Convert to an RFP when discussions become necessary.
The preferred method of acquisition in federal contracting, sealed bidding, requires issuing an invitation for bids known as an IFB. When bids received don't meet the criteria for award, buyers may convert the solicitation to a request for proposal -- RFP -- in order to allow the award process to continue. If time allows, the Competition in Contract Act requires federal agencies to use the IFB method when price is the deciding award factor and discussions with bidders are not necessary. A public reading of each bid received typically concludes the IFB process, and the award generally goes to the lowest bidder. In some cases, after opening bids, circumstances may exist that prevent awards based on bids received. In order to salvage the project, completing it as an RFP could prevent the need to redo the entire bid process.
Instructions
1. Review all bids submitted in response to the IFB and determine why an award cannot be made. Prepare written documentation identifying the reason for bid rejections and get approval to utilize negotiation procedures. If bid expiration is nearing, extend the acceptance period until decisions have been finalized.
2. Determine whether the reasons for cancellation permit the project to be continued using RFP procedures without resolicitation. If all bids offered unreasonable prices or possible collusion existed, cancel the IFB by amendment and offer all companies the chance to enter negotiations under an RFP. In the amendment, state the requirements and timelines new offers must meet, make any required specification clarifications and establish the lowest negotiated cost as the award criteria.
3. Utilize the same procedure when only one bidder responds to an IFB. In the absence of competition, include requirements for certified cost and pricing data as part of the amendment. If product prices can't be compared to common market items, request a cost breakdown to determine reasonableness of the offered price.
4. Cancel the IFB and issue a new solicitation if specification changes exist or the IFB didn't include all cost factors. Reissue the solicitation as an RFP if bid responses identified other means of satisfying the requirement but discussions would benefit the award. Establish evaluation criteria for the new RFP and define what offers must provide as part of the proposal.
