The information shall be furnished even though a pre-bid conference is held. No award shall be made on the invitation unless such amendment has been issued in sufficient time to permit all prospective bidders to consider such information in submitting or modifying their bids.
Invitations should not be cancelled unless cancellation is clearly in the public interest; e. When an invitation issued electronically is cancelled, a general notice of cancellation shall be posted electronically, the bids received shall not be viewed, and the bids shall be purged from primary and backup data storage systems. Cancellations shall be recorded in accordance with See subpart 9.
Information concerning proposed acquisitions shall not be released outside the Government before solicitation except for presolicitation notices in accordance with Within the Government, such information shall be restricted to those having a legitimate interest. Releases of information shall be made 1 to all prospective bidders, and 2 as nearly as possible at the same time, so that one prospective bidder shall not be given unfair advantage over another.
See 3. Discussions with prospective bidders regarding a solicitation shall be conducted and technical or other information shall be transmitted only by the contracting officer or superiors having contractual authority or by others specifically authorized.
Such personnel shall not furnish any information to a prospective bidder that alone or together with other information may afford an advantage over others. However, general information that would not be prejudicial to other prospective bidders may be furnished upon request; e.
Contracting officers shall comply with the economic purchase quantity planning requirements for supplies in subpart 7. See 7. Such compliance enables bidders to stand on an equal footing and maintain the integrity of the sealed bidding system. If a bidder uses its own bid form or a letter to submit a bid, the bid may be considered only if-. Bids shall be submitted so that they will be received in the office designated in the invitation for bids not later than the exact time set for opening of bids.
If the solicitation authorizes facsimile bids, bids may be modified or withdrawn via facsimile received at any time before the exact time set for receipt of bids, subject to the conditions specified in the provision prescribed in Modifications received by facsimile shall be sealed in an envelope by a proper official. A The date and time of receipt and by whom; and. B The number of invitation for bids; and. They may use any transmission method authorized by the IFB i.
If no time is specified in the IFB, the time for receipt is p. If the IFB authorizes facsimile bids, bids may be withdrawn via facsimile received at any time before the exact time set for receipt of bids, subject to the conditions specified in the provision at A bid may be withdrawn in person by a bidder or its authorized representative if, before the exact time set for receipt of bids, the identity of the person requesting withdrawal is established and the person signs a receipt for the bid.
Upon withdrawal of an electronically transmitted bid, the data received must not be viewed and, where practicable, must be purged from primary and backup data storage systems. However, any bid bond or guarantee must be returned.
This subpart contains procedures for the receipt, handling, opening, and disposition of bids including mistakes in bids, and subsequent award of contracts. Except as provided in paragraph b of this section, the bids shall not be opened or viewed, and shall remain in a locked bid box, a safe, or in a secured, restricted-access electronic bid box. If an invitation for bids is cancelled, bids shall be returned to the bidders.
Necessary precautions shall be taken to ensure the security of the bid box or safe. Before bid opening, information concerning the identity and number of bids received shall be made available only to Government employees. Such disclosure shall be only on a "need to know" basis. When bid samples are submitted, they shall be handled with sufficient care to prevent disclosure of characteristics before bid opening.
If a sealed bid is opened by mistake e. This official shall immediately write on the envelope 1 an explanation of the opening, 2 the date and time opened, and 3 the invitation for bids number, and shall sign the envelope.
The official shall then immediately reseal the envelope. The officer shall then 1 personally and publicly open all bids received before that time, 2 if practical, read the bids aloud to the persons present, and 3 have the bids recorded. The original of each bid shall be carefully safeguarded, particularly until the abstract of bids required by Original bids shall not be allowed to pass out of the hands of a Government official unless a duplicate bid is not available for public inspection.
The original bid may be examined by the public only under the immediate supervision of a Government official and under conditions that preclude possibility of a substitution, addition, deletion, or alteration in the bid. The general public may not attend bid openings for classified acquisitions. A bidder or its representative may attend and record the results if the individual has the appropriate security clearance. The contracting officer also may make the bids available at a later time to properly cleared individuals who represent bidders.
No public record shall be made of bids or bid prices received in response to classified invitations for bids. If practical before issuance of a formal amendment of the invitation, the determination shall be otherwise communicated to prospective bidders who are likely to attend the scheduled bid opening. In such cases, the time of actual bid opening shall be deemed to be the time set for bid opening for the purpose of determining "late bids" under A note should be made on the abstract of bids or otherwise added to the file explaining the circumstances of the postponement.
