14.502 Conditions for use
Source: FAR 14.502 on acquisition.gov
Two-step sealed bidding is allowed when technical evaluation is needed and specific conditions are met, regardless of set-aside status or other common contract factors.
Overview
FAR 14.502 outlines the specific conditions under which two-step sealed bidding may be used instead of negotiation in federal contracting. This method is preferred when certain criteria are met, particularly when specifications are not fully defined and technical evaluation is necessary. The section also clarifies that several factors, such as multi-year contracting or various small business set-asides, do not prevent the use of two-step sealed bidding.
Key Rules
- Conditions for Two-Step Sealed Bidding
- Two-step sealed bidding is appropriate when specifications are incomplete or restrictive, technical evaluation is needed, multiple qualified sources are expected, sufficient time exists, and a firm-fixed-price or fixed-price with economic price adjustment contract will be used.
- Non-Preclusive Factors
- The use of two-step sealed bidding is not precluded by multi-year contracting, government-furnished property, small business set-asides (including HUBZone, service-disabled veteran-owned, and women-owned programs), or acquisition of production quantities under performance specifications.
Responsibilities
- Contracting Officers: Must ensure all five conditions are met before using two-step sealed bidding and confirm that none of the listed factors preclude its use.
- Contractors: Should be prepared for technical proposal evaluation and understand that set-aside status or government property does not exclude them from this process.
- Agencies: Must provide clear evaluation criteria and allow sufficient time for the two-step process.
Practical Implications
- This section ensures that two-step sealed bidding is only used when it is the most appropriate method, balancing the need for technical evaluation with the benefits of sealed bidding. Contractors should be aware that eligibility for set-asides or the presence of government property does not affect the use of this method. Common pitfalls include failing to meet all required conditions or misunderstanding when two-step sealed bidding is permissible.
(a) Unless other factors require the use of sealed bidding, two-step sealed bidding may be used in preference to negotiation when all of the following conditions are present:
(1) Available specifications or purchase descriptions are not definite or complete or may be too restrictive without technical evaluation, and any necessary discussion, of the technical aspects of the requirement to ensure mutual understanding between each source and the Government.
(2) Definite criteria exist for evaluating technical proposals
(3) More than one technically qualified source is expected to be available.
(4) Sufficient time will be available for use of the two-step method.
(5) A firm-fixed-price contract or a fixed-price contract with economic price adjustment will be used.
(b) None of the following precludes the use of two-step sealed bidding:
(1) Multi-year contracting.
(2) Government property to be made available to the successful bidder.
(3) A total small business set-aside (see 19.502-2).
(4) The use of a set-aside or price evaluation preference for HUBZone small business concerns (see subpart 19.13).
(5) The use of a set-aside for service-disabled veteran-owned small business concerns (see subpart 19.14).
(6) The use of a set-aside for economically disadvantaged women-owned small business concerns and women-owned small business concerns eligible under the Women-Owned Small Business Program (see subpart 19.15).
(7) A first or subsequent production quantity is being acquired under a performance specification.