48 CFR Part 514 — Sealed Bidding

PART 514—SEALED BIDDING Authority: 40 U.S.C. 121(c). Source: 64 FR 37211, July 9, 1999, unless otherwise noted. Subpart 514.2—Solicitation of Bids 514.201 Preparation of invitations for bids. 514.201-1 Uniform contract format. Include the following notice in each solicitation: The information collection requirements contained in this solicitation/contract, are either required by regulation or approved by the Office of Management and Budget pursuant to the Paperwork Reduction Act and assigned OMB Control No. 3090-0162. 514.201-2 Part I—The Schedule. (a) When using Standard Form 33, Solicitation, Offer and Award, include the following cautionary notice: “Notice to Bidders—Use Item 13 of the Standard Form 33, Solicitation, Offer and Award, to offer prompt payment discounts. The Prompt Payment clause of this solicitation sets forth payment terms. Do not insert any statement in Item 13 that requires payment sooner than the time stipulated in the Prompt Payment clause (See FAR 52.232-25, 52.232-26, or 52.232-27, as applicable). EXAMPLE: If you insert “NET 20” in Item 13, GSA will reject your bid as nonresponsive because the entry contradicts the 30 day payment terms specified in the Prompt Payment clause.” (b) When using other authorized forms (e.g., Standard Form 1447, Solicitation/Contract; Standard Form 1449, Solicitation/Contract/Order for Commercial Products and Commercial Services), include the notice in paragraph (a) of this section. Change the reference to the form number, form title, and item number accordingly. [74 FR 47738, Sept. 17, 2009, as amended at 86 FR 68442, Dec. 2, 2021] 514.201-6 Solicitation provisions. Insert the provision at 552.214-70, “All or None” Bids, in invitations for bids when reserving the right to evaluate and make an award on an all or none basis. [86 FR 55519, Oct. 6, 2021] 514.201-7 [Reserved] 514.202 General rules for solicitation of bids. 514.202-4 Bid samples. (a) Requirements for samples in invitations for bids. (2) The FAR limits use of bid samples to cases where the contracting officer cannot describe some characteristics of a product adequately in the specification or purchase description. This usually applies to subjective characteristics. The contracting officer may determine that there is a need to examine objective characteristics of bid samples to determine the responsiveness of a bid. The contracting officer should base the determination on past experience or other valid considerations. In the solicitation, separately list “Subjective Characteristics” and “Objective Characteristics”. (3) Insert the provision at 552.214-72, Bid Sample Requirements, in invitations for bids if bid samples are required. This provision may be modified to fit the circumstances of a procurement. (b) Handling bid samples. (2) If the contracting officer anticipates a claim regarding the contract, the contracting officer shall require that the bid samples be retained until the claim is resolved. (3) The contracting officer shall require that samples from unsuccessful bids be retained until award. After award, these samples may be disposed of following the bidder's instructions. [74 FR 47739, Sept. 17, 2009, as amended at 86 FR 55519, Oct. 6, 2021] 514.202-5 Descriptive literature. Requirements for Invitations for bids. [74 FR 47739, Sept. 17, 2009] 514.203-1 Transmittal to prospective bidders. Prospective bidders, as used in FAR 14.203-1, include both the following: (a) The incumbent contractor, except when its written response to the notice of contract action under FAR subpart 5.2 states a negative interest. (b) Bidders that responded to recent solicitations for the same or similar items. 514.270 Aggregate awards. 514.270-1 Definition. Aggregate award [64 FR 37211, July 9, 1999, as amended at 86 FR 68442, Dec. 2, 2021] 514.270-2 Guidelines for use. (a) GSA usually solicits prices and reserves the right to make award for individual line items. In some cases it serves GSA's best interest to combine two or more line items for an aggregate award. Such cases include when: (1) Users desire uniformity of design, style, and finish (e.g., suites of household furniture). (2) The articles will be assembled and used as a unit, and different manufacturers' components may not be interchangeable. (3) Users have high demand for certain articles, but demand for related articles is insufficient