Sealed bidding and competitive proposals
FAR 6.401 requires contracting officers to choose between sealed bidding and competitive proposals based on specific criteria to ensure fair and effective procurement.
Overview
FAR 6.401 outlines when contracting officers should use sealed bidding versus competitive proposals as methods for soliciting offers and awarding government contracts. It provides criteria for selecting the appropriate method, referencing detailed procedures in FAR Parts 14 (sealed bidding) and 15 (competitive proposals). The section ensures that the solicitation method matches the procurement's requirements, promoting fairness and efficiency in the acquisition process.
Key Rules
- Sealed Bidding
- Use sealed bidding if time allows for the process, award is based on price and price-related factors, no discussions with offerors are needed, and more than one bid is expected.
- Competitive Proposals
- Use competitive proposals if sealed bidding is not suitable. For contracts outside the U.S. and its outlying areas, competitive proposals are generally required due to the need for discussions, unless sealed bidding is otherwise appropriate.
Responsibilities
- Contracting Officers: Must assess each procurement to determine if sealed bidding or competitive proposals are appropriate, following the outlined criteria and referencing Parts 14 and 15 for procedures.
- Contractors: Should understand which solicitation method applies and prepare bids or proposals accordingly.
- Agencies: Must ensure compliance with the selection criteria and proper documentation of the solicitation method.
Practical Implications
- This section helps ensure the government uses the most effective and fair method for each procurement. Contracting officers must carefully evaluate the circumstances of each acquisition. Common pitfalls include misapplying the solicitation method or failing to document the rationale for the chosen approach.