Source: https://www.federalregister.gov/articles/2002/03/20/02-5822/federal-acquisition-regulation-definitions-for-sealed-bid-and-negotiated-procurements
Timestamp: 2015-03-01 11:02:02
Document Index: 370422143

Matched Legal Cases: ['ART 3', 'art 14', 'art 28', 'arts 2', 'arts 2', 'arts 2', 'art 15', 'ART 3', 'ART 15', 'art 24', 'ART 28', 'art.\n11']

Federal Register | Federal Acquisition Regulation; Definitions for Sealed Bid and Negotiated Procurements
67 FR 13054
-13057 (4 pages)
Document Number: 02-5822
Shorter URL: https://federalregister.gov/a/02-5822 Action
The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed to amend the Federal Acquisition Regulation (FAR) to provide consistent definitions for sealed bids and negotiated procurements.
PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTSOF INTEREST
The FAR Secretariat, Room 4035, GS Building, Washington, DC 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Mr. Ralph De Stefano, Procurement Analyst, at (202) 501-1758. Please cite FAC 2001-06, FAR case 2000-403.
The rule clarifies definitions that are used in the FAR for sealed bid and negotiated procurements. The rule—
Moves the definitions of “bid sample” and“descriptive literature” from FAR part 14 to FAR 2.101 because the definitions apply to more than one FAR part;
Adds a new definition for “solicitation” at FAR 2.101; and
Provides definitions for “bid” and “bidder” in FAR part 28 because, as used in that part, the terms address sealed bid and negotiated acquisitions.
We also reviewed every instance where the terms “offeror,” “prospective offeror,” and “potential offeror” are used in the FAR. The rule clarifies terminology used in FAR 15.201(f), 15.609(e), and 35.007(g). Where we mean an entity that is actively seeking a contract, we use the term “prospective offeror.” However, those cites describe processes that are set up to ensure competition. Therefore, any interested party is able to participate, including parties that the Government has not yet identified.Therefore, the rule uses the more general term “potential offeror.”
DoD, GSA, and NASA published a proposed rule in the Federal Register at 65 FR 42852, July 11, 2000. Four respondents submitted comments on the proposed rule. The Councils considered all comments in the development of the final rule. A summary of the substantive comments is provided:
Comment: Under 52.214-20, paragraph (c), change the second sentence to read “The Government will reject the bid when the sample fails” for clarity.
Comment: Under FAR 2.101, the definition of an “offer” does not include a “quotation.” The definition of a “solicitation” includes a “quotation.” Both definitions should be consistent.
Response: Not accepted. The definition of “offer” is not all-inclusive. It does not include “quotations.” A quotation is not an offer and, consequently, cannot be accepted by the Government to form a binding contract. See FAR 13.004.
Comment: The proposed language under FAR 14.202-5(e) should cite FAR 14.202-4(f) in lieu of (g).
This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5U.S.C. 804.
The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration certify that this final rule will not have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because, while we have made changes for clarity and consistency, we have not substantively changed procedures for award and administration of contracts.
The Paperwork Reduction Act does not apply because the changes to the FAR do not impose information collection requirements that require Office of Management and Budget approval under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 2, 3, 14, 15, 28, 35, and 52 Back to Top
Therefore, DoD, GSA, and NASA amend 48 CFR Parts 2, 3, 14, 15, 28, 35, and 52 as set forth below:
1.The authority citation for 48 CFR Parts 2, 3, 14, 15, 28, 35, and 52 continues to read as follows: Authority:
2.Amend section 2.101 by adding, in alphabetical order, the definitions “Bid sample” and “Descriptive literature”; revising the definition “Offer”; and by adding the definition “Solicitation” to read as follows: 2.101 Definitions.
Bid sample means a product sample required to be submitted by an offeror to show characteristics of the offered products that cannot adequately be described by specifications, purchase descriptions, or the solicitation (e.g., balance, facility of use, or pattern).
Descriptive literature means information provided by an offeror, such as cuts, illustrations, drawings, and brochures, that shows a product's characteristics or construction of a product or explains its operation. The term includes only that information needed to evaluate the acceptability of the product and excludes other information for operating or maintaining the product.
Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called “bids” or “sealed bids”; responses to requests for proposals (negotiation) are offers called “proposals”; however, responses to requests for quotations (simplified acquisition) are “quotations”, not offers. For unsolicited proposals, see subpart 15.6.
Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called “invitations for bids.”Solicitations under negotiated procedures are called “requests for proposals.” Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.
PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTSOF INTEREST Back to Top
3.Amend section 3.302 by revising the definition “Line item” to read as follows: 3.302 Definitions.
4.Amend section 14.201-6 by— a. Revising paragraph (a);
b. Removing paragraphs (b)(1) and (b)(2) and redesignating paragraphs (b)(3) and (b)(4) as (b)(1) and(b)(2);
c. Revising the introductory text of paragraph(o)(2) and paragraph (o)(3); and
d. Removing from paragraph (p)(3) “14.202-5(e)(2)” and adding “14.202-5(d)(2)” in its place. The revised text reads as follows:
(o)(1) * * *
14.202-4 [Amended]
5.Amend section 14.202-4 by removing paragraph (a); redesignating paragraphs (b) through (h) as (a) through (g), respectively; and by removing the word “of” from the heading of newly designated paragraph (g). 6.Revise section 14.202-5 to read as follows: 14.202-5 Descriptive literature.
14.404-4 [Amended]
7.Amend section 14.404-4 in the first sentence by removing “14.202-5(a)” and adding “2.101” in its place; and in the last sentence by removing “14.202-5(f)” and adding “14.202-5(e)” in its place. PART 15—CONTRACTING BY NEGOTIATION Back to Top
8.Amend section 15.201 by removing the undesignated paragraph at the end of the section and revising paragraph (f) to read as follows: 15.201 Exchanges with industry before receipt of proposals.
(f) General information about agency mission needs and future requirements may be disclosed at any time. After release of the solicitation, the contracting officer must be the focal point of any exchange with potential offerors. When specific information about a proposed acquisition that would be necessary for the preparation of proposals is disclosed to one or more potential offerors, that information must be made available to the public as soon as practicable, but no later than the next general release of information, in order to avoid creating an unfair competitive advantage. Information provided to a potential offeror in response to its request must not be disclosed if doing so would reveal the potential offeror's confidential business strategy, and is protected under 3.104 or subpart 24.2. When conducting a presolicitation or preproposal conference, materials distributed at the conference should be made available to all potential offerors, upon request.
9.Amend section 15.609 by revising paragraph (e) to read as follows: 15.609 Limited use of data.
PART 28—BONDS AND INSURANCE Back to Top
10.Revise section 28.000 to read as follows: 28.000 Scope of part.
11.Amend section 28.001 by adding, in alphabetical order, the definitions “Bid” and “Bidder” to read as follows: 28.001 Definitions.
12.Amend section 35.007 by revising paragraph (g) to read as follows: 35.007 Solicitations.
13.Remove and reserve section 52.214-1. 52.214-3 [Amended]
14.Amend section 52.214-3 in the prescription by removing “14.201-6(b)(3)” and adding “14.201-6(b)(1)” in its place. 52.214-4 [Amended]
15.Amend section 52.214-4 in the prescription by removing “14.201-6(b)(4)” and adding “14.201-6(b)(2)” in its place. 16.Amend section 52.214-20 by revising the introductory paragraph, date of the provision, and paragraphs (a), (b), and the introductory text of paragraph (c); and by removing from Alternates I and II “14.202-4(f)(1)” and adding “14.202-4(e)(1)” in its place. The revised text reads as follows: 52.214-20 Bid Samples.
Bid Samples (Apr 2002) Back to Top
(a) Bid sample means a product sample required to be submitted by a bidder to show those characteristics of the offered products that cannot adequately be described by specifications, purchase descriptions, or the invitation for bid (e.g., balance, facility of use, or pattern).
17.Revise section 52.214-21 to read as follows: 52.214-21 Descriptive Literature.
Descriptive Literature (Apr 2002) Back to Top
(a) Descriptive literature, as used in this provision, means information furnished by a bidder, such as cuts, illustrations, drawings, and brochures, that shows a product's characteristics or construction or explains its operation. The term includes only that information required to evaluate the acceptability of the product and excludes other information for operating or maintaining the product.
(d) If the bidder fails to submit descriptive literature on time, the Government will reject the bid, except that late descriptive literature sent by mail may be considered under the Late Submissions, Modifications, andWithdrawals of Bids provision of this solicitation.
Prior contract number
Date of prior contract
Contract line item number of product
Name and address of Government activity to which delivery was made
Date of final delivery product supplied
[FR Doc. 02-5822 Filed 3-19-02; 8:45 am]