Contract Award-Sealed Bidding
FAR 52.214-10 ensures sealed bidding awards are based on price and specified factors, while allowing the Government flexibility to reject, accept, or waive bids and to reject materially unbalanced bids.
Overview
FAR 52.214-10 outlines the procedures and criteria for awarding contracts under sealed bidding. This provision ensures that contract awards are made to the responsible bidder whose bid is most advantageous to the Government, considering only price and specified price-related factors. The Government reserves the right to reject any or all bids, accept bids other than the lowest, and waive minor irregularities. Bids may be accepted for any item or group of items, and awards can be made for quantities less than those offered unless otherwise specified. A binding contract is formed upon written award or acceptance within the specified time. The provision also addresses the rejection of materially unbalanced bids, which could pose a risk of higher overall costs or advance payments to the Government.
Key Rules
- Evaluation and Award Criteria
- Contracts are awarded based on price and price-related factors, without discussions, to the responsible bidder whose bid is most advantageous to the Government.
- Government Rights
- The Government may reject any or all bids, accept other than the lowest bid, and waive informalities or minor irregularities.
- Bid Acceptance Flexibility
- The Government can accept any item or group of items and may award for quantities less than those offered, unless the bidder limits their bid.
- Contract Formation
- A binding contract is created when the Government provides written award or acceptance within the bid acceptance period.
- Materially Unbalanced Bids
- Bids with significantly unbalanced pricing between line items may be rejected if they pose a risk of higher overall costs or advance payments.
Responsibilities
- Contracting Officers: Must evaluate bids per the provision, ensure awards are made to responsible bidders, and monitor for unbalanced bids.
- Contractors: Must submit responsive, balanced bids and specify any limitations on items or quantities.
- Agencies: Oversee compliance with sealed bidding procedures and ensure fair competition.
Practical Implications
- This provision ensures transparency and fairness in sealed bidding, emphasizing price as the primary factor.
- Contractors must carefully structure their bids to avoid unbalanced pricing and clearly state any limitations.
- Common pitfalls include submitting unbalanced bids or failing to specify bid limitations, which can lead to rejection.