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should be allowed a minimum of three 824-2.402 Opening cf bids. (3) working days in addition to a time

The bid opening will be conducted allowance for transmitting the notice to, and receipt of the evidence by, the

by the Contracting Officer or his duly Contracting Officer. The bidder shall

authorized representative designated be notified immediately in writing if

as the bid opening officer. At the bid his bid cannot be considered for award

opening, the relative merits of any

bids shall not be discussed by the because of lateness.

person opening the bids, or the Con8 24-2.303-7 Disposition of late bids.

tracting Officer, with the bidders,

their representatives, casual observers, A late bid which is not for considera

or Department personnel. No statetion shall be held unopened until after

ment shall be made by the person award and then returned to the bidder

opening the bid or the Contracting Of(unless other disposition is requested

ficer at a bid opening bearing on the or agreed to by the bidder). The

award, the possibility of a readvertisereturn of a late bid which cannot be

ment, mistakes in bids, the responsiveconsidered for award shall be accom

ness or responsibility of any bidder, panied by a statement from the Con

etc. Oral instructions shall not be tracting Officer that the bid was not

given to bidders at any time during considered because of its late receipt.

the opening. Protests of bidders and If the late bid had to be opened for

inquiries regarding the award of the identification purposes or was opened

contract shall be referred to the Conby mistake, this fact shall be included

tracting Officer after the completion in the statement from the Contracting

of the bid opening. Bidders are cauOfficer accompanying the returned

tioned that information obtained at bid. In all cases where a late bid is not

bid opening from other than the Conconsidered and returned to the bidder,

tracting Officer may only be relied the file shall be documented with all

upon by the bidder at the bidder's own information relating to the determina

risk. After all bids have been opened, tion of late receipt which shall include

read aloud and recorded, the bid opena copy of the late bid envelope.

ing officer shall state that opening of

bids has been completed. Subpart 24-2.4—Opening of Bids and Award of Contract

$ 24–2.402-50 Marking of bids.

Under no circumstances will any in$ 24-2.401 Receipt and safeguarding of dividual make any marks or notations bids.

on the bid or its accompanying docuEnvelopes, or other outer covering, ments. Erasures and any other containing identified bids, shall be changes to the bid must be initialed by stamped to show the Office of receipt. the individual executing the bid docutime and date. The bids shall immedi. ment. If such erasures or changes are ately be turned over to the Contract not initialed, it shall be handled in acing Officer who will be responsible for cordance with 41 CFR 1–2.405. If their safekeeping until the official through error or for some other opening. Each procuring activity shall reason marks are made on a bid or its be responsible for establishing proce- accompanying documents by a Gov. dures for the safeguarding of bids. Un ernment employee, the markings identified bids and bids that are should not be erased or eradicated; inopened by mistake shall be handled in stead, the individual so marking the accordance with 41 CFR 1-2.401(b). bid shall prepare a signed explanation The Contracting Officer shall retain of the marking for insertion in the file in the file a copy of the envelope, for future reference, showing when, wrapper, or other container (bearing how, and why the notations or markthe required documentation) of a bid ings were made. If the marked bid is which was opened by mistake or which accepted, explanation with regard was opened for purpose of identifica thereto should be made on the statetion.

ment of award.

shall be notified promptly of the course of action to be taken. 824-2.406-4. Disclosure of mistakes after

award. Pursuant to 41 CFR 1-2.406-4(d), the Director, Office of Procurement and Contracts is delegated authority to make the determinations under 41 CFR 1-2.406-4. Mistakes in bids discovered after award shall be submitted to the Director, Office of Procurement and Contracts accompanied by the data set forth in 41 CFR 1-2.406-4(f). Each determination made hereunder will be coordinated with the Office of General Counsel prior to notification to bidder.

