personnel, facilities, integrity, and overall capability to fulfill specific contractual requirements satisfactorily

Sealed Bidding: Steps to Determine Award

Low Bidder Is low bidder responsible If no go to next lowest bidder

Opening of Bids and Award of Contract Single source

One source among others in a competitive marketplace that, for justifiable reason, is found to be most advantageous for the purpose of contract award

Single source * One source among others in a competitive marketplace that, for justifiable reason, is found to be most advantageous for the purpose of contract award If a bid received electronically is unreadable to the degree that conformance to the essential requirements of the IFB cannot be ascertained, the contracting officer shall

notify the bidder that the bid wil be rejected unless the bidder provides clear and convincing evidence Of the content of the bid as originally submitted; and That the unreadable condition of the bid was caused by government software or hardware error, malfunction, or other government mishandling.

Errors in Sealed Bids Minor informality/irregularity:

merely a matter of form or some immaterial variation from exact requirements of the IFB, having no or negligible effect on price, no effect on quality, quantity of deliveries, and correction or waiver would not affect other bidders (usually omissions) Example: not submitting the correct number of copies of bids Any clerical mistake, apparent on its face in the bid, may be corrected by the contracting officer before award (must first verify mistake with bidder)

Errors in sealed Bids A mistake may be corrected by contract modification if

correcting the mistake would be favorable to the government without changing the essential requirements of the specifications. If correction results in an increased price, ti must not exceed the next lowest acceptable bid under the original invitation for bids.

Contracts are awarded in the following order of priority. nI the case of equal low bids:

Small business concerns that are also labor surplus are concerns Other small business concerns All other business concerns If two or more bidders still remain equally eligible, award shall be made by a drawing by lot limited to those bidders.

ContractAward If less than three bids have been received,

the contracting officer shall examine the situation to ascertain the reasons for the small number of responses. Award shall be made notwithstanding the limited number of bids. However, the contracting officer shall initiate, fi appropriate, corrective action to increase competition in future solicitations for the same or similar items, and include a notation of such action in the records of the invitation for bids

Summary of Sealed Bidding

Agency prepares IFB, using either the Uniform Contract Format or the Simplified Contract Format Bids are solicited by posting the IFB, and bidders are allowed time to prepare and submit bids Sealed bids are submitted Bids are publicly opened and read Award is made on price and price-related factors to the responsible contractor whose responsive bid is most advantageous to the government

Two-Step Sealed Bidding Obtains the benefits of sealed bidding when adequate specifications are not available

Step One Technical analysis Step Two Those who submitted acceptable technical proposals submit sealed bids