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from the terms and conditions of the on the part of the Government in its invitation.

transmittal to the office designated in (29 FR 10141, July 24, 1961, as amended at

the invitation for bids for the receipt 42 FR 33737, July 1, 1977)

of bids, as provided for bids submitted

by mail (see § 1-2.303-3). § 1-2.302 Time of bid submission.

(38 FR 26914, Sept. 27, 1973) Bids shall be submitted so as to be received in the office designated in the

§ 1-2.303-5 Hand-carried bids. invitation for bids not later than the A late hand-carried bid, or any other exact time set for opening of bids. late bid not submitted by mail or teleWhere telegraphic bids are authorized, gram, shall not be considered for a telegraphic bid received in such award. office by telephone from the receiving telegraph office not later than the § 1-2.303-6 Notification to late bidders. time set for opening of bids shall be

(a) When a late bid is received and it considered if such bid is confirmed by is clear from available information the telegraph company by sending a

that under § 1-2.303-2 such late bid copy of the the telegram which

cannot be considered for award, the formed the basis for the telephone

contracting officer, or his authorized call.

representative, shall promptly notify

the bidder that it was received late § 1-2.303 Late bids.

and will not be considered (see also § 1-2.303-1 General.

§ 1-2.303-7). However, when a late bid

is transmitted by registered or certiBids received at the office designat

fied mail and is received before award ed in the invitation for bids after the

but it is not clear from available inforexact time set for opening of bids are mation whether it can be considered, late bids. Late bids shall not be consid

the bidder shall be promptly notified ered for award except as authorized in

substantially as follows: this § 1-2.303.

Your bid in response to Invitation for Bids § 1-2.303-2 Consideration for award. Number ---, dated --- -, was received

after the time for opening specified in the A late bid shall be considered for

Invitation. Accordingly, your bid will not be award only if it is received before opened or considered for award unless there award and, (a) if submitted by mail, is received from you by ----(date) the the circumstances outlined in 81 original post office receipt for registered or 2.303-3 are applicable, or (b) if submit certified mail showing a date of mailing not ted by telegram (where authorized)

later than the fifth calendar day prior to the circumstances set forth in 81

the date specified for opening (e.g., a bid

submitted in response to a solicitation re2.303-4 are applicable.

quiring receipt of bids by the 20th of the (33 FR 20041, Dec. 31, 1968)

month must have been mailed by the 15th

or earlier). § 1-2.303-3 Mailed bids.

(b) When a late telegraphic bid is reA late bid, modification of bid, or ceived and it is clear from available inwithdrawal of bid shall be considered formation that under § 1-2.303-2 such only if the circumstances set forth in late bid cannot be considered, the conthe provision in § 1-2.201(a)(31) are ap tracting officer, or his authorized repplicable.

resentative, shall promptly notify the

bidder that his bid was received late (38 FR 26914, Sept. 27, 1973)

and will not be considered (see also § 1-2.303-4 Telegraphic bids.

§ 1-2.303-7). A late telegraphic bid received (38 FR 26914, Sept. 27, 1973) before award shall not be considered for award, regardless of the cause of 81

§ 1-2.303-7 Disposition of late bids. the late receipt, including delays A late bid which is not for consideracaused by the telegraph company, tion shall be held unopened until after except for delays due to mishandling award and then returned to the bidder (unless other disposition is requested prior to the exact time set for opening or agreed to by the bidder). However, of bids. an unidentified late bid may be opened solely for purposes of identifi- § 1-2.305 Late modifications and withcation as provided in § 1-2.401.

drawals.

