14.103
Policy
Sealed bidding is only appropriate when award can be made solely on price and discussions are unnecessary, so contracting officers must carefully assess acquisition requirements before choosing this method.
Overview
FAR 14.103 outlines the policy for the use of sealed bidding in federal acquisitions. This section establishes when sealed bidding is the preferred method for procurement and sets forth the conditions under which it should be used. It emphasizes that sealed bidding is appropriate when the award will be made based on price and other price-related factors, and when discussions with offerors are not necessary. The section also references limitations and exceptions to the use of sealed bidding, directing contracting professionals to consider whether the procurement meets the criteria for this method before proceeding.
Key Rules
- General Policy
- Sealed bidding is the preferred method when the award can be made solely on price and price-related factors, and discussions are not required.
- Limitations
- Sealed bidding should not be used if the procurement requires discussions, negotiations, or if the requirements are not clearly defined.
Responsibilities
- Contracting Officers: Must determine if sealed bidding is appropriate for the acquisition and ensure all conditions are met before proceeding.
- Contractors: Should be prepared to submit bids that are responsive to the solicitation and based solely on price and price-related factors.
- Agencies: Must oversee the proper application of sealed bidding policies and ensure compliance with FAR requirements.
Practical Implications
- This section ensures that sealed bidding is only used when it is the most effective and fair method for procurement.
- It impacts daily contracting by requiring careful consideration of acquisition requirements before selecting the bidding method.
- Common pitfalls include misapplying sealed bidding to acquisitions that require negotiation or clarification, leading to potential protests or procurement delays.