Receipt and safeguarding of bids
FAR 14.401 requires strict security and confidentiality for all bids received before opening to ensure a fair and tamper-proof sealed bidding process.
Overview
FAR 14.401 establishes strict procedures for the receipt and safeguarding of bids in sealed bidding processes. Its primary purpose is to ensure the integrity and confidentiality of bids prior to the official opening, preventing unauthorized access or disclosure of bid information. The regulation mandates that all bids and modifications received before the designated opening time must be securely stored—either in a locked bid box, safe, or secured electronic system. Only authorized government personnel may access information about the number and identity of bids, and only on a need-to-know basis. If an invitation for bids is cancelled, all bids must be returned to the bidders. Special care must be taken with bid samples to prevent premature disclosure of their characteristics. The regulation also outlines procedures for handling envelopes that are not properly identified or are opened by mistake, requiring documentation and immediate resealing by a designated official.
Key Rules
- Secure Storage of Bids
- All bids and modifications must be kept secure and unopened until the official bid opening time.
- Limited Disclosure
- Information about the number and identity of bids is restricted to government employees with a need to know.
- Handling of Bid Samples
- Bid samples must be protected to prevent disclosure before bid opening.
- Procedures for Misidentified or Mistakenly Opened Bids
- Envelopes not properly marked may be opened only for identification by a designated official, with strict documentation and resealing procedures.
- Return of Bids if Solicitation is Cancelled
- All bids must be returned to bidders if the solicitation is cancelled.
Responsibilities
- Contracting Officers: Ensure secure storage, control access to bid information, and oversee proper handling of misidentified or mistakenly opened bids.
- Contractors: Properly mark and submit bids to avoid accidental opening or misidentification.
- Agencies: Implement and enforce security measures for bid receipt and storage, and designate officials for handling exceptions.
Practical Implications
- This section exists to maintain the fairness and confidentiality of the sealed bidding process, protecting both the government and bidders from potential tampering or premature disclosure. Failure to comply can result in bid protests, compromised procurements, or legal challenges. Common pitfalls include improper marking of bid envelopes, inadequate security of bid storage, and unauthorized disclosure of bid information.