Cancellation of invitations after opening
Cancellations of invitations for bids after opening are only permitted for compelling, documented reasons, and must follow strict procedures to maintain the integrity of the competitive bidding process.
Overview
FAR 14.404-1 outlines the rules and procedures for canceling invitations for bids (IFBs) after bid opening in sealed bidding. The regulation emphasizes the integrity of the competitive bid process, stating that awards should generally be made to the lowest responsive, responsible bidder unless there is a compelling reason to cancel. It details acceptable reasons for cancellation, such as ambiguous specifications, revised requirements, unreasonable prices, or public interest. The section also provides guidance on how to proceed if cancellation occurs, including when negotiation is permitted and when a new solicitation is required. Contracting officers must document the rationale for cancellation and ensure all bidders are treated fairly, especially if negotiations are initiated post-cancellation.
Key Rules
- Award After Bid Opening
- Award must be made to the lowest responsive, responsible bidder unless a compelling reason exists to cancel all bids.
- Anticipating Changes
- Agencies should anticipate and communicate changes before bid opening to avoid unnecessary cancellations.
- Permissible Reasons for Cancellation
- Cancellations are allowed for reasons such as inadequate specifications, revised requirements, unreasonable prices, collusion, or public interest, among others.
- Written Determination
- The agency head must provide a written determination justifying cancellation after bid opening.
- Bid Acceptance Period Extensions
- If administrative delays occur, contracting officers should request extensions of bid acceptance periods from the lowest bidders.
- Post-Cancellation Procedures
- Depending on the reason for cancellation, the acquisition may proceed via negotiation or a new solicitation, with specific requirements for notifying bidders and awarding to the lowest negotiated price.
Responsibilities
- Contracting Officers: Must document and justify cancellations, notify bidders, request bid extensions if needed, and follow proper procedures for negotiation or resolicitation.
- Contractors: Should monitor for notifications of changes or cancellations and be prepared to participate in negotiations if eligible.
- Agencies: Must ensure transparency, fairness, and compliance with FAR requirements when canceling IFBs after opening.
Practical Implications
- This section protects the integrity of the sealed bidding process and ensures cancellations are only made for valid, documented reasons. Contractors should be aware that cancellations after bid opening are rare and must be justified. Failure to follow these procedures can result in protests or legal challenges, so strict adherence is critical for both agencies and bidders.