Bid Shopping ?

[bodenlok]

We are a small business contractor.  A solicitation was advertised and we bid.  Two bids received, we were low.  We were over the IGE (>25%) and so all bids received were thrown out.  HOWEVER, THIS IS AFTER OUR BID WERE READ ON A CONFERENCE CALL AND THEN POSTED ONLINE.   

Question:  With how things have changed since COVID, in that bids can be transmitted electronically and subsequently read in a conference call an hour later, why are they reading bids AND posting bids online, that are greater than 25% over the IGE if they have no intention of making an award.  

This negatively impacts small businesses.  How is it competitive bidding when all the other bidders know what we are willing to perform the work for? 

[Retreadfed]

You keep using the term "bid."  Was the solicitation an IFB with the procurement being conducted under the procedures described in FAR Part 14?

[bodenlok]

"In accordance with FAR 14.101(e) award will be made considering only the price and price-related factors included in the invitation."

 

why do you ask? 

 

[formerfed]

Take a look at FAR 14.4

[C Culham]

I would suggest that if FAR provision 52.214-10 was/is in the solicitation that it is then specific to what the government may do with regard to bids received.  One such action is reject all bids.   The rules of the game so to speak.   Note as well it is a solicitation provision that has been around since 1990.

Further electronic bids have been an option since at least 2016.  See provision 52.214-5 if in the solicitation.

 

[joel hoffman]

Public bids, using Part 14 of the FAR are simply that. Publicly opened and publicly recorded (see FAR 14.4 and related agency supplements).

It’s been around for many, many decades. It was the normal way of receiving sealed bids when I graduated from college in 1971,  both in Federal as well as State and local government contracting.

See also 14.404 Rejection of bids.

See also 14.404-1 (c).

Under certain circumstances, under 14.404-1(e) and (f), the government may even convert a cancelled bid process to an RFP competitive negotiations with the original bidders using appropriate and applicable facets of Part 15 procedures. I was assigned to do that at least three times.

Understandably, the bidders were very unhappy - especially the lowest bidders - after all the bids and line item pricing had been made publicly available.

Thats another story…

 

[joel hoffman]

I will add that, after converting an IFB to RFB, after receiving (non-public) proposals, if prices still appeared to be high or otherwise unreasonable, I would conduct one on one discussions with the proposers.

This was to determine if there were unreasonable requirements or ambiguous requirements or some other reason that could be rectified by amending or correcting the requirements, in order to reduce costs.

Sometimes mistakes in the governments estimate would be revealed.

But the firms weren’t happy with the process because of the previously revealed bid prices.  Some dropped out, usually the higher bidders but once the low bidder…