Will someone please provide a reference answering the following question? Must a Federal Construction contract be awarded if total amount of funds available is $405,700 and the lowest responsive, responsible bid is $405,500? My feeling is that it must be awarded since funds are available, but, I cannot find a reference.

By Anonymous on Monday, August 27, 2001 - 12:24 pm:

In part 14 of the FAR under bid cancellation.

By Vern Edwards on Monday, August 27, 2001 - 12:39 pm:

Why do you ask? Are you worried that the bid is too low? If so, then you probably cannot withhold award on that basis alone. If you think that the bid is too low you must determine whether or not the low responsive bidder is financially responsible. If it is, then you will probably have to award the contract unless you have some other reason to withhold the award.

The general rules about cancelling IFBs after bid opening are in FAR 14.401-1.

By Anonymous on Monday, August 27, 2001 - 02:15 pm:

Vern, no I am not worried about the bid being too low, I am worried that after award, if a modification has to be made, there will be no funds to make the modification. This being a construction contract I have not seen many that did not require some modification.

By Vern Edwards on Monday, August 27, 2001 - 02:21 pm:

Anon:

Well, that's a reasonable concern.

You can try cancelling the IFB under the cover of FAR 14.404-1(c)(10). I would consult with legal about the possibility of such a decision being protested and the protest being sustained. You may have to pay bid preparation costs, but they may be small.

Good luck.

By joel hoffman on Monday, August 27, 2001 - 06:17 pm:

Anon, your agency should have developed a Government estimate for the scope of work you advertised (Reference FAR Part 36). If the estimate compares favorably with the low bid, you should have already realized that there wouldn't be much, if any money left for changes and other contigencies. If the low bid considerably exceeds the estimate, you should re-examine the estimate. If still valid, you might conclude that the low bid is unreasonable. The KO must also determine that prices are reasonable before awarding a construction contract.

I'm guessing also that this is a construction contract with a $500,000 statutory ceiling for all project costs. If that is true, you must be extremely cautious not to exceed that ceiling. Good Luck. happy sails! joel

By joel hoffman on Monday, August 27, 2001 - 06:19 pm:

Anon - to clarify - my opinion assumes that you are a Federal Agency, subject to FAR...
happy sails! joel