Page images

of bidders. The term "invitation for bids" means the complete assembly of related documents, whether attached or incorporated by reference, provided prospective bidders for the purpose of bidding;

(b) Publicizing the invitation for bids, through distribution to prospective bidders, posting in public places, and such other means as may be appropriate, in sufficient time to enable prospective bidders to prepare and submit bids before the time set for public opening;

(c) Submission of bids by prospective contractors; and

(d) Awarding the contract, after bids are publicly opened, to that responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the Government, price and other factors considered (or rejecting all bids).

[blocks in formation]

§ 18-2.102-1 General.

(a) Chapter 137 of title 10 of the United States Code (see 10 U.S.C. 2304 (a)), which is applicable to procurements by NASA, provides that purchases of and contracts for supplies or services shall be made by formal advertising in all cases in which the use of such method is feasible and practicable under the existing conditions and strict circumstances. It further provides that, if the use of formal advertising is not feasible and practicable, negotiation of contracts is authorized under certain circumstances enumerated therein. The circumstances are set forth in Subpart 18-3.2, of this chapter. In accordance with this requirement, procurements shall generally be made by soliciting bids from all qualified sources of supplies or services deemed necessary by the contracting officer to assure full and free competition consistent with the procurement of the required supplies or services. Current lists of bidders shall be maintained in accordance with § 18-2.205.

(b) Chapter 137 of title 10 of the United States Code (10 U.S.C. 2306(f)` provides that a contractor or subcontractor shall be required to submit cost or pricing data for certain contract modifications, and shall be required to certify that, to the best of his knowledge and belief, the cost or pricing data he submitted was accurate, complete, and current. To insure compliance with this requirement, contracting officers shall follow the instructions set forth in

§ 18-3.807-3 before agreeing to a price adjustment of a formally advertised contract.

§ 18-2.102-2

Classified procurements.

Formal advertising shall be used for classified procurements if, after due consideration of security requirements, it is concluded that such requirements will not be violated.

§ 18-2.103 General requirements for formally advertised contracts.

No contract shall be made as a result of formal advertising unless:

(a) Bids have been solicited as required by Subpart 18-2.2;

(b) Bids have been submitted as required by Subpart 18-2.3;

(c) Determination has been made as to the responsible bidder whose bid is responsive to the invitation for bids and is most advantageous to the Government, price and other factors considered, and award is made as prescribed in Subpart 18-2.4;

(d) Such clearances and approvals as are required by this chapter have been obtained.

[blocks in formation]

§ 18-2.104-3 Fixed-price contracts with escalation.

Escalation clauses are not normally desirable, but in appropriate cases clauses providing for upward and downward revision of prices may be used, in accordance with § 18-3.404-3, in order to protect the interest of both the Government and contractor. In addition, where the contracting officer, on the basis of his knowledge of the market or previous advertisements for like items, expects that a requirement for firm fixed-price bids will unnecessarily restrict competition or unreasonably increase bid prices, invitation for bids may include an approved escalation clause. Any escalation clause shall provide an escalation ceiling iden

[blocks in formation]

See § 18-1.309.

§ 18-2.150

Procurement request.

A procurement request (NASA Form 404 or similar form) will be prepared and processed in accordance with the provisions of § 18-1.356.

Subpart 18-2.2—Solicitation of Bids § 18–2.201 Preparation of invitation for bids.

Forms used in inviting bids are prescribed in Subparts 18-16.1 and 18-16.4. Invitation for bids shall contain the applicable information described in §§ 182.201-1 and 18-2.201-2 of this section, and any other information required for a particular procurement. Pen and ink entries, deletions, or alterations shall not be made in an invitation for bids after it has been prepared for distribution. If a change is necessary after reproduction of the invitation for bids, the Standard Form 30 (Amendment of Solicitation/ Modification of Contract) shall be used (see §§ 18-16.101 and 18-16.103). § 18-2.201-1


Supply and service con

(a) Supply and service contracts, including construction. For supply and service contracts, including construction, invitation for bids shall contain the following information if applicable to the procurement involved.

(1) Invitation number.

(2) Name and address of issuing installation.

(3) Date of issuance.

