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FAR and DFARS › FAR Part 14: Sealed Bidding › Subpart 14.5

FAR 14.502 Conditions for use.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains when a contractor might see two-step sealed bidding used instead of negotiation. It applies when specifications are not fully definite or complete, technical evaluation and discussion are needed, definite technical evaluation criteria exist, more than one qualified source is expected, enough time is available, and a firm-fixed-price or fixed-price contract with economic price adjustment will be used. It also clarifies that certain small business set-asides and other contract features do not prevent using this method.

Applies to: Contracting officers and contractors involved in two-step sealed bidding

Key terms: two-step sealed bidding · negotiation · specifications · technical evaluation · firm-fixed-price contract

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Unless other factors require the use of sealed bidding, two-step sealed bidding may be used in preference to negotiation when all of the following conditions are present:

(1) Available specifications or purchase descriptions are not definite or complete or may be too restrictive without technical evaluation, and any necessary discussion, of the technical aspects of the requirement to ensure mutual understanding between each source and the Government.

(2) Definite criteria exist for evaluating technical proposals.

(3) More than one technically qualified source is expected to be available.

(4) Sufficient time will be available for use of the two-step method.

(5) A firm-fixed-price contract or a fixed-price contract with economic price adjustment will be used.

(b) None of the following precludes the use of two-step sealed bidding:

(1) Multi-year contracting.

(2) Government property to be made available to the successful bidder.

(3) A total small business set-aside (see 19.502-2).

(4) The use of a set-aside or price evaluation preference for HUBZone small business concerns (see subpart 19.13).

(5) The use of a set-aside for service-disabled veteran-owned small business concerns (see subpart 19.14).

(6) The use of a set-aside for economically disadvantaged women-owned small business concerns and women-owned small business concerns eligible under the Women-Owned Small Business Program (see subpart 19.15).

(7) A first or subsequent production quantity is being acquired under a performance specification.

Sections it refers to

  • 19.502-2 Total small business set-asides.

← 14.501 General. · 14.503 Procedures. →

Rule changes for FAR Part 14

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 14.502 Conditions for use · SpendQuery