FAR 14.103-1—General.
Plain-English Summary
FAR 14.103-1 is the general policy statement for sealed bidding. It addresses three related topics: when sealed bidding must be used, whether it may be used for classified acquisitions, and where to find the pricing policy for modifications to sealed bid contracts. In practice, this section tells contracting personnel that sealed bidding is not optional when the conditions for its use under FAR 6.401(a) are present, and that the competition method must be selected consistently with Part 6 requirements. It also confirms that classified procurements can use sealed bidding only if doing so does not conflict with agency security requirements, which means security rules can override the normal preference for sealed bidding. Finally, it points readers to FAR 15.403-4(a)(1)(iii) for the policy governing pricing of modifications to sealed bid contracts, so users know where to look for the applicable pricing rule rather than assuming it is stated here.
Key Rules
Use sealed bidding when required
Sealed bidding must be used whenever the conditions in FAR 6.401(a) are met. If those conditions apply, the contracting activity does not have discretion to choose another source selection method for that proposed contract action under Part 6.
Applies to Part 6 actions
This requirement applies to any proposed contract action under Part 6. In other words, the decision whether to use sealed bidding is tied to the competition and acquisition planning rules in Part 6, not just to the mechanics of the solicitation.
Classified acquisitions allowed with limits
Sealed bidding may be used for classified acquisitions only if its use does not violate agency security requirements. Security restrictions can therefore make sealed bidding inappropriate even when it might otherwise be permissible.
Modification pricing rule is elsewhere
The policy for pricing modifications of sealed bid contracts is not stated in this section. Users must look to FAR 15.403-4(a)(1)(iii) for the applicable pricing policy.
Responsibilities
Contracting Officer
Determine whether the conditions in FAR 6.401(a) are met and, if so, use sealed bidding for the proposed Part 6 contract action. The contracting officer must also ensure that any use of sealed bidding for a classified acquisition complies with agency security requirements and must consult FAR 15.403-4(a)(1)(iii) when pricing modifications to sealed bid contracts.
Agency
Establish and enforce security requirements for classified acquisitions and ensure those requirements are applied when deciding whether sealed bidding is permissible. The agency must also support acquisition personnel in applying the correct competition method under Part 6.
Contractor
Understand that sealed bidding may be the required method when Part 6 conditions are met and that modification pricing for sealed bid contracts will be governed by the separate policy in FAR 15.403-4(a)(1)(iii). Contractors should be prepared for sealed bid procedures when the government uses that method.
Practical Implications
If the Part 6 conditions for sealed bidding are present, the contracting officer should not treat sealed bidding as a discretionary choice; using the wrong method can create a procurement compliance problem.
For classified work, security requirements may limit or prevent sealed bidding even where the acquisition would otherwise fit the sealed bidding framework, so security review must happen early.
This section is a cross-reference as much as a rule: it sends users to FAR 6.401(a) for the trigger to use sealed bidding and to FAR 15.403-4(a)(1)(iii) for modification pricing policy.
A common pitfall is assuming that because a contract is sealed bid, all later pricing issues are governed by Part 14; this section makes clear that modification pricing is addressed in Part 15.
Contracting teams should document the basis for using or not using sealed bidding, especially in classified acquisitions, to show compliance with both competition rules and security constraints.
Official Regulatory Text
(a) Sealed bidding shall be used whenever the conditions in 6.401 (a) are met. This requirement applies to any proposed contract action under part 6 . (b) Sealed bidding may be used for classified acquisitions if its use does not violate agency security requirements. (c) The policy for pricing modifications of sealed bid contract appears in 15.403-4 (a)(1)(iii).