FAR 14.103-2—Limitations.
Plain-English Summary
FAR 14.103-2 sets the basic legal and procedural limits on when an agency may make an award under sealed bidding. It ties together four separate prerequisites: proper solicitation of bids under FAR subpart 14.2, proper submission and handling of bids under FAR subpart 14.3, compliance with the contracting authority and competition requirements in FAR 1.602-1(b) and FAR part 6, and award to the responsible bidder whose bid is responsive and most advantageous to the Government based only on price and any price-related factors stated in the invitation for bids. In practice, this section is a gatekeeper rule: if any one of these conditions is missing, award under sealed bidding is not proper. It reinforces that sealed bidding is a highly structured method of contracting, with limited discretion at award and a strong emphasis on fairness, transparency, and strict adherence to the invitation for bids. For contractors, it means the bid must be timely, compliant, and complete; for contracting officers, it means award decisions must be based strictly on the IFB and the bidder’s responsibility, not on unstated preferences or post-bid negotiations.
Key Rules
Proper solicitation required
Award may be made only if bids were solicited in accordance with FAR subpart 14.2. This means the agency must have used the correct sealed bidding procedures to issue the invitation for bids and give potential bidders a fair opportunity to compete.
Proper bid submission required
Award is allowed only if bids were submitted in accordance with FAR subpart 14.3. The agency must receive, handle, and open bids under the sealed bidding rules, including timeliness and bid opening requirements.
Competition and authority rules met
The requirements of FAR 1.602-1(b) and FAR part 6 must be satisfied. In practice, this means the contracting officer must have proper authority and the acquisition must comply with full and open competition or a valid exception to competition.
Award to responsible bidder
The award must go to a responsible bidder under FAR part 9. Responsibility covers the bidder’s ability to perform, including integrity, capacity, and compliance with applicable standards.
Bid must be responsive
The bid must be responsive to the IFB, meaning it must conform to all material terms, conditions, and specifications. A nonresponsive bid cannot be accepted, even if it offers a lower price.
Evaluation limited to stated factors
Award must be made to the bidder whose bid is most advantageous to the Government considering only price and the price-related factors stated in the IFB. The agency may not use unstated criteria or negotiate changes after bid opening.
Responsibilities
Contracting Officer
Ensure the acquisition is conducted under the correct sealed bidding procedures, verify that solicitation and bid submission requirements were followed, confirm compliance with FAR 1.602-1(b) and FAR part 6, determine bidder responsibility, and make award only to the responsive, responsible bidder offering the most advantageous price-based bid.
Agency/Procuring Activity
Prepare and issue a proper invitation for bids, include all price-related evaluation factors in the IFB, and conduct the procurement in a way that preserves fair competition and compliance with sealed bidding rules.
Bidders/Contractors
Submit bids in the manner and by the deadline required by the IFB and FAR subpart 14.3, ensure the bid is responsive to all material IFB requirements, and be prepared to demonstrate responsibility if the contracting officer reviews it.
Competition Advocate/Acquisition Officials
Support compliance with FAR part 6 competition requirements and ensure the procurement record shows a lawful basis for using sealed bidding and making award under that method.
Practical Implications
This section is a hard stop on award authority: if the solicitation, bid submission, competition, or responsibility requirements are not met, the agency should not award under sealed bidding.
Contractors should focus on strict compliance with the IFB because even a low price will not save a bid that is late, incomplete, or materially nonresponsive.
Contracting officers must avoid using unstated evaluation considerations or post-opening discussions to fix bid defects; sealed bidding is designed to limit discretion after bid opening.
Responsibility and responsiveness are different: a bidder can be responsible but still lose if the bid is nonresponsive, or responsive but ineligible if the bidder is not responsible.
Documentation matters because award decisions under sealed bidding are often reviewed for strict procedural compliance, especially where a protest or bid challenge is possible.
Official Regulatory Text
No awards shall be made as a result of sealed bidding unless- (a) Bids have been solicited as required by subpart 14.2 ; (b) Bids have been submitted as required by subpart 14.3 ; (c) The requirements of 1.602-1 (b) and part 6 have been met; and (d) An award is made to the responsible bidder (see 9.1 ) whose bid is responsive to the terms of the invitation for bids and is most advantageous to the Government, considering only price and the price related factors included in the invitation, as provided in subpart 14.4 .