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Sealed bidding during government contract procurement

| Sep 8, 2020 | Uncategorized |

Securing contract with the federal government can be lucrative for Los Angeles-based business. However, doing business with the government can be very different than partnering with another private entity. Government agencies are subject to stringent regulations regarding how and with whom they contract. This post will briefly introduce the sealed bidding process but does not offer any legal advice or guidance on any legal subject.

What is the purpose of sealed bidding?

Sealed bidding is one of two ways that businesses can do work for or with the government. Unlike competitive negotiation, which allows for greater interaction and “back and forth” between the contracting parties, sealed bidding is based solely on price. If multiple entities submit responsible bids to do necessary work, the government agency is required to award the contract to the lowest bidder.

Sealed bidding allows all businesses seeking to work with the government an equal chance of getting a contract. It follows rigorous procedures and requires adherence to strict rules.

What makes a sealed bidder a responsible candidate for a contract?

Aside from having the lowest bid on a government contract, a successful sealed bidder must be deemed responsible before it can be given the right to do work under an agreement with the government. Some of the factors that make businesses responsible for the purposes of government contracting include:

  • Financial stability
  • Solid performance record
  • Ability to meet government’s schedule
  • Possession of experience and equipment needed to do the work

Before seeking to secure a government contract it is important that a business understands what makes the process different than doing business with other private companies. The knowledge and guidance of a government contracts attorney can provide a business with necessary information and legal direction to improve its chances of landing lucrative government contract work.