Where bid items are too numerous to warrant complete recording of all bids, abstract entries for individual bids may be limited to item numbers and bid prices. In preparing these forms, the extra columns and SF , Abstract of Offers-Continuation, and OF A , Abstract of Offer-Construction, Continuation Sheet, may be used to label and record such information as the contracting activity deems necessary. Such abstracts shall not contain information regarding failure to meet minimum standards of responsibility, apparent collusion of bidders, or other notations properly exempt from disclosure to the public in accordance with agency regulations implementing subpart This will permit bidders to change their bids and prevent unnecessary exposure of bid prices.
Award should be made on the initial invitation for bids and the additional quantity should be treated as a new acquisition. For example, bids shall be rejected in which the bidder-. A condition goes to the substance of a bid where it affects price, quantity, quality, or delivery of the items offered. Unreasonableness of price includes not only the total price of the bid, but the prices for individual line items as well. Accordingly, the contracting officer shall reject the bid unless the transfer is effected by merger, operation of law, or other means not barred by 41 U.
When it is determined necessary to reject all bids, the contracting officer shall notify each bidder that all bids have been rejected and shall state the reason for such action.
When a bid is accompanied by descriptive literature as defined in 2. The restriction renders the bid nonresponsive if it prohibits the disclosure of sufficient information to permit competing bidders to know the essential nature and type of the products offered or those elements of the bid that relate to quantity, price, and delivery terms.
The provisions of this paragraph do not apply to unsolicited descriptive literature submitted by a bidder if such literature does not qualify the bid see Unless the solicitation provides otherwise, a bid may be responsive notwithstanding that the bidder specifies that award will be accepted only on all, or a specified group, of the items. Bidders shall not be permitted to withdraw or modify "all or none" qualifications after bid opening since such qualifications are substantive and affect the rights of other bidders.
A minor informality or irregularity is one that is merely a matter of form and not of substance. It also pertains to some immaterial defect in a bid or variation of a bid from the exact requirements of the invitation that can be corrected or waived without being prejudicial to other bidders. The defect or variation is immaterial when the effect on price, quantity, quality, or delivery is negligible when contrasted with the total cost or scope of the supplies or services being acquired.
The contracting officer either shall give the bidder an opportunity to cure any deficiency resulting from a minor informality or irregularity in a bid or waive the deficiency, whichever is to the advantage of the Government.
Examples of minor informalities or irregularities include failure of a bidder to-. If a bid received at the Government facility by electronic data interchange is unreadable to the degree that conformance to the essential requirements of the invitation for bids cannot be ascertained, the contracting officer immediately shall notify the bidder that the bid will be rejected unless the bidder provides clear and convincing evidence-. After the opening of bids, contracting officers shall examine all bids for mistakes.
In cases of apparent mistakes and in cases where the contracting officer has reason to believe that a mistake may have been made, the contracting officer shall request from the bidder a verification of the bid, calling attention to the suspected mistake. If the bidder alleges a mistake, the matter shall be processed in accordance with this section Such actions shall be taken before award.
The contracting officer first shall obtain from the bidder a verification of the bid intended. Examples of apparent mistakes are-. Correction shall not be made on the face of the bid; however, it shall be reflected in the award document. In order to minimize delays in contract awards, administrative determinations may be made as described in this The authority to permit correction of bids is limited to bids that, as submitted, are responsive to the invitation and may not be used to permit correction of bids to make them responsive.
This authority is in addition to that in A mere statement by the administrative officials that they are satisfied that an error was made is insufficient. Action taken to verify bids must be sufficient to reasonably assure the contracting officer that the bid as confirmed is without error, or to elicit the allegation of a mistake by the bidder. To assure that the bidder will be put on notice of a mistake suspected by the contracting officer, the bidder should be advised as appropriate-.
If the time for acceptance of bids is likely to expire before a decision can be made, the contracting officer shall request all bidders whose bids may become eligible for award to extend the time for acceptance of their bids in accordance with If the bidder whose bid is believed erroneous does not or cannot grant an extension of time, the bid shall be considered as originally submitted but see paragraph g 5 of this section.
If the bidder alleges a mistake, the contracting officer shall advise the bidder to make a written request to withdraw or modify the bid. A A description of the supplies or services involved;. B The expiration date of the bid in question and of the other bids submitted;. C Specific information as to how and when the mistake was alleged;. D A summary of the evidence submitted by the bidder;. F Any additional pertinent evidence; and.
G A recommendation that either the bid be considered for award in the form submitted, or the bidder be authorized to withdraw or modify the bid. Attempts made to obtain the information required and the action taken with respect to the bid shall be fully documented. Copies of all such determinations shall be included in the file. In addition, it must be clear that the mistake was-.
A Describing the supplies or services involved;. B Specifying how and when the mistake was alleged or disclosed;. C Summarizing the evidence submitted by the contractor and any additional evidence considered pertinent;. F Setting forth the course of action with respect to the alleged mistake that the contracting officer considers proper on the basis of the evidence, and if other than a change in contract price is recommended, the manner by which the supplies or services will otherwise be acquired; and.
