14.408-1 General
Source: FAR 14.408-1 on acquisition.gov
FAR 14.408-1 ensures contract awards under sealed bidding are made transparently, to the most advantageous responsible bidder, with proper documentation and corrective actions when competition is limited.
Overview
FAR 14.408-1 outlines the general procedures for awarding contracts under sealed bidding. It specifies the requirements for notifying successful bidders, the timing and method of award, and documentation standards. The section ensures that awards are made to responsible bidders whose bids conform to the invitation and are most advantageous to the Government, considering only price and price-related factors. It also addresses actions required when fewer than three bids are received and details the proper use of award forms and documentation.
Key Rules
- Award Notification and Timing
- Contracting officers must notify the successful bidder in writing or electronically within the bid acceptance period or any extension, after obtaining all necessary approvals.
- Award Criteria
- Awards are made to the responsible bidder whose bid conforms to the invitation and is most advantageous to the Government, based solely on price and price-related factors.
- Limited Competition
- If fewer than three bids are received, the contracting officer must investigate the cause and, if appropriate, take corrective action to increase competition in future solicitations.
- Award Documentation
- Awards must be properly executed and furnished to the successful bidder, with all terms and acceptable changes clearly stated. Multiple awards require separate, numbered documents.
- Use of Standard Forms
- Standard Forms SF 33, SF 26, and SF 1447 are used for awards, with informal notices permitted as supplemental communication.
Responsibilities
- Contracting Officers: Ensure timely, compliant award notification and documentation; investigate limited competition; use correct forms; and document all actions.
- Contractors: Ensure bids conform to the invitation and are responsive to all requirements.
- Agencies: Oversee compliance with award procedures and maintain accurate records.
Practical Implications
- This section ensures transparency, fairness, and proper documentation in the award process for sealed bidding. It impacts daily contracting by setting clear procedures for award notification, documentation, and handling limited competition. Common pitfalls include failing to document corrective actions or using incorrect forms, which can delay awards or lead to compliance issues.
(a) The contracting officer shall make a contract award (1) by written or electronic notice, (2) within the time for acceptance specified in the bid or an extension (see 14.404-1(d)), and (3) to that responsible bidder whose bid, conforming to the invitation, will be most advantageous to the Government, considering only price and the price-related factors (see 14.201-8) included in the invitation. Award shall not be made until all required approvals have been obtained and the award otherwise conforms with 14.103-2.
(b) If less than three bids have been received, the contracting officer shall examine the situation to ascertain the reasons for the small number of responses. Award shall be made notwithstanding the limited number of bids. However, the contracting officer shall initiate, if appropriate, corrective action to increase competition in future solicitations for the same or similar items, and include a notation of such action in the records of the invitation for bids (see 14.204).
(c)
(1) Award shall be made by mailing or otherwise furnishing a properly executed award document to the successful bidder.
(2) When a notice of award is issued, it shall be followed as soon as possible by the formal award.
(3) When more than one award results from any single invitation for bids, separate award documents shall be suitably numbered and executed.
(4) When an award is made to a bidder for less than all of the items that may be awarded to that bidder and additional items are being withheld for subsequent award, the award shall state that the Government may make subsequent awards on those additional items within the bid acceptance period.
(5) All provisions of the invitation for bids, including any acceptable additions or changes made by a bidder in the bid, shall be clearly and accurately set forth (either expressly or by reference) in the award document. The award is an acceptance of the bid, and the bid and the award constitute the contract.
(d)
(1) Award is generally made by using the Award portion of https://www.gsa.gov/forms-library/solicitation-offer-and-award" target="_blank">Standard Form (SF) 33, Solicitation, Offer, and Award, or https://www.gsa.gov/forms-library/solicitationcontract" target="_blank">SF 1447, Solicitation/Contract (see 53.214). If an offer from a https://www.gsa.gov/forms-library/solicitation-offer-and-award" target="_blank">SF 33 leads to further changes, the resulting contract shall be prepared as a bilateral document on https://www.gsa.gov/forms-library/awardcontract" target="_blank">SF 26, Award/Contract.
(2) Use of the Award portion of https://www.gsa.gov/forms-library/solicitation-offer-and-award" target="_blank">SF 33, https://www.gsa.gov/forms-library/awardcontract" target="_blank">SF 26, or https://www.gsa.gov/forms-library/solicitationcontract" target="_blank">SF 1447, does not preclude the additional use of informal documents, including electronic transmissions, as notices of awards.