Contract Award-Sealed Bidding-Construction
FAR 52.214-19 requires construction contract awards via sealed bidding to be based solely on price and specified price-related factors, with strict rules against materially unbalanced bids.
Overview
FAR 52.214-19 outlines the procedures and criteria for awarding construction contracts through sealed bidding. This provision mandates that the Government evaluates bids strictly based on price and specified price-related factors, without engaging in discussions with bidders. The contract is awarded to the responsible bidder whose bid is most advantageous to the Government, provided it conforms to the solicitation requirements. The Government reserves the right to reject any or all bids, waive minor irregularities, and accept any item or combination of items unless restricted by the solicitation. Importantly, the provision addresses the issue of materially unbalanced bids, allowing the Government to reject bids where pricing between line items is significantly disproportionate and could result in higher overall costs or advance payments.
Key Rules
- Award Based on Price and Price-Related Factors
- Bids are evaluated without discussions, and award goes to the responsible bidder offering the most advantageous price.
- Government's Right to Reject or Waive
- The Government may reject any or all bids and waive minor informalities or irregularities.
- Acceptance of Items or Combinations
- The Government may accept any item or combination of items unless restricted by the solicitation.
- Materially Unbalanced Bids
- Bids with significantly unbalanced pricing between line items may be rejected as nonresponsive if they pose a risk of higher overall cost or advance payment.
Responsibilities
- Contracting Officers: Must evaluate bids strictly per the provision, ensure compliance with price-related factors, and identify materially unbalanced bids.
- Contractors: Must submit responsive, balanced bids that conform to solicitation requirements and avoid unbalanced pricing.
- Agencies: Oversee the integrity of the sealed bidding process and ensure awards are made in accordance with the provision.
Practical Implications
- Ensures a fair, transparent process for construction contract awards via sealed bidding.
- Contractors must carefully structure their bids to avoid unbalanced pricing.
- Common pitfalls include submitting bids with pricing irregularities or failing to conform to solicitation requirements, which can lead to rejection.