FAR 14.103—Policy.

General.

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.

Limitations.

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.