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FAR Part 14 Sealed Bidding. Contents Subpart 14.1 -- Use of Sealed Bidding Subpart 14.1 -- Use of Sealed Bidding Subpart 14.3 -- Submission of Bids Subpart.

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Presentation on theme: "FAR Part 14 Sealed Bidding. Contents Subpart 14.1 -- Use of Sealed Bidding Subpart 14.1 -- Use of Sealed Bidding Subpart 14.3 -- Submission of Bids Subpart."— Presentation transcript:

1 FAR Part 14 Sealed Bidding

2 Contents Subpart Use of Sealed Bidding Subpart Use of Sealed Bidding Subpart Submission of Bids Subpart Submission of Bids Subpart Opening of Bids and Award of Contract Subpart Opening of Bids and Award of Contract Subpart Two-Step Sealed Bidding Subpart Two-Step Sealed Bidding

3 Subpart Use of Sealed Bidding Sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. The following steps are involved: Sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. The following steps are involved: Preparation of invitations for bids Preparation of invitations for bids Publicizing the invitation for bids. Publicizing the invitation for bids. Submission of bids. Submission of bids. Evaluation of bids. Bids shall be evaluated without discussions. Evaluation of bids. Bids shall be evaluated without discussions. Contract award. Contract award. Contracting officers shall solicit sealed bids if – Contracting officers shall solicit sealed bids if – Time permits the solicitation, submission, and evaluation of sealed bids; 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; The award will be made on the basis of price and other price-related factors; It is not necessary to conduct discussions with the responding offerors about their bids; and It is not necessary to conduct discussions with the responding offerors about their bids; and There is a reasonable expectation of receiving more than one sealed bid There is a reasonable expectation of receiving more than one sealed bid

4 Subpart Solicitation of Bids Uniform contract format or Simplified format may be used Uniform contract format or Simplified format may be used Must check (x) block for IFB on Offer and Award Must check (x) block for IFB on Offer and Award Must include description or specifications for product/service solicited. Must include description or specifications for product/service solicited. Clauses and Provisions – insert as prescribed Clauses and Provisions – insert as prescribed , False Statements in Bids , False Statements in Bids , Submission of Bids , Submission of Bids , Explanation to Prospective Bidders , Explanation to Prospective Bidders , Late Submissions, Modifications, and Withdrawals of Bids , Late Submissions, Modifications, and Withdrawals of Bids , Contract Award - Sealed Bidding or , Contract Award -- Sealed Bidding -- Construction, , Contract Award - Sealed Bidding or , Contract Award -- Sealed Bidding -- Construction,

5 Subpart Solicitation of Bids Clauses and Provisions (Con’t.) Clauses and Provisions (Con’t.) , Preparation of Bids or , Preparation of Bids -- Construction , Preparation of Bids or , Preparation of Bids -- Construction , Telegraphic Bids , Telegraphic Bids , Place of Performance -- Sealed Bidding , Place of Performance -- Sealed Bidding , Period for Acceptance of Bids , Period for Acceptance of Bids , Evaluation of Bids for Multiple Awards, , Evaluation of Bids for Multiple Awards, , Facsimile Bids , Facsimile Bids , Submission of Offers in the English Language , Submission of Offers in the English Language , Submission of Offers in U.S. Currency , Submission of Offers in U.S. Currency , Audit and Records -- Sealed Bidding, , Audit and Records -- Sealed Bidding, , Price Related Factors , Price Related Factors

6 Subpart Solicitation of Bids Rules for soliciting bids Rules for soliciting bids Bid time – Reasonable time consistent with needs of the Government – typically 30 days if synopsizing in FBO (>25K) Bid time – Reasonable time consistent with needs of the Government – typically 30 days if synopsizing in FBO (>25K) Announcement / Publicizing Announcement / Publicizing Using the FBO Using the FBO Posting in public place Posting in public place Trade journals/publications Trade journals/publications Pre-solicitation notice leading to a bidders list. Pre-solicitation notice leading to a bidders list. Method for Solicitation Method for Solicitation Direct mail Direct mail Copy available for reproduction or distribution Copy available for reproduction or distribution Electronic commerce Electronic commerce Means of response Means of response Written bid in sealed envelope most common Written bid in sealed envelope most common Electronic commerce Electronic commerce Fax or telegraphic if allowed by CO Fax or telegraphic if allowed by CO

7 Subpart Solicitation of Bids Pre-Bid Meeting may be conducted to clarify solicitation requirements Pre-Bid Meeting may be conducted to clarify solicitation requirements Not an opportunity to prop-up a flawed solicitation Not an opportunity to prop-up a flawed solicitation Amendments to solicitation – SF30 Amendments to solicitation – SF30 May need to extend bid due date to allow time to incorporate information in amendment May need to extend bid due date to allow time to incorporate information in amendment Solicitation may be cancelled before bid opening Solicitation may be cancelled before bid opening Announce in FBO Announce in FBO Bids received shall be returned unopened Bids received shall be returned unopened Prospective bidders should be given the right to bid on any re-solicitation Prospective bidders should be given the right to bid on any re-solicitation Communications with bidders Communications with bidders Any information provided to one bidder must be provided to all – preferably at the same time. Any information provided to one bidder must be provided to all – preferably at the same time. Prohibition Prohibition