to attract competitive bids (e.g., various sized of socket wrenches). Awarding the low-demand articles in conjunction with the high-demand articles may encourage competition. (4) Awarding the low-demand articles in conjunction with the high-demand articles may encourage competition. (5) One location (delivery point) has a large requirement, and another location has a requirement too small to individually attract competitive bids. (6) Awarding and administering numerous small contracts for similar articles or services is impractical. (b) Before deciding to combine items for aggregate award, the contracting officer should consider the following factors: (1) The capability of bidders to furnish the types and quantities of supplies or services in the aggregate. (2) How grouping delivery points will affect bidders. (3) Which combinations will accurately project the lowest overall cost to the Government. (c) The contracting officer should not use an aggregate award if it will significantly restrict the number of eligible bidders. [64 FR 37211, July 9, 1999, as amended at 74 FR 47739, Sept. 17, 2009] 514.270-3 Evaluation factors for award. The solicitation should clearly state the basis for evaluating bids for aggregate award, require bidders to submit a price on each item within the group or a percentage to be added or subtracted from a list price, and advise bidders that failure to submit prices as required within a group makes a bid ineligible for award for that group. [74 FR 47739, Sept. 17, 2009] 514.270-4 Grouping line items for aggregate award. (a) Supplies and services. (b) Effect on compeition. (c) Grouping different articles. (d) Grouping geographic locations or delivery points. (1) A delivery point may have sufficient requirements so that individual shipments involve economic production runs and carload or truckload quanities. In this case, list it as a separate line item. (2) The types of bidders ( i.e., (3) Transportation costs can affect competition and pricing. They may constitute a significant portion of the total delivered cost. Obtain the advice and assistance of transportation specialists before grouping geographic locations or delivery points. Depending upon the supplies being acquired: (i) Grouping widespread geographic locations or delivery points may reduce competition or result in higher prices. It can cause the loss of “area pricing” advantages provided by a supplier with a single production point. (ii) Conversely, for many small commercial products (hand tools, locks, etc.), manufacturers may quote the same price for delivery anywhere in the U.S. (iii) Tariff boundaries can also affect how manufacturers price deliveries to different areas. [64 FR 37211, July 9, 1999, as amended at 74 FR 47739, Sept. 17, 2009; 86 FR 68442, Dec. 2, 2021] 514.270-5 Evaluation methodologies for aggregate awards. (a) Definite quantity contracts without options. (b) Indefinite quantity contracts, requirements contracts, and options. (1) Weight factors method. (2) Price list method. 514.270-6 Guidelines for using the weight factors method. (a) Use the weight factors method when there are reliable estimates for the quantities needed in an acquisition. Reliable estimates of quantities form the foundation for: (1) Accurate evaluation of the projected cost of each bid. (2) An appropriate determination of which bid is most advantageous to the Government for the aggregate group. (b) Assign a weight factor to each item in a group. Develop the weight factor by calculating the portion of the total quantity in a defined group that each item represents. (c) To evaluate bid prices, first multiply the price bid for each item (unit price X quantity) by its weight factor. Then, add the subtotals together to project the cost for the aggregate group. (d) Estimated quantities may be reduced to smaller numbers by a common denominator. This may help facilitate the computations involved in evaluating bids. (e) Consider all price-related factors identified in the solicitation. Award to the responsive and responsible bidder with the lowest evaluated overall cost to the Government for the aggregate group. This represents the most advantageous bid. [64 FR 37211, July 9, 1999, as amended at 74 FR 47739, Sept. 17, 2009] 514.270-7 Guidelines for using the price list method. (a) General. (b) Solicitation requirements. (1) Include the price list. (2) Include