FAR 14.503—Procedures.

Step one.

FAR 14.503-1 explains how step one of two-step sealed bidding works, from the initial request for technical proposals through evaluation, clarification, notice of unacceptability, late proposals, and what happens if the two-step process must be discontinued. It tells contracting officers what must be included in the request for technical proposals, including the description of supplies or services, the intent to use two-step bidding, proposal content requirements, evaluation criteria, the prohibition on prices in technical proposals, submission deadlines, the effect of acceptable proposals in step two, and whether one or multiple technical proposals may be submitted. It also addresses optional delivery or performance information, protection and handling of proposals, removal of price data, the time allowed for evaluation, the acceptable/reasonably susceptible/unacceptable categories, when the Government may proceed directly to step two, how to request clarifications or additional information, how to notify offerors of unacceptability and provide debriefings, treatment of late technical proposals, and the file documentation and notice required if two-step sealed bidding is discontinued. In practice, this section is designed to keep step one fair, fast, and focused on technical acceptability so that only technically acceptable bids compete on price in step two. It also protects the integrity of the process by preventing price exposure, limiting discussions to the submitting offeror, and requiring clear records when the process changes course.

Step two.

FAR 14.503-2 explains how the second step of two-step sealed bidding works after step one has already screened and accepted technical proposals. This section covers four core subjects: who may receive the invitation for bids, what must be included in the IFB, how the IFB must describe the bidder’s obligation to follow both the specifications and the bidder’s own technical proposal, and how the solicitation is handled in public notice systems. It also addresses a separate transparency requirement to list the names of firms with acceptable step-one proposals on the Governmentwide point of entry (GPE) for the benefit of prospective subcontractors. In practice, this section is designed to preserve the efficiency of sealed bidding while ensuring that only technically acceptable sources compete in step two and that the government can hold bidders to the technical commitments they made in step one. It matters because it limits competition to qualified firms, prevents inconsistent public posting of the step-two IFB, and creates a subcontracting visibility mechanism for firms that may want to team or subcontract.