(4) Date, hour, and place of opening. (Prevailing local time shall be used. See § 18-2.202-1 concerning bidding time.) The exact location of the bid depository, including the room and building numbers, and a statement that hand-carried bids must be deposited therein.

(5) Number of pages.

(6) Requisition or other purchase authority and appropriation and accounting data.

(7) A description of supplies or services to be furnished under each item, in sufficient detail to permit full and free competition. Reference to specifications shall include identification of all amendments or revisions thereof, applicable to the procurement and dates of both the specifications and the revisions (see § 181.1201(a)). Such description shall comply with Subpart 18-1.12, relating to specifications.

(8) The time of delivery or performance (see § 18-1.305).

(9) Permission, if any, to submit telegraphic bids (see § 18-2.202-2).

(10) Permission, if any, to submit alternate bids, including alternate materials or design and the basis upon which award will be made in such case.

(11) The "Patent Royalties" clause set forth in § 18-9.102—2(f) (1).

(12) Bid guarantee, performance bond, and payment bond requirements, if any (see Subpart 18-10.1, and § 18-16.805). If a bid bond or other form of bid guarantee is required, the solicitation shall include the provisions required by § 1810.102-4.

(13) Any offer by the Government to provide Government production and research property for the performance of the contract, and any special provisions relating thereto (see Subpart 18-13.3).

(14) Description of the procedures to be followed in obtaining permission to use Government production and research property and in eliminating competitive advantage from the rent-free use thereof (see Subparts 18-13.4 and 18-13.5).

(15) When considered necessary by the contracting officer, a requirement that all bids must allow a period for acceptance by the Government of not less than a minimum period stipulated in the invitation for bids, and that bids offering less than the minimum stipulated acceptance period will be rejected. The minimum period so stipulated should be no more than reasonably required for evaluation of bids and other preaward processing. To accomplish the foregoing, a paragraph substantially as follows may be included in the schedule or other appropriate place in the Invitation for Bids: BIDS ACCEPTANCE PERIOD (JULY 1965) Bids offering less than days for acceptance by the Government from the date set for opening of bids will be considered nonresponsive and will be rejected.

In construction contracts, a 30-day bid acceptance period is normal, but may be

less, and in unusual circumstances a period of 60 days may be specified.

(16) In unusual cases, where bidders are required to have special technical qualifications due to the complexity of the equipment being purchased or for some other special reason, a statement of such qualifications.

(17) Any authorized special provisions, necessary for the particular procurement, relating to such matters as progress payments, patent licenses, liquidated damages, "Buy American Act," etc.

(18) Any additional contract clauses, provisions, or conditions required by law or this chapter.

(19) Any applicable wage determinations of the Secretary of Labor (in the case of procurements of supplies which also involve the performance of construction, alteration or repair work, see § 1812.402; in the case of service contracts, see Subpart 18-12.11).

(20) A statement of the exact basis upon which bids will be evaluated and award made, to include any Government costs or expenditures (other than bid prices) to be added or deducted, or any provision for escalation as factors for evaluation.

(21) If the schedule contains a price escalation clause, the following provision:

Evaluation of bids subject to escalation. Not withstanding the provisions of the clause entitled "Price Escalation," bids shall be evaluated on the basis of quoted prices without the allowable escalation being added. Bids which provide for a ceiling lower than that stipulated in the clause will also be evaluated on this basis. Bids which provide for escalation that may exceed the maximum escalation stipulated in the clause, or which limit or delete the downward escalation stipulated in the clause shall be rejected as nonresponsive. (July 1968)

(22) Where Standard Form 33 (Solicitation, Offer, and Award) is not used and where not contained elsewhere in the invitation, a provision as follows:


In the event of an inconsistency between provisions of this Invitation for Bids, the inconsistency shall be resolved by giving precedence in the following order: (a) The Schedule; (b) Bidding Instructions, Terms and Conditions of the Invitation for Bids; (c) General Provisions; (d) other provisions of the contract, whether incorporated by reference or otherwise; and (e) the Specifications.