8 Subpart Submission of Bids Means of delivery Means of delivery Postal / Commercial delivery Postal / Commercial delivery Hand delivered Hand delivered Electronic submittal only if permitted by CO (e.g., fax, telephone, telegraph. Electronic submittal only if permitted by CO (e.g., fax, telephone, telegraph. Bids must be timely Bids must be timely Must arrive on or before the time specified at the address or location identified in the solicitation documents. Must arrive on or before the time specified at the address or location identified in the solicitation documents. Time and date stamped by Government Time and date stamped by Government

9 Subpart Submission of Bids Bids must be responsive Bids must be responsive Must comply in all material respects with the invitation for bids Must comply in all material respects with the invitation for bids Bids should be filled out, executed, and submitted in accordance with the instructions in the invitation Bids should be filled out, executed, and submitted in accordance with the instructions in the invitation Acknowledgement of amendments Acknowledgement of amendments Bid bond (if required) Bid bond (if required) All attachments or supporting documentation included All attachments or supporting documentation included Must be properly submitted Must be properly submitted , fax and telegraphic bids need not be accepted if not specified in the solicitation , fax and telegraphic bids need not be accepted if not specified in the solicitation Modification or withdrawal of bids Modification or withdrawal of bids Permitted at any time up to the bid due (“closing”) date/time Permitted at any time up to the bid due (“closing”) date/time If time not specified then bids close at 4:30pm on the prescribed date If time not specified then bids close at 4:30pm on the prescribed date

10 Subpart Submission of Bids Late Bids, Modifications and withdrawals Late Bids, Modifications and withdrawals Held unopened until after award Held unopened until after award Government must notify bidders of late bid Government must notify bidders of late bid Bid bond is returned. Bid bond is returned. CO may choose to accept a late bid if CO may choose to accept a late bid if Doing so does not delay the award Doing so does not delay the award If it was transmitted through an electronic commerce method authorized by the IFB, it was received at the initial point of entry to the Government infrastructure not later than 5:00 p.m. one working day prior to the date specified for receipt of bids; If it was transmitted through an electronic commerce method authorized by the IFB, it was received at the initial point of entry to the Government infrastructure not later than 5:00 p.m. one working day prior to the date specified for receipt of bids; There is acceptable evidence to establish that it was received at the Government installation designated for receipt of bids and was under the Government’s control prior to the time set for receipt of bids There is acceptable evidence to establish that it was received at the Government installation designated for receipt of bids and was under the Government’s control prior to the time set for receipt of bids

11 Subpart Opening of Bids and Award of Contract Receipt of proposals Receipt of proposals Must be secured prior to bid opening – held in secure file cabinet, safe, or Bid Box Must be secured prior to bid opening – held in secure file cabinet, safe, or Bid Box Procedure for inadvertently opened proposals Procedure for inadvertently opened proposals Procedure to open bids if identifying information not on exterior of bid package. Procedure to open bids if identifying information not on exterior of bid package. Bid opening is a public event Bid opening is a public event Bids opened by the Bid Opening Officer Bids opened by the Bid Opening Officer Bid opening is publicly announced (usually in the solicitation or pre-solicitation notice on FBO) Bid opening is publicly announced (usually in the solicitation or pre-solicitation notice on FBO)

12 Subpart Opening of Bids and Award of Contract Opening Process Opening Process Opening official announcement (greeting, the time is ___, Solicitation number/purpose, bidding is now closed, introductions) Opening official announcement (greeting, the time is ___, Solicitation number/purpose, bidding is now closed, introductions) Usually assisted by abstractor Usually assisted by abstractor Each bid is numbered and opened in turn Each bid is numbered and opened in turn Each bid is examined for responsiveness (e.g., were amendments acknowledged, bid bond present, etc.) Each bid is examined for responsiveness (e.g., were amendments acknowledged, bid bond present, etc.) Each bid is read aloud and recorded by the abstractor Each bid is read aloud and recorded by the abstractor Government estimate is opened, read aloud, and recorded Government estimate is opened, read aloud, and recorded Opening official announces that the bid opening is complete. No statement need be made concerning the winner or apparent winner at this time. Opening official announces that the bid opening is complete. No statement need be made concerning the winner or apparent winner at this time. Bids speak for themselves Bids speak for themselves Bids are subject to review prior to award Bids are subject to review prior to award Opening official signs the abstract and a copy is available for public inspection. Opening official signs the abstract and a copy is available for public inspection.

