Procurement Procedures

Three different types of procurement procedures are widely used within the federal government. They are:

• Simplified Acquisition Procedures (SAP)
• Sealed Bidding
• Contracting by Negotiation

Contracting by Negotiation

Contracting by Negotiation is for competitive and non-competitive or sole source bids. This is the default that is usually chosen when a contract is above the Simplified Acquisition Threshold (SAT).

FAR 15 defines these procedures, similarly to how FAR 13 defines SAP.

Sealed Bidding

Sealed Bidding is the procurement procedure that is most common for an invitation for bids (IFBs). The sealed bid process is commonly used for construction contracts.

FAR 14 defines Sealed Bidding procedures.

During this process, the solicitation will include a public award opening day. This is where the contracting officers will receive the bids, open them in front of an audience, and go through each one to see who should be awarded.

What is a Sealed Bid?

A sealed bid mainly uses the Uniform Contract Format (UCF). This way all submitted proposals are easily comparable and can be looked through quickly. This helps the contracting officer since they know where to look and can more easily compare each offer.

When an offeror has finished their proposal, the solicitation will direct them to get a physical copy of their bid and mail or hand deliver the proposal to a specific address before an appointed time. The proposal will be in a sealed envelope or package that will stay closed until the award reading ceremony.

At the deadline, the contracting officer will open the bids and evaluate them. Once they are all publicly opened, an award will be made to the bidder they find most capable and who provides the best benefits for the federal government.