Government Contracting - DFARS Part 214 - Sealed Bidding - Win Federal Contracts

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Janetta Brewer
Blue Alchemy Consulting
jbrewer@bluealchemyconsulting.com
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DFARS Part #214
Sealed Bidding
Wednesday, 07 April 2021

DFARS Part #214
Relationship Between the FAR & DFARS
Federal Acquisition Regulation (FAR)
• Regulations required by law and policy.
• Rules apply to Federal government agencies (with a few exceptions).
Defense Federal Acquisition Regulation Supplement (DFARS)
• Regulations required by law and policy.
• Rules apply to Department of Defense.
DFARS Procedures, Guidance, and Information (PGI)
• Internal DoD procedures (mandatory and optional).
• Single access point to DoD guidance, training, and other reference materials (e.g., class deviations,
guides, handbooks, & OSD policy letters.
• Does not include statutes/regs or info that has material impact on the public.

DFARS Part #214
Overview of Sealed Bidding (FAR 14.101)
Sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. The following
steps are involved:
a) Preparation of invitations for bids. Invitations must describe the requirements of the Government clearly,
accurately, and completely. Unnecessarily restrictive specifications or requirements that might unduly limit the
number of bidders are prohibited. The invitation includes all documents (whether attached or incorporated by
reference) furnished prospective bidders for the purpose of bidding.
b) Publicizing the invitation for bids. Invitations must be publicized through distribution to prospective bidders, posting
in public places, and such other means as may be appropriate. Publicizing must occur a sufficient time before public
opening of bids to enable prospective bidders to prepare and submit bids.
c) Submission of bids. Bidders must submit sealed bids to be opened at the time and place stated in the solicitation for
the public opening of bids.
d) Evaluation of bids. Bids shall be evaluated without discussions.
e) Contract award. After bids are publicly opened, an award will be made with reasonable promptness to that
responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the Government,
considering only price and the price-related factors included in the invitation.

DFARS Part #214
Overview of Sealed Bidding (FAR 6.401)
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.
Contract Type (FAR 14.104)
Firm-fixed-price contracts shall be used when the method of contracting is sealed bidding, except that fixed-price contracts
with economic price adjustment clauses may be used if authorized in accordance with FAR 16.203 when some flexibility is
necessary and feasible. Such clauses must afford all bidders an equal opportunity to bid.

DFARS Part #214
DFARS 214.201 – Preparation of Invitations for Bid.
FAR 14.201-5 Part IV—Representations and instructions.
The contracting officer shall prepare the representations and instructions as follows:
***
(c) Section M, Evaluation factors for award. Identify the price related factors other than the bid price that will
be considered in evaluating bids and awarding the contract. See FAR 14.201-8.
DFARS 214.201-5 Part IV—Representations and instructions.
(c) Include an evaluation factor regarding supply chain risk (see subpart DFARS 239.73) when acquiring
information technology, whether as a service or as a supply, that is a covered system, is a part of a covered
system, or is in support of a covered system, as defined in DFARS 239.7301.

DFARS Part #214
Subpart 214.5 – Two-Step Sealed Bidding.
Two-step sealed bidding is designed to obtain the benefits of sealed bidding when adequate specifications are not available.
Step one consists of the request for, submission, evaluation, and (if necessary) discussion of a technical proposal. Step two
involves the submission of sealed priced bids by those who submitted acceptable technical proposals. (FAR 14.501)
FAR 14.503-1 Step one.
(a)(4) Requests for technical proposals shall be synopsized in accordance with FAR part 5. The request must include, as a
minimum … the evaluation criteria, to include all factors and any significant subfactors .
DFARS 214.503-1 Step one.
(a)(4) Include an evaluation factor regarding supply chain risk (see subpart DFARS 239.73) when acquiring information
technology, whether as a service or as a supply, that is a covered system, is a part of a covered system, or is in support of a
covered system, as defined in DFARS 239.7301.

DFARS Part #214
ONLY ONE OFFER
DFARS 214.209 – Cancellation of invitations before opening.
If an invitation for bids allowed fewer than 30 days for receipt of offers, and resulted in only one offer, the
contracting officer shall cancel and resolicit, allowing an additional period of at least 30 days for receipt of offers,
as provided in DFARS 215.371.
DFARS 214.408-1 General.
(b) For acquisitions that exceed the simplified acquisition threshold, if only one offer is received, follow the
procedures at DFARS 215.371.

DFARS Part #214
ONLY ONE OFFER
FAR 14.201-6 Solicitation provisions.
(b) Insert in all invitations for bids the provisions at—
DFARS 214.201-6 Solicitation provisions.
Contracting Officers to insert the following provisions as prescribed.
DFARS 252.215-7007, NOTICE OF INTENT TO RESOLICIT
This solicitation provides offerors fewer than 30 days to submit proposals. In the event that only one offer is
received in response to this solicitation, the Contracting Officer may cancel the solicitation and resolicit for an
additional period of at least 30 days in accordance with DFARS 215.371-2.