13 Subpart Opening of Bids and Award of Contract Rejection of bids Rejection of bids Individual Individual does not conform to the applicable specifications does not conform to the applicable specifications fails to conform to the delivery schedule fails to conform to the delivery schedule conditioned (all-or-none is OK) that affects price, quality or delivery. conditioned (all-or-none is OK) that affects price, quality or delivery. unreasonable as to price (in total or for an individual line item) unreasonable as to price (in total or for an individual line item) materially unbalanced materially unbalanced bidder deemed not responsible or debarred bidder deemed not responsible or debarred bid security not provide or improper bid security not provide or improper All All Government requirement no longer exists Government requirement no longer exists All bids exceed the Government estimate (i.e., are not reasonable) All bids exceed the Government estimate (i.e., are not reasonable) Specifications revised or inadequate Specifications revised or inadequate No responsive bid from a responsible bidder No responsive bid from a responsible bidder Collusion among bidders Collusion among bidders Less expensive if performed by Government (A-76) Less expensive if performed by Government (A-76) In the interest of the Government In the interest of the Government

14 Subpart Opening of Bids and Award of Contract Waiver of minor informalities by CO Waiver of minor informalities by CO Matter of form rather than substance Matter of form rather than substance Does not prejudice other bidder Does not prejudice other bidder Examples: failed to acknowledge amendment, did not sign bid, etc. Examples: failed to acknowledge amendment, did not sign bid, etc. Mistakes in bids – Before award Mistakes in bids – Before award Obvious clerical errors – correct through verification Obvious clerical errors – correct through verification Cannot be used to cure non-responsive bids Cannot be used to cure non-responsive bids Correction may be initiated by bidder after opening but subject to significant restrictions – especially if it would displace lower bidder. Correction may be initiated by bidder after opening but subject to significant restrictions – especially if it would displace lower bidder. Agency may prohibit low bidder from withdrawing (low) bid but may allow bidder to correct. Agency may prohibit low bidder from withdrawing (low) bid but may allow bidder to correct. Bidders notified of mistakes and asked to correct through ‘verification of bid’ process Bidders notified of mistakes and asked to correct through ‘verification of bid’ process Price is exceptionally low compared to other bidders and Government estimate Price is exceptionally low compared to other bidders and Government estimate Other information that the CO believes indicates an error in the bid. Other information that the CO believes indicates an error in the bid.

15 Subpart Opening of Bids and Award of Contract Mistakes in Bids – After Award Mistakes in Bids – After Award Governed by FAR 33.2 (Disputes and Appeals) Governed by FAR 33.2 (Disputes and Appeals) Decision documented via CO’s Final Decision Decision documented via CO’s Final Decision Work continues without interruption while issue is resolved Work continues without interruption while issue is resolved Actions include rescission or reforming to Actions include rescission or reforming to Eliminate item(s) involved Eliminate item(s) involved Adjust the contract price – but may not displace next low bidder Adjust the contract price – but may not displace next low bidder Clear and convincing Evidence that a mistake in bid was made. In addition, it must be clear that the mistake was— Clear and convincing Evidence that a mistake in bid was made. In addition, it must be clear that the mistake was— Mutual, or Mutual, or If unilaterally made by the contractor, so apparent as to have charged the contracting officer with notice of the probability of the mistake. If unilaterally made by the contractor, so apparent as to have charged the contracting officer with notice of the probability of the mistake.

16 Subpart Opening of Bids and Award of Contract Evaluation of bids Evaluation of bids Responsive to the solicitation Responsive to the solicitation Cost and cost related factors Cost and cost related factors Single vs. multiple awards Single vs. multiple awards Prompt payment discounts Prompt payment discounts Schedule Schedule Additive items Additive items Fair and reasonable price Fair and reasonable price Balanced pricing Balanced pricing Determination of bidder responsibility Determination of bidder responsibility Equal low bids resolved by with preference to small business Equal low bids resolved by with preference to small business Award made using the appropriate document (SF 1447, SF 33 SF26, SF 1442, OF 347) Note: the bid constitutes an offer which may be accepted by the Government to form a binding contract. Award made using the appropriate document (SF 1447, SF 33 SF26, SF 1442, OF 347) Note: the bid constitutes an offer which may be accepted by the Government to form a binding contract. Notice of Award Notice of Award FBO FBO To bidder To bidder

17 Subpart Two-Step Sealed BiddingSubpart Two-Step Sealed Bidding Step One Step One Request for, submission, evaluation, and (if necessary) discussion of a technical proposal Request for, submission, evaluation, and (if necessary) discussion of a technical proposal Resolves conformity to the technical requirements and any questions concerning the specifications Resolves conformity to the technical requirements and any questions concerning the specifications Step Two Step Two Sealed bids as per the above Sealed bids as per the above


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