Modifications of bids and requests § 1-2.303-8 Records.

for withdrawal of bids which are reThe following shall, if available, be

ceived in the office designated in the included in the contracting office files

invitation for bids after the exact time with respect to each late bid:

set for opening are “late modifica(a) A statement of the date and hour

tions" and "late withdrawals,” respecof mailing or filing.

tively. A late modification or late with

drawal shall be subject to the rules (b) A statement of the date and hour of receipt.

and procedures applicable to late bids

set forth in § 1-2.303. However, a late (c) The determination of whether or

modification of the otherwise successnot the late bid was considered for

ful bid shall be opened at any time it award, with supporting facts.

is received; and if in the judgment of (d) A statement of the disposition of

the contracting officer it makes the the late bid.

terms of the bid more favorable to the (e) The envelope, or other covering,

Government, it shall be considered. In if the late bid was considered for the case of late modifications and late award.

withdrawals, the notice set forth in

§ 1-2.303-6 shall be appropriately $ 1-2.304 Modification or withdrawal of

modified. bids. (a) Bids may be modified or with Subpart 1-2.4-Opening of Bids and drawn by written or telegraphic notice

Award of Contract received in the office designated in the invitation for bids not later than the 81-2.401 Receipt and safeguarding of exact time set for opening of bids. A bids. telegraphic modification or withdraw

(a) All bids (including modifications) al of a bid received in such office by

received prior to the time set for opentelephone from the receiving tele

ing shall be kept unopened, except as graph office not later than the time

stated in § 1-2.401(b), and secure in a set for opening of bids shall be consid

locked bid box or other locked receptaered if such message is confirmed by

cle. Prior to bid opening, information the telegraph company by sending a

concerning the identity and number of copy of the written telegram which

bids received shall be made available formed the basis for the telephone

only to Government employees who call. Modifications received by tele

have a proper need for such informagram (including a record of those tele

tion. When bid samples are submitted, phoned by the telegraph company)

they shall be handled with sufficient shall be sealed in an envelope by a

care to prevent disclosure of characproper official who shall write thereon

teristics before bid opening. the date and time of receipt and by (b) Unidentified bids may be opened whom, the invitation for bid number,

solely for the purpose of identification and his signature. No information con and then only by an authorized offitained therein shall be disclosed cial. If a sealed bid is opened by misbefore the time set for bid opening. take, the telegram which formed the See § 1-2.401 with respect to the re basis for the person who opens the bid ceipt and safeguarding of modifica will immediately write his signature tions.

and position title on the envelope and (b) A bid may be withdrawn in deliver it to the proper official. This person by a bidder or his authorized official shall immediately write on the representative, provided his identity is envelope an explanation of the openmade known and he signs a receipt for ing, the date and time opened, the inthe bid, but only if the withdrawal is vitation for bid number, and his signa

ture. Bids opened by mistake or for merous to warrant the recording of all identification purposes shall be re- bids completely, an entry shall be sealed in the envelope and no informa made of the invitation number, opention contained therein shall be dis ing date, general description of the closed prior to the public bid opening. procurement items, and the total price

bid where definite quantities are in§ 1-2.402 Opening of bids.

volved. The record or abstract shall be (a) The official designated as the bid

completed as soon as practicable after opening officer shall decide when the

the bids have been opened and read. time set for bid opening has arrived

The bid opening officer shall certify

the accuracy of the record or abstract. and shall so declare to those present.

If the invitation for bids is canceled All bids received prior to the time set for opening shall then be publicly

before the time set for bid openings,

this fact shall be recorded, together opened and, when practicable, read aloud to the persons present, and be

with a statement of the number of recorded. If it is impracticable to read

concerns invited to bid and the

number of bids received. the entire bid, as where many items are involved, the total amount bid

§ 1-2.404 Rejection of bids. shall be read, if feasible. The original of each bid shall be carefully safe. § 1-2.404-1 Cancellation of invitation guarded, particularly until the ab

after opening. stract of bids required by § 1-2.403 has

(a) Preservation of the integrity of been made and its accuracy verified.

the competitive bid system dictates (b) Performance of the procedure in

that, after bids have been opened, $ 1-2.402(a) may be delegated to an as

award must be made to that responsi. sistant, but the bid opening officer re

ble bidder who submitted the lowest mains fully responsible for the actions

responsive bid, unless there is a comof such assistant.

pelling reason to reject all bids and (c) Examination of bids by interest.