(23) When considered necessary by the contracting officer to prevent prac

tices prejudicial to fair and open competition, such as improper kinds of multiple bidding, a requirement that each bidder submit with his bid an affidavit concerning his affiliation with other concerns. To accomplish the foregoing, a paragraph substantially as follows may be included in the Schedule or other appropriate place in the invitation for bids:


(a) Business concerns are affiliates of each other when either directly or indirectly (1) one concern controls or has the power to control the other, or (ii) a third party controls or has the power to control both.

(b) Each bidder shall submit with his bid an affidavit containing information as follows:

(i) Whether the bidder has any affiliates; (ii) The names and addresses of all affiliates of the bidder; and

(iii) The names and addresses of all persons and concerns exercising control or ownership of the bidder and any or all of his affiliates, and whether as common officers, directors, stockholders holding controlling interest, or otherwise.

Failure to furnish such an affidavit may result in rejection of the bid.

Failure to furnish such an affidavit shall be treated as a minor informality or irregularity (see § 18-2.405).

(24) Directions for obtaining copies of any documents, such as plans, drawings, and specifications, which have been incorporated by reference (see § 181.1203).

(25) Where Standard Form 33 (Solicitation, Offer, and Award) is not used, a requirement for inclusion of "county" as part of bidder's address will be inserted.

(26) A provision covering the required source for jeweled bearings (see § 181.315).

(27) [Reserved]

(28) Information regarding bidding material which shall include Instructions to Bidders, the Bid Form, the Contract Form, the General Provisions, any conditions, the specifications and drawings (see § 18-1.1203).

(29) Where Standard Form 33 (Solicitation, Offer, and Award) is not used, a provision covering parent company and employer identification number (see § 18-1.114).

(30) If the contract is to be conditioned on the availability of funds, a clear statement of such condition (see § 18-1.318).

(31) [Reserved]

21) To insure timely distribution of terial Inspection and Receiving Rets (DD Form 250), include distribua instructions in the Schedule or as attachment to the contract (see apadix I).

22) Where liquidated damages are to assessed, insert the clause as preibed by § 18-7.105-5 (see § 18-1.310). 23) In the procurement of supplies ere the award may amount to $1 miln or more, include the provision reing to preaward Equal Opportunity mpliance reviews set forth in § 18802-4(d).

CF.R. 21469, Nov. 10, 1971, as amended at F.R. 25107, Dec. 29, 1971] 18-2.201-2 Construction contracts. In addition to the information required § 18-2.201-1 (a), invitation for bids for onstruction contracts shall contain the ollowing, if applicable to the procureent involved.

(a) Statement of arrangements to be nade for inspecting the site, including esignation of the person or persons, if ny, with whom such arrangements may e made and who will answer questions or urnish information.

(b) Information which may affect perormance of the work such as boring amples, original boring logs, etc.

(c) Information as to what utilities the Government will furnish during contruction, when the contracting officer determines that any utilities are adequate for the needs of both the Government and the contractor. Such information shall specify any special conditions of use to be imposed on the contractor and shall also specify any utilities to be furnished without charge; utilities shall be furnished without charge when the contracting officer determines that this is advantageous to the Government, as when the administrative costs incident to maintaining records and collecting payments will approximate the cost of the utility services to be furnished. Such information may also include any applicable rates to be imposed.

(d) Information concerning prebid conference.

(e) If it is necessary to advertise before receipt of a wage rate determination, a tice that the schedule of minimum rates to be paid under the contract published an amendment to TALON for is,


The right is reserved, as the interest of the Government may require, to revise or amend the specifications or drawings or both prior to the date set for opening bids. Such revisions and amendments, if any, will be announced by an amendment or amendments to this Invitation for Bids. If the revisions and amendments are of a nature which requires material changes in quantities or prices bid or both, the date set for opening bids may be postponed by such number of days as in the opinion of the issuing officer will enable bidders to revise their bids. The amendment will include an announcement of the new date for opening bids.

(g) A provision substantially as follows:


The Government reserves the right to make award of any or all Schedules of any bid, unless the bidder qualifies such bid by specific limitation; also to make award to the bidder whose aggregate bid on any combination of bid Schedules is low. For the purpose of this Invitation for Bids, the word "item" as used in paragraph 10 (c) of Standard Form 22 shall be considered to mean "Schedule."