$ 24-2.402-51 Timing of acceptance and

withdrawal. Bidders may not withdraw their bids after bid opening unless the notice of withdrawal was mailed prior to the time set for bid opening and handled in accordance with 41 CFR 1-2.305. The Contracting Officer's letter accepting the bid, when written acceptance is required, is effective when mailed. Therefore, a binding contract is effected where acceptance has been mailed by the Contracting Officer before the letter from the bidder advising of withdrawal of bid is received. § 24-2.404 Rejection of bids. $ 24-2.404-50 Rejection of bids in multiple

bidding situations. When more than one bid is received from a person or firm, or affiliates thereof, in response to an invitation for bids, such bids shall be considered for award if responsive and otherwise acceptable. If the Contracting Officer determines that these bids would give a bidder an unfair advantage over other bidders or would otherwise be prejudicial to the best interest of the Government, these bids will be rejected. When a tie situation occurs in which the requirement stipulated in 41 CFR 1-2.407-6 has to be applied, only one of the multiple bids shall be considered.

$ 24-2.407 Award.
$24-2.407-1 General.

Pursuant to 41 CFR 1-2.407-1, awards shall be made by mailing or otherwise furnishing to the successful bidder a properly executed award document or notice of award. A notice of award may be approved by the Contracting Officer for administrative reasons when the urgency for the contractor's immediate effort is required, e.g., the reproduction and distribution of the contract document may be delayed.

824-2.406 Mistakes in bids.

$ 24-2.406-3 Other mistakes disclosed

before award. Mistakes in bid discovered prior to award (other than obvious clerical errors) shall be submitted to the following authorities for determinations in accordance with 41 CFR 1-2.406-3:

(a) Director, Office of Procurement and Contracts for all Departmental Programs, except as set forth in Item (b) below.

(b) Director of the appropriate Departmental Area or Insuring Office for the Property Disposition AcquiredProperty Program. Each determination made hereunder will be coordinated with the Office of General Counsel prior to notification to the bidder. The Contracting Officer

$ 24-2.407–7 Statement and certificate of

award. For each contract made by formal advertising, Standard Form 1036, Statement and Certificate of Award, or other appropriate document, shall be prepared and executed by the Contracting Officer and a copy retained in the contract file. $ 24-2.407-8 Protests against award.

The following identifies the responsible agents and sets forth procedural requirements for handling protests, except for protests against awards under National Housing Act contracts. For the purpose of definition, as used in this section “working days" means the working days of the Agencies of the Federal Government, excluding Saturdays, Sundays and Federal holidays, as specified in 5 U.S.C. 6103.

(a) Protest before award-(1) Resolution by procuring office. Interested

parties are urged to seek resolution of dates established in paragraph (a)(1) their complaints initially with the pro- of this section. In other cases, protests curing activity. The Contracting Offi- shall be filed to be received in the Decer shall act on any protest filed with partment of HUD or GAO not later the procuring activity (see 41 CFR 1 than five (5) working days after the 2.407-8(a)) unless it is known that a basis for protest is known or should protest has been filed concurrently have been known, whichever is earlier. with the General Accounting Office Where such protest has been filed ini. (GAO). Where a written protest is tially with the HUD's procuring activi. filed directly with the procuring activi. ty any subsequent protest to the GAO ty, full consideration shall be given to must be delivered to the GAO within the protest with the protestant noti- five (5) working days after notification fied in writing of the final decision on of adverse action by HUD's procuring the protest within thirty (30) working activity. GAO will consider the protest days from the date of receipt by the only if the initial protest was timely Agency except where GAO views are filed with the procuring activity. required, in which case the time for (ii) Any additional statements by the rendering a decision shall be ten (10) protester in support of the protest to working days from receipt of GAO the GAO shall be mailed or otherwise views: Where the Contracting Officer furnished to the GAO, and two (2) makes a determination to award a con copies sent to the procuring activity, tract notwithstanding a protest as au- no later than five (5) working days thorized by 41 CFR 1-2.407-8(b)(4), after filing of the initial protest. the Head of the Procuring Activity (4) Notice of protest and submission shall approve such a determination of report. (i) Upon being advised by prior to award. The appropriate offi- GAO of the receipt of a protest, the cial mentioned above shall notify the Office of General Counsel will inform Office of General Counsel of intent to the procuring activity immediately. make award. Pursuant to 41 CFR 1- The Contracting Officer shall prompt2.407-8(b)(3), the Office of General ly notify in writing the contractor or Counsel shall notify the GAO of such all bidders or offerors who, in the proposed action. Parties interested in opinion of the Contracting Officer, protesting directly to GAO, shall do so appear to have a reasonable prospect in accordance with the General AC of receiving an award if the protest is counting Office Regulations 4 CFR denied. Upon receipt by the Depart. Part 20.