cancel the invitation. Every effort ed persons shall be permitted if it does shall be made to anticipate changes in not interfere unduly with the conduct

a requirement prior to the date of of Government business. However,

opening and to notify all prospective original bids shall not be allowed to

bidders of any resulting modification pass out of the hands of a Govern or cancellation, thereby permitting ment official unless duplicate copies of bidders to chan

bidders to change their bids and presuch bids are not available for public

venting unnecessary exposure of bid inspection. In such cases, the original

prices. As a general rule, after openbids may be examined by the public ing, an invitation for bids should not only under the immediate supervision be canceled and readvertised due of a Government official and under

solely to increased requirements for conditions which preclude possibility the items being procured. Award of a substitution, addition, deletion, or

should be made on the initial invitaalteration in the bids. However, see tion for bids and the additional quan§ 1-2.404-4 with respect to public dis

tity should be treated as a new pro

titv should be treated as a no closure of descriptive literature sub

curement. mitted by a bidder on a restrictive

(b) Invitations for bids may be can. basis.

celed after opening but prior to award,

and all bids rejected, where such § 1-2.403 Recording of bids.

action is consistent with § 1-2.404-1(a) The invitation number, bid opening and the contracting officer determines date, general description of the pro in writing that cancellation is in the curement item, names of bidders, best interest of the Government for prices bid, and any other information reasons such as the following: required for bid evaluation, shall be (1) Inadequate, ambiguous, or otherentered in an abstract or record which, wise deficient specifications were cited except in the case of a classified pro- in the invitation for bids. curement, shall be available for public (2) The supplies or services are no inspection. When the items are too nu- longer required.

(3) The invitation for bids did not provide for consideration of all factors of cost to the Government, such as cost of transporting Government-furnished property to bidders' plants.

(4) Bids received indicate that the needs of the Government can be satisfied by a less expensive article differing from that on which the bids were invited.

(5) All otherwise acceptable bids received are at unreasonable prices. (See $ 1-3.214 concerning authority to negotiate in such situations.)

(6) The bids were not independently arrived at in open competition, were collusive, or were submitted in bad faith. (See § 1-3.214 concerning authority to negotiate in such situations and Subpart 1-1.9 for reports to be made to the Department of Justice.)

(7) The bids received did not provide competition which was adequate to insure reasonable prices.

(c) Should administrative difficulties be encountered after bid opening which may delay award beyond bid. ders' acceptance periods, the several lowest bidders should be requested, before expiration of their bids, to extend the bid acceptance period (with consent of sureties, if any) in order to avoid the need for readvertisement.

(3) States a price but qualifies such price as being subject to "price in effect at time of delivery."

(4) Where not authorized by the invitation, conditions or qualifies his bid by stipulating that the bid is to be considered only if, prior to date of award, bidder receives (or does not receive) award under a separate procurement.

(5) Limits rights of Government under any contract clause. However, a low bidder may be requested to delete objectionable conditions from his bid if these conditions do not go to the substance, as distinguished from the form of the bid. A condition goes to the substance of a bid where it affects price, quantity, quality, or delivery of the items offered.

(c) Any bid may be rejected if the contracting officer determines in writing that it is unreasonable as to price.

(d) Bids received from any person or concern debarred or ineligible shall be rejected if the period of debarment or ineligibility has not expired (see Subpart 1-1.6).

(e) Low bids received from firms determined to be not responsible, pursuant to Subpart 1-1.12, shall be rejected (but if a bidder is a small business concern, see Subpart 1-1.7 with respect to certificates of competency).

(f) Where a bid guarantee is required and a bidder fails to furnish it in accordance with the requirements of the invitation for bids, the old shall be rejected except as otherwise provided in § 1-10.103-4.

(g) The originals of all rejected bids. and any written findings with respect to such rejections, shall be preserved with the papers relating to the procurement.

(h) After submitting a bid. if a bidder transfers all of his assets or that part of his assets related to the bid during the period between the bid opening and the award, the transferee may not take over the bid. Accordingly, the contracting officer shall reject the bid (see Comptroller General decision B-171959, September 3, 1971). (29 FR 10141, July 24, 1964, as amended at 32 FR 2626, Feb. 8, 1967; 36 FR 17421, Aug. 31, 1971; 38 FR 32808, Nov. 28, 1973)

$ 1-2.404-2 Rejection of individual bids.

