Sealed Bids vs. Competitive Proposals
When the government determines a requirement is needed and must be procured, they will begin processing a solicitation. The solicitation will identify the service or product it wishes to procure, provide a statement of work of the service or product, includes the date and time submission are due, and, depending on the solicitation method, could contain instructions for additional information to be included in submission. Government will then decide which solicitation method they will use to obtain fair and reasonable pricing from offerors. Two standard methods are known as sealed bidding and competitive proposals.
Sealed bidding, also known as Invitation for Bids (IFB), is used when the government believes an “award can be made to the lowest price offeror who is responsive and responsible and the government’s requirement is reasonably well defined in the form of drawings and specifications” (Murphy, 2009, p. 17). When an IFB is released on a government website, FedBizOpps, any contractor who wishes to submit a bid is allowed. Government cannot limit an IFB to only particular contractors as this solicitation is based on adequate price competition. This is an advantage to contractors who might be new or older contractors who are looking to expand their expertise. Also, contractors are only required to submit the ‘bottom-line’ cost of their bid on IFB solicitations. Contractors must responsive, not taking exception to any terms of the proposed contract in its entirety, and responsible, be able to perform the work and meeting all conditions stated in solicitation however; they are not required to submit cost detail or technical documents such as past performances, performance work statement, cost narratives, etc. with their bids. There are a few disadvantages with this method. Contractors are not able to change their bids once submitted. The government opens all sealed bids to the public at the appointed due date and time. Contractors are able to see every bid
Sealed bidding, also known as Invitation for Bids (IFB), is used when the government believes an “award can be made to the lowest price offeror who is responsive and responsible and the government’s requirement is reasonably well defined in the form of drawings and specifications” (Murphy, 2009, p. 17). When an IFB is released on a government website, FedBizOpps, any contractor who wishes to submit a bid is allowed. Government cannot limit an IFB to only particular contractors as this solicitation is based on adequate price competition. This is an advantage to contractors who might be new or older contractors who are looking to expand their expertise. Also, contractors are only required to submit the ‘bottom-line’ cost of their bid on IFB solicitations. Contractors must responsive, not taking exception to any terms of the proposed contract in its entirety, and responsible, be able to perform the work and meeting all conditions stated in solicitation however; they are not required to submit cost detail or technical documents such as past performances, performance work statement, cost narratives, etc. with their bids. There are a few disadvantages with this method. Contractors are not able to change their bids once submitted. The government opens all sealed bids to the public at the appointed due date and time. Contractors are able to see every bid
References: Murphy, J. E. (2009). Guide to contract pricing: Cost and price analysis for contractors, subcontractors, and government agencies (5th ed.). Vienna, VA: Management Concepts.