(h) A reference prominently placed in the invitation to Instruction 7, "Late Bids and Modifications or Withdrawals," of Standard Form 22.

[blocks in formation]

(a) Policy. Consistent with the needs of the Government for obtaining the supplies or services, all invitations for bids shall allow sufficient bidding time (i.e., the period of time between the date of distribution of an invitation for bids and the date set for opening of bids) to permit prospective bidders to prepare and submit bids. This will facilitate competition on reasonable and equal terms. Undue limitation of bidding time tends to restrict competition. Also, when prospective bidders do not have adequate time for computing prices and obtaining needed information on which to base their bids, higher prices to the Government may result from inclusion of unnecessary contingency allowances or the unwillingness of some to submit bids.

(b) Factors to be considered. The urgency of the Government's need for the items or services, the complexity of the invitation, the extent of subcontracting anticted, the use of preinvitation no


lowing in addition to the information required by paragraph (a) of this section, if applicable to the procurement involved.

(1) Discount provisions (see § 182.407-3).

(2) The quantity of supplies or services to be supplied under each item, and any provision for extent of quantity variation.

(3) Any requirement for prior testing and qualification of a product.

(4) Where needed for the purpose of bid evaluation, preaward surveys, or inspection, a requirement that all bidders state the place (including the street address) from which the supplies will be furnished or where the services will be performed. Where it is reasonably anticipated that producing facilities will be used in the performance of the contracts, or where the Government requires the information, bidders will be required to state (i) the full address of principal producing facilities (if designation of such address is not feasible, a full explanation will be required), and (ii) names and addresses of owner and operator if other than bidder.

(5) Place and method of delivery (see Subpart 18-1.13 and § 18–2.202-3).

(6) Preservation, packaging, packing, and marking requirements, if any (see § 18-1.1204).

(7) Place, method, and conditions of inspection.

(8) If no award will be made for less than the full quantities advertised a statement to that effect.

(9) If award is to be made by specified groups of items or in the aggregate, a statement to that effect.

(10) If the contract is to include option provisions, a clear statement of such provisions (see Subpart 18-1.15 and § 18-12.1106–2).

(11) Any applicable requirements for samples or descriptive literature (see §§ 18-2.202-4 and 18-2.202-5).

(12) When minimum size of shipment requirements are appropriate, a provision substantially as set forth in § 182.202-3 (b) (2).

(13) When the shipping weights (and dimensions if applicable) of an item are a factor in determining transportation costs for bid evaluation, a provision substantially as set forth in § 18-2.2023(b) (3).

(14) If the procurement includes the furnishing of electrosensitive initiating devices (squibs) or any other item or

component designated in the procurement request as a potentially hazardous item, the requirements set forth in § 18-1.351.

(15) The number of copies of sellers' invoices desired, including original, if more or less than four.

(16) Any requirement for preproduction samples or tests, including a statement that the Government reserves the right to waive the requirement as to those bidders offering a product which has been previously procured or tested by the Government, and a statement that bidders offering such products, who wish to rely on such prior procurement or tests, must furnish with the bid information from which it may be clearly established that prior Government approval is presently appropriate for the pending procurement.

(17) In accordance with § 18-1.1208, a provision concerning the use of new material.

(18) [Reserved]

(19) When the contracting officer determines that it is necessary to consider the advantages or disadvantages to the Government that might result from making more than one award (multiple awards) (see § 18-2.407-5(c)), a provision substantially as follows:


In addition to other factors, bids will be evaluated on the basis of advantages or disadvantages to the Government that might result from making more than one award (multiple awards). For the purpose of making this evaluation, it will be assumed that the sum of $50 would be the administrative cost to the Government for issuing and administering each contract awarded under this invitation, and individual awards will be for the items and combination of items which result in the lowest aggregate price to the Government, including such administrative costs.

(20) If the contract involves performance of services on a Government installation, the following provision.


Bidders are urged and expected to inspect the site where services are to be performed and to satisfy themselves as to all general and local conditions that may affect the cost of performance of the contract, to the extent such information is reasonably obtainable. In no event will a failure to inspect the site constitute grounds for withdrawal of a bid after opening or for a claim after award of the contract.

« PreviousContinue »