an estimate of requirements. (3) Require the bidder to express its price as “net” or as a percentage added to or subtracted from the list prices for each group. Require the bidder to quote only one percentage factor for each group. This means that the bidder provides one percentage factor that applies to every item in a group; not a separate percentage for each item. “Net” indicates the bidder chooses to submit the list prices as its bid. (4) Identify the percentage factor in paragraph (b)(3) of this section as a price related evaluation factor. (c) Developing list prices. (1) Industry published prices. (2) Industry surveys. (3) Government cost estimates based on knowledge of the supplies or services and previous contract prices. (d) First time use for an product or service. (e) Balanced prices. (f) Evaluation and award. (g) Example. Drills, Twist, High Speed, Under Federal Specification (No. and Date), and Amendment (No. and Date), Amendment (No. and Date) Wire Gauge Sizes, Straight Shank, Short Length, Type C Item No. National Stock No. Drill size Est. quantity Unit List price Group 1 (Items 1 through 5) 1 5133-00-189-9246 1 2,800 Pkg $11.16 2 5133-00-189-9247 2 2,400 Pkg 11.16 3 5133-00-189-9248 3 2,800 Pkg 10.44 4 5133-00-189-9249 4 1,600 Pkg 10.80 5 5133-00-189-9250 5 2,000 Pkg 10.80 The bid on each item above is the list price shown minus/plus ____ percent. (Bidder, insert “net” or a single percentage amount in the blank space and cross out minus or plus, as appropriate.) (h) Special considerations for contracts for store stock items. (i) Special considerations for repair and alteration contracts. (1) List the estimated quantities for work to be performed during both normal working hours and outside of normal working hours. (2) State the percent of work anticipated to be performed during normal working hours. (3) List the unit prices for work to be performed during both normal working hours and outside of normal working hours. (4) Define “normal” in terms of hours and days of the week. (5) Advise bidders of the previous year's total expenditures or portions of that total attributable to the listed items. (6) If providing quantity estimates, state that the estimates are for information only and do not constitute guarantees or commitments to order items under the contract. (7) Solicit two percentage factors for the line item unit prices listed: one for the unit prices for work performed during normal working hours and the second for the unit prices for work performed outside of normal working hours. (8) When the solicitation further groups unit prices by trade or business category, multiple percentages may be required. (9) For the evaluated bid price, add together the following percentages: (i) The percentage of work performed during normal work hours multiplied by the total estimate adjusted by the bidder's percentage factor for that portion of the work, plus (ii) The percentage of work performed during other than normal working hours multiplied by the total estimate adjusted by the bidder's percentage factor for that portion of the work. (10) Consider other price-related factors identified in the solicitation. Make award to the responsible and responsive bidder submitting the lowest overall evaluated bid price for the aggregate group. This represents the most advantageous bid. [64 FR 37211, July 9, 1999, as amended at 74 FR 47739, Sept. 17, 2009; 86 FR 68442, Dec. 2, 2021] Subpart 514.4—Opening of Bids and Award of Contract 514.407 Mistakes in bids. 514.407-3 Other mistakes disclosed before award. Delegation of authority by head of the agency. Under FAR 14.407-3(e), contracting directors (see 502.101) are authorized, without power of redelegation, to make: (a) The determinations regarding corrections and withdrawals under FAR 14.407-3(a), (b), and (c); and (b) The corollary determinations not to permit withdrawal or correction under FAR 14.407-3(d). [74 FR 47740, Sept. 17, 2009] 514.407-4 Mistakes after award. The contracting director and assigned counsel are required to review and approve the contracting officer's determinations under FAR 14.407-4(b) and (c). [74 FR 47740, Sept. 17, 2009]

Related documents

• 48 CFR Part 414 — Sealed Bidding#511005
• 48 CFR Part 914 — Sealed Bidding#511187
• 48 CFR Part 2814 — Sealed Bidding#511564
• 48 CFR Part 814 — Sealed Bidding#511146
• 48 CFR Part 2114 — Sealed Bidding#511494