ment of a written request for a formal (2) Responsibility. The Office of report from the GAO relating to a General Counsel has the responsibility protest, the Office of General Counsel for handling matters relating to pro shall make the complete formal tests against award of contracts within report, or a written statement setting the Department of Housing and Urban forth the reasons for any delay and Development and for liaison with the the expected date of submission to GAO. All communications concerning GAO within twenty-five (25) working a protest written or otherwise directed days, unless a different time is stiputo GAO shall be coordinated with the lated by GAO, after receipt of the Office of General Counsel. All written GAO request. Except to the extent communications from the Department that withholding of information is to GAO shall be by the Office of Gen permitted or required by law or regu. eral Counsel. The Contracting Officer lations, copies of the protest and any has the responsibility for furnishing supplemental information later filed the Office of General Counsel with all by the protester may be furnished to information relating to the protest. the parties previously notified of the

(3) Times for filing. The times for protest. These parties shall be advised filing are as follows:

to communicate directly with GAO if (i) Protests based on alleged impro they desire to comment on the protest. prieties in any type of solicitation (ii) The report shall include the docwhich are apparent prior to bid open uments and statements required by 41 ing or the closing date for the receipt CFR 1-2.407-8(a)(2), identify the GAO of proposals shall be filed prior to the file number assigned to the protest

and shall be concurred in by the Con- the Contracting Officer makes a writtracting Officer. If appropriate, the ten determination that (a) the specifireport shall state the urgency of the cations were clear and not unduly reprocurement and the extent to which strictive, (b) adequate competition was à delay in award may result in signifi. solicited and it could have been reacant performance difficulties or addi- sonably assumed that more than one tional expense to the Government. bid would have been submitted, (c) the Where the statement of urgency is not price is reasonable, and (d) the bid is appropriate, the report shall state the otherwise in accordance with the invilength of time an award may be de- tation for bids. Such a determination layed without significant expense or shall be placed in the file. difficulty in performance. The report shall be transmitted by a covering $ 24-2.408 Information to bidders. letter addressed to the individual in On all contracts in excess of $5,000, GAO who signed the request and shall except for the conditions stipulated in state that copies thereof have been 41 CFR 1-2.408(a) (1) and (2), the unsent to the protestant and any other successful bidders shall be given a nonamed parties who have been given tification of rejection by one of the notice of the protest. The external dis- methods set forth in 41 CFR 1tribution shall be shown on the origi- 2.408(b). nal of the letter to GAO. In addition, letters shall be sent to the protestant PART 24-3—PROCUREMENT BY and other interested parties enclosing

NEGOTIATION a copy of the completed report and shall advise recipients that any com

Subpart 24—3.101—Exceptions to Normal ments shall be filed with the Office of

Negotiation Procedures General Counsel, General Accounting Office within ten (10) working days Sec. after receipt with copies to the procur. 24-3.101-50 Noncompetitive procurements. ing activity and Office of General 24-3.101-51 Unsolicited proposals. Counsel, Department of HUD.

Subpart 24-3.103—Dissemination of (iii) If GAO requests additional information, a supplementary report

Procurement information shall be transmitted to GAO within 24-3.103-1 Publicizing procureinent acfive (5) working days after the Depart tions. ment receives the request and shall 24-3.103-2 Release of information during follow the procedures set forth in 24

the solicitation phase. CFR 2.407-8(a)(4).

24-3.103-3 Release of information during

the evaluation phase. (b) Protest after award. Protests ini.

24-3.103-4 Postaward release of procuretially received after contract award are

ment information. subject to the procedure in this 24

24-3.106 Preproposal conferences. CFR 2.407-8 and 41 CFR 1-2.407-8(c).

