14.408-6
Equal low bids
When two or more low bids are tied, FAR 14.408-6 requires awards to follow a set priority favoring small and labor surplus area businesses, with ties ultimately broken by a witnessed drawing by lot and proper documentation.
Overview
FAR 14.408-6 outlines the procedures for awarding contracts when two or more low bids are equal in all respects under sealed bidding. The regulation establishes a clear order of priority for awarding such contracts, favoring small businesses and labor surplus area concerns, and provides a method for breaking ties if priorities do not resolve the tie. It also requires documentation and specific contract language to ensure compliance with the priority justification.
Key Rules
- Order of Award Priority
- Contracts must be awarded first to small business concerns that are also labor surplus area concerns, then to other small businesses, and finally to other business concerns if a tie remains.
- Drawing by Lot
- If a tie persists after applying the priority order, the award is made by a drawing by lot among the remaining bidders, with an opportunity for bidders to attend and at least three witnesses present.
- Documentation and Contract Language
- The contracting officer must document the drawing process and include a written agreement in the contract reflecting the circumstances justifying the priority or drawing by lot.
Responsibilities
- Contracting Officers: Must apply the priority order, conduct and document drawings by lot if needed, and ensure proper contract language is included.
- Contractors: Must be prepared to comply with the circumstances justifying their selection if awarded under these procedures.
- Agencies: Must oversee and ensure the integrity and documentation of the tie-breaking process.
Practical Implications
- This section ensures fairness and transparency in tie-breaking for sealed bids, with a preference for small and labor surplus area businesses. Contractors should understand their status and be prepared for possible drawings by lot. Proper documentation is critical to avoid disputes or challenges.