G Disclosing the status of performance and payments under the contract, including contemplated performance and payments. Award shall not be made until all required approvals have been obtained and the award otherwise conforms with Award shall be made notwithstanding the limited number of bids.
However, the contracting officer shall initiate, if appropriate, corrective action to increase competition in future solicitations for the same or similar items, and include a notation of such action in the records of the invitation for bids see The award is an acceptance of the bid, and the bid and the award constitute the contract.
The price analysis techniques in In each case the determination shall be made in the light of all prevailing circumstances. Particular care must be taken in cases where only a single bid is received. However, any discount offered will form a part of the award, and will be taken by the payment center if payment is made within the discount period specified by the bidder.
As an alternative to indicating a discount in conjunction with the offer, bidders may prefer to offer discounts on individual invoices. If the bidder will not agree to an approved clause, the award may be made on the basis of the bid as originally submitted.
However, after evaluation, if the bidder offering the lower ceiling is in a position to receive the award, the award shall reflect the lower ceiling. If time permits, the bidders involved shall be given an opportunity to attend the drawing. The drawing shall be witnessed by at least three persons, and the contract file shall contain the names and addresses of the witnesses and the person supervising the drawing. See subpart In such circumstances, only information concerning location of the abstract of offers need be given.
However, when such requests require so much work as to interfere with the normal operations of the contracting office, the inquirer will be advised where a copy of the abstract of offers may be seen. In addition to The name of the successful bidder and the contract price will be furnished to unsuccessful bidders only upon request. Information regarding a classified award shall not be furnished by telephone. Two-step sealed bidding is a combination of competitive procedures designed to obtain the benefits of sealed bidding when adequate specifications are not available.
This method is especially useful in acquisitions requiring technical proposals, particularly those for complex items. It is conducted in two steps:. No pricing is involved. The objective is to determine the acceptability of the supplies or services offered. As used in this context, the word "technical" has a broad connotation and includes, among other things, the engineering approach, special manufacturing processes, and special testing techniques. It is the proper step for clarification of questions relating to technical requirements.
Conformity to the technical requirements is resolved in this step, but not responsibility as defined in 9. Bids submitted in step two are evaluated and the awards made in accordance with subparts The request must include, as a minimum, the following:. If multiple proposals are authorized, see The request shall also indicate that the information is not binding on the Government and that the actual delivery or performance requirements will be contained in the invitation issued under step two.
The period may vary with the complexity and number of proposals involved. However, the evaluation should be completed quickly. If this is not the case, the contracting officer shall request bidders whose proposals may be made acceptable to submit additional clarifying or supplementing information. The contracting office shall identify the nature of the deficiencies in the proposal or the nature of the additional information required.
The contracting officer may also arrange discussions for this purpose. No proposal shall be discussed with any offeror other than the submitter. Such time may be extended in the discretion of the contracting officer.
If the additional information incorporated as part of a proposal within the final time fixed by the contracting officer establishes that the proposal is acceptable, it shall be so categorized. Otherwise, it shall be categorized as unacceptable. In a sealed-bid auction, there is an understanding that each bidder shares in that risk. There can be instances where the highest bid is not chosen by the seller.
The seller could reject the current bids and then ask for final bids from the two bidders who made the highest offers. The seller might also opt to end the auction and discuss terms with some of the bidders.
Such an option may be put into play if the seller believes a more open approach can net better results. Treasury Bonds. Fixed Income Essentials. Stock Markets. Real Estate Investing. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.
We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Alternative Investments Real Estate Investing. What Is a Sealed-Bid Auction A sealed-bid auction is a type of auction process in which all bidders simultaneously submit sealed bids to the auctioneer so that no bidder knows how much the other auction participants have bid.
Key Takeaways A sealed-bid auction is a type of auction in which bids are not viewed until the auction date. The bids are sealed, often physically in an envelope, and are all opened at once. Unlike an open bid, where buyers can make multiple bids and compete against each other actively, in a sealed-bid auction, they only get once chance.
Related Terms Bid Definition A bid is an offer made by an investor, trader, or dealer to buy a security that stipulates the price and the quantity the buyer is willing to purchase.
What You Need to Know About Auctions An auction is a sales event where buyers place competitive bids on assets or services. Read the pros and cons of buying and selling through auctions. How Absolute Auctions Work in Foreclosures and Other Circumstances An absolute auction is a type of auction where the sale is awarded to the highest bidder.
Absolute auctions do not have a reserve price, which sets a minimum required bid for the item to be sold. Auction House A company that facilitates the buying and selling of assets, such as works of art and collectibles. What Is a Bid-Wanted Announcement? What Is Bid Rigging? Bid rigging is an illegal practice that involves competing parties colluding to choose the winner of a bidding process.
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