What is the purpose of Two Step Sealed Bidding?

The purpose of Two Step Sealed Bidding is primarily to obtain the benefits of sealed bidding in situations where the specifications are not fully defined or adequate. In this approach, the procurement process is divided into two distinct steps: the first step involves soliciting technical proposals from bidders without specifying the pricing, allowing for the assessment of their capabilities and understanding of the requirements. This is particularly useful when the procuring agency is unsure about the nuances of the specifications or when innovative solutions may be sought.

Once the technical proposals are evaluated, only those bidders who meet the criteria set forth in the first step are invited to submit their price proposals in the second step. This method combines the competitive spirit of sealed bidding—which promotes fair and equal competition—with a mechanism for refining the requirements based on expertise and innovation from bidders. It makes it easier for the agency to ensure that only proposals that fit their needs are considered for pricing, reducing the risk of receiving inadequate or non-compliant bids.

The other choices do not accurately reflect the primary purpose of Two Step Sealed Bidding. While enhancing negotiations, facilitating single-source procurement, or complying with micro-purchase regulations may be relevant in other contexts, they do not encapsulate the essential advantage of Two Step Sealed Bidding,