14.404
Rejection of bids
FAR 14.404 ensures that bid rejections in sealed bidding are handled transparently, fairly, and with proper justification to protect both government and contractor interests.
Overview
FAR 14.404 outlines the rules and procedures for rejecting bids in sealed bidding processes. It covers when and how contracting officers may cancel invitations for bids after opening, reject individual bids, notify bidders of rejection, handle restrictions on disclosure of descriptive literature, and address "all or none" qualifications. The section ensures that bid rejection is handled fairly, transparently, and in accordance with federal procurement policy, protecting both the government's and bidders' interests.
Key Rules
- Cancellation of Invitations After Opening
- Invitations for bids may be canceled after opening only when clearly in the public interest, such as when all bids are unreasonable or requirements change.
- Rejection of Individual Bids
- Individual bids may be rejected for non-responsiveness, non-responsibility, or if they do not conform to essential requirements.
- Notice to Bidders of Rejection of All Bids
- All bidders must be promptly notified if all bids are rejected, with reasons provided upon request.
- Restrictions on Disclosure of Descriptive Literature
- Descriptive literature submitted with bids must be protected from disclosure if marked as proprietary or confidential.
- All or None Qualifications
- Bids conditioned on "all or none" acceptance must be evaluated according to specific rules to ensure fairness and compliance.
Responsibilities
- Contracting Officers: Must ensure bid rejections are justified, documented, and communicated; protect proprietary information; and follow procedures for "all or none" bids.
- Contractors: Must submit responsive and responsible bids, mark proprietary information, and understand the implications of "all or none" qualifications.
- Agencies: Oversee compliance with bid rejection procedures and ensure transparency and fairness.
Practical Implications
- This section exists to maintain integrity in the sealed bidding process and prevent arbitrary rejection of bids.
- It impacts daily contracting by requiring clear documentation and communication when bids are rejected.
- Common pitfalls include failing to properly justify rejections, mishandling proprietary information, or misapplying "all or none" rules.