14.501
General
Two-step sealed bidding allows the government to clarify technical requirements before requesting prices, ensuring fair competition for complex acquisitions.
Overview
FAR 14.501 outlines the general principles of two-step sealed bidding, a hybrid procurement method used when the government cannot provide adequate specifications for sealed bidding. This approach is particularly valuable for complex acquisitions requiring technical proposals. The process is divided into two distinct steps: first, the government requests and evaluates technical proposals (without pricing) to determine their acceptability; second, only those offerors with acceptable technical proposals are invited to submit sealed, priced bids. This method helps the government clarify technical requirements and develop more precise specifications for future procurements, while still leveraging the competitive benefits of sealed bidding.
Key Rules
- Two-Step Process
- Step one involves submission and evaluation of technical proposals without pricing; step two involves submission of sealed priced bids by technically acceptable offerors.
- Technical Proposal Evaluation
- The first step focuses on technical acceptability, including engineering, manufacturing, and testing approaches, but does not address price or contractor responsibility.
- Award Procedures
- Awards in step two are made according to the standard sealed bidding procedures in subparts 14.3 and 14.4.
Responsibilities
- Contracting Officers: Must structure and manage the two-step process, ensuring technical requirements are clarified and only acceptable proposals proceed to bidding.
- Contractors: Must submit detailed technical proposals in step one and, if accepted, submit sealed priced bids in step two.
- Agencies: Oversee the process to ensure fair competition and adequate specification development.
Practical Implications
- This section enables the government to acquire complex items when specifications are not fully developed, reducing risk of inadequate requirements.
- Contractors must be prepared for a two-phase process, first focusing on technical merit, then on price.
- Common pitfalls include submitting incomplete technical proposals or misunderstanding the non-price focus of step one.