Rejection of individual bids
Bids that fail to strictly comply with essential IFB requirements or introduce unauthorized conditions must be rejected to ensure fairness and integrity in government procurement.
Overview
FAR 14.404-2 outlines the specific circumstances under which individual bids must or may be rejected during the sealed bidding process. The regulation ensures that only bids fully compliant with the invitation for bids (IFB) requirements are considered, protecting the integrity and fairness of the procurement process. It details mandatory rejection criteria (such as nonconformance with essential requirements, specifications, delivery schedules, or bid guarantees) and discretionary grounds (such as unreasonably high prices or materially unbalanced pricing). The section also addresses the handling of bids from suspended or debarred entities, non-responsible bidders, and the procedural requirements for preserving rejected bids and related documentation.
Key Rules
- Mandatory Rejection for Nonconformance
- Bids not meeting essential requirements, specifications, or delivery schedules must be rejected unless alternates are authorized and compliant.
- Conditional or Qualified Bids
- Bids imposing unauthorized conditions or limiting government rights/liability must be rejected to ensure fairness.
- Correction of Non-Substantive Conditions
- Low bidders may be allowed to remove non-substantive, non-prejudicial conditions from their bids.
- Price Reasonableness and Balance
- Bids may be rejected if prices are unreasonable or materially unbalanced across line items.
- Suspended, Debarred, or Non-Responsible Bidders
- Bids from such entities must be rejected unless exceptions apply.
- Bid Guarantee Requirements
- Failure to provide a required bid guarantee results in rejection, with limited exceptions.
- Asset Transfers
- Bids are rejected if the bidder’s assets are transferred post-bid, except in specific legal circumstances.
- Recordkeeping
- Originals of rejected bids and findings must be preserved with acquisition records.
Responsibilities
- Contracting Officers: Must rigorously evaluate bids for compliance, document and preserve rejected bids, and ensure fairness in the process.
- Contractors: Must submit bids that fully comply with all IFB requirements, avoid unauthorized conditions, and provide required guarantees.
- Agencies: Oversee adherence to rejection criteria and maintain proper records for audit and review.
Practical Implications
- This section exists to maintain the integrity and fairness of the sealed bidding process by ensuring only compliant bids are considered.
- Contractors must pay close attention to all IFB requirements and avoid adding conditions or failing to provide required documentation.
- Common pitfalls include submitting conditional bids, omitting bid guarantees, or failing to meet delivery or specification requirements, all of which can lead to automatic rejection.