DFARS Part #214
ONLY ONE OFFER
DFARS 214.201-6 Solicitation provisions. (cont.)
Contracting Officers (COs) to insert the following provisions as prescribed.
DFARS 252.215-7008, ONLY ONE OFFER (JUL 2019)
After initial submission of offers, if the CO notifies the Offeror that only one offer was received, the Offeror
agrees to—
(1) Submit any additional cost or pricing data that is required in order to determine whether the price is fair
and reasonable or to comply with the statutory requirement for certified cost or pricing data (10 U.S.C. 2306a
and FAR 15.403-3); and
(2) [Unless a Canadian Commercial Corporation], if the acquisition exceeds the certified cost or pricing data
threshold and an exception … does not apply, certify all cost or pricing data.

DFARS Part #214
DFARS 214.202 – General rules for solicitation of bids.
FAR 14.202-5 Descriptive literature.
(a) Policy. Contracting officers must not require bidders to furnish descriptive literature unless it is needed before award to
determine whether the products offered meet the specification and to establish exactly what the bidder proposes to furnish.
(b) Justification. The CO must document in the contract file the reasons why product acceptability can’t be determined
without the submission of descriptive literature, except when the contract specifications require submission.
Requirements of invitation for bids.
- para. 1 provides a list of requirements that the IFB must include.
DFARS 214.202-5 Descriptive literature.
(c) Requirements of invitation for bids. When brand name or equal purchase descriptions are used, use of the provision at
FAR 52.211-6, Brand Name or Equal, satisfies this requirement.

DFARS Part #214
DFARS 214.404 – Rejection of bids.
DFARS 214.404-1 Cancellation of invitations after opening.
(1) The contracting officer shall make the written determinations required by FAR 14.404-1(c) and (e)(1).
(2) If only one offer is received, follow the procedures at DFARS 215.371, in lieu of the procedures at FAR 14.404-1(f).
FAR 14.404-1 Cancellation of invitations after opening.
(a)(1) Preservation of the integrity of the competitive bid system dictates that, after bids have been opened, award must
be made to that responsible bidder who submitted the lowest responsive bid, unless there is a compelling reason to reject all
bids and cancel the invitation.
(c) Invitations may be cancelled and all bids rejected before award but after opening when … the agency head determines
in writing — [inadequate/revised specs, canceled requirements, no reasonable prices, unable to make price reasonableness
determination for single bid received, no responsible bidder, collusion, public’s interest]
(e) Under some circumstances, completion of the acquisition after cancellation of the IFB may be appropriate [with
appropriate determination].

DFARS Part #214
DFARS 214.407 – Mistakes in bids.
DFARS 214.407-3 Other mistakes disclosed before award.
Authority for making a determination under FAR 14.407-3(a), (b), and (d) is delegated for the defense agencies, without power of
redelegation.
FAR 14.407-3 Other mistakes disclosed before award.
In order to minimize delays in contract awards, administrative determinations may be made in connection with mistakes in bids alleged after
opening of bids and before award. 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.
(a) If a bidder requests permission to correct a mistake and clear and convincing evidence establishes both the existence of the mistake
and the bid actually intended [must be as ascertainable substantially from the invitation and the bid itself if it would displace a lower bid], the
agency head may make a determination permitting the bidder to correct the mistake.
(b) If a bidder requests permission to withdraw a bid rather than correct it; the evidence is clear and convincing both as to the existence of
a mistake and as to the bid actually intended; and the bid, both as uncorrected and as corrected, is the lowest received, the agency head may
make a determination to correct the bid and not permit its withdrawal.
(c) If the evidence does not warrant a determination under paragraph (a), (b), or (c) of this section, the agency head may make a
determination that the bid be neither withdrawn nor corrected.

DFARS Part #214
FINAL THOUGHTS
1. Although sealed bidding requires less steps than the Request for Proposal/Quote, it is critical to ensure that
the bid is accurate and complete at the time of submission.
2. The lowest bidder is not guaranteed the contract award. The Offeror must still be found responsive and
responsible by the Contracting Officer.
3. When reading the DFARS (or any agency FAR supplement), it is important to read the DFARS as a companion
to the FAR to ensure you gain the full view your rights and the Contracting Officer’s obligations.

THANK YOU To Our Speaker
Janetta Brewer
Blue Alchemy Consulting
jbrewer@bluealchemyconsulting.com
571-279-7236

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DFARS - 2021
Defense Federal Acquisition Regulation Supplement
Complimentary Webinar Series

Government Contracting - DFARS Part 214 - Sealed Bidding - Win Federal Contracts

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