6.401 Sealed bidding and competitive proposals
Source: FAR 6.401 on acquisition.gov
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.
Sealed bidding and competitive proposals, as described in parts 14 and 15, are both acceptable procedures for use under subparts 6.1,6.2; and, when appropriate, under subpart 6.3.
(a) Sealed bids. (See part 14 for procedures.) Contracting officers shall solicit sealed bids if-
(1) Time permits the solicitation, submission, and evaluation of sealed bids;
(2) The award will be made on the basis of price and other price-related factors;
(3) It is not necessary to conduct discussions with the responding offerors about their bids; and
(4) There is a reasonable expectation of receiving more than one sealed bid.
(b) Competitive proposals. (See part 15 for procedures.)
(1) Contracting officers may request competitive proposals if sealed bids are not appropriate under paragraph (a) of this section.
(2) Because of differences in areas such as law, regulations, and business practices, it is generally necessary to conduct discussions with offerors relative to proposed contracts to be made and performed outside the United States and its outlying areas. Competitive proposals will therefore be used for these contracts unless discussions are not required and the use of sealed bids is otherwise appropriate.