(a) Any bid which fails to conform to the essential requirements of the invitation for bids, such as specifications, delivery schedule, or permissible alternates thereto, shall be rejected as nonresponsive.

(b) Ordinarily, a bid shall be rejected where the bidder imposes conditions which would modify requirements of the invitation for bids or limit his lia. bility to the Government so as to give him an advantage over other bidders. For example, bids shall be rejected in which the bidder:

(1) Attempts to protect himself against future changes in conditions such as increased costs, if total price to the Government cannot be determined for bid evaluation.

(2) Fails to state a price and, in lieu thereof, states that price shall be "price in effect at time of delivery."

$ 1-2.404-3 Notice to bidders of rejection is immaterial and inconsequential of all bids.

when its significance as to price, quanWhen it is determined to reject all

tity, quality, or delivery is trivial or

negligible when contrasted with the bids, the contracting officer shall

total cost or scope of the supplies or notify each bidder that all bids have

services being procured. The contractbeen rejected, stating the reason for

ing officer shall either give the bidder such action.

an opportunity to cure any deficiency § 1-2.404-4 Restrictions on disclosure of

resulting from a minor informality or descriptive literature.

irregularity in a bid or waive such defi

ciency, whichever is to the advantage (a) When a bid is accompanied by

of the Government. Examples of descriptive literature (as defined in

minor informalities or irregularities § 1-2.202-5(a)), and the bidder imposes

include: a restriction that such literature may

(a) Failure of bidder to return the not be publicly disclosed, such restric

number of copies of signed bids retion renders the bid nonresponsive if it

quired by the invitation for bids. prohibits the disclosure of sufficient

(b) Failure to furnish required inforinformation to permit competing bid

mation concerning the number of bidders to know the essential nature and

ders' employees. type of the products offered or those

(c) Failure of bidder to sign its bid, elements of the bid which relate to

but only if (1) the unsigned bid is acquantity, price and delivery terms.

companied by other material indicatThe provisions of this paragraph (a)

ing the bidder's intention to be bound do not apply to unsolicited descriptive

by the unsigned bid document, such as literature submitted by a bidder if

the submission of a bid guarantee, or a such literature does not qualify the

letter signed by the bidder with the bid (see § 1-2.202-5(f)).

bid referring to and clearly identifying (b) Descriptive literature restricted

the bid itself; or (2) the firm submitby a bidder against public disclosure

ting a bid has formally adopted or aushall not be disclosed in a manner

thorized, before the date set for openwhich would contravene the restric

ing of bids, the execution of docution without permission of the bidder.

ments by typewritten, printed, or § 1-2.404-5 All or none qualifications.

stamped signature and submits evi

dence of such authorization and the Unless the invitation for bids so pro

bid carries such a signature. vides a bid is not rendered nonrespon (d) Failure of a bidder to acknowlsive by the fact that the bidder speci.

edge receipt of an amendment to an fies that award will be accepted only invitation for bids, but only if: on all, or a specified group, of the (1) The bid received clearly indicates items included in the invitation for that the bidder received the amendbids. However, bidders shall not be

ment, such as where the amendment permitted to withdraw or modify "all

added another item to the invitation or none" qualifications after bid open for bids and the bidder submitted a ing since such qualifications are sub bid thereon; or stantive and affect the rights of other (2) The amendment involves only a bidders.

matter of form or is one which has

either no effect or merely a trivial or § 1-2.405 Minor informalities or irregular.

negligible effect on price, quantity, ities in bids.

quality, or delivery of the item bid A minor informality or irregularity

upon. is one which is merely a matter of form and not of substance or pertains § 1-2.406 Mistakes in bids. to some immaterial or inconsequential defect or variation of a bid from the

§ 1-2.406-1 General. exact requirement of the invitation for After the opening of bids, contractbids, the correction or waiver of which ing officers shall examine all bids for would not be prejudicial to other bid. mistakes. In cases of apparent misders. The defect or variation in the bid takes and in cases where the contract

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