(c) Responsibility for data. The Subpart 24–3.150— Treatment of Proposal Office of General Counsel shall main

Information tain records relating to all protests re

24-3.150-1 General. ceived. The records shall contain ade

24-3.150-2 Disposition of unsuccessful proquate data to show the number and

posals. nature of formal protests received 24-3.150-3 Use of successful proposals. (whether filed directly with the Department or with GAO), their disposi

Subpart 24-3.4-Type of Contracts tion and the time for resolution. These

24-3.405-3 Cost-sharing contract. records will be reviewed annually in

24-3.408 Letter contract. order to update protest procedures. $24-2.407–50 Award when only one bid is

Subpart 24–3.6—Small Purchases received.

24-3.601 Nonconstruction contracts. When only one bid is received in re

Subpart 24–3.7—Negotiated Overhead Rates sponse to an invitation for bids, such bid may be considered and accepted if 24-3.702 General.


(b) Exclusions. The provisions of 24-3.707 Overhead ceilings.

this § 24-3.101-50 do not apply to: (1)

Procurements of architect-engineer Subpart 24–3.8—Price Negotiation Policy and services; (2) procurement of utility Techniques

services where the services are availa24-3.801-2 Responsibility of contracting of.

ble from only one source; (3) 8(a) proficer.

curements with the Small Business 24-3.802 Preparation for negotiation.

Administration; or (4) purchases from 24-3.805 Selection of offerors for negotia mandatory Federal Supply Schedule tion and award.

contracts which list only one source. 24-3.805-1 Policy.

(c) Justification for noncompetitive 24-3.805-2 Procurements not expected to procurement. The document entitled exceed $250,000.

“Justification for Noncompetitive Pro24-3.805-3 Procurements expected to

curement” shall completely discuss exceed $250,000.

the circumstances which render comSubpart 24–3.51—Protests Against Award

petitive negotiation impractical or not

feasible and identify the exclusive ca24-3.5101 Negotiated procurement pro pabilities which the proposed contractests.

tor possesses and which meet the reAUTHORITY: Sec. 7(d), Housing and Urban quirements of the procurement. Development Act (42 U.S.C. 3535(d))

(1) Factors which shall be considSource: 41 FR 55805, Dec. 22, 1976, unless

ered in preparing the “Justification”

include, but are not limited to, the folotherwise noted.


(i) The unique capability, highly speSubpart 24-3.101—Exceptions to

cialized experience or facilities the Normal Negotiation Procedures

proposed contractor possesses which is

essential to provide the required sup$ 24-3.101-50 Noncompetitive procure

plies or services. ments.

(ii) If time is of the essence, the ex(a) General. All departmental pro- perience, capabilities, or facilities the curement shall be accomplished on a proposed contractor possesses which competitive basis to the maximum would enable him to complete the repractical extent. Procurement without quirement within the time frame competition shall be limited to those while all others would fail. circumstances where only one firm, or- (iii) Whether the proposed contracganization or individual can provide tor is the only one which can fulfill a the required supplies or services requirement that the desired item be within the time required and at a rea- compatible with existing equipment or sonable price. Program offices recom- systems. mending procurement on a noncompe (iv) Whether the proposed contractitive basis shall submit a detailed tor has a substantial investment of summary of the factual circumstances some nature which would have to be supporting sole source procurement to duplicated at excessive Government the Contracting Officer. The Con expense by another source entering tracting Officer shall review the summary in accordance with the criteria (2) The Contracting Officer shall outlined in paragraph (c) of this sec make the final determination as to the tion. If, in the judgment of the Con- adequacy of the proposed sole source tracting Officer, the noncompetitive based upon consideration of all approprocurement is adequately supported, priate factors including any or all of he shall prepare a document entitled those listed in $ 24-3.101-50(c)(1). “Justification for Noncompetitive Procurement.” The document shall

$ 24-3.101-51 Unsolicited proposals. comply in all respects with the re (a) Definition. An unsolicited proquirements of paragraph (c) of the posal is a written offer to perform section and be signed and inserted in work which is made to the Depart. the procurement file by the Contract. ment by a prospective contractor withing Officer.

out prior formal or informal solicita

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