What contract types may be used with sealed bidding procedures?

The primary contract types that can be used with sealed bidding procedures include firm fixed-price contracts and, in certain situations, fixed-price contracts with economic price adjustments. Firm fixed-price contracts are particularly suitable for sealed bidding because they provide a clear, unambiguous price that is set at the time of contract award, making it easier for bidders to submit competitive offers. Sealed bidding emphasizes competition and price, and firm fixed-price contracts align well with these principles by minimizing the risk of cost overruns and ensuring delivery timelines are met without significant cost variability.

Fixed-price contracts with economic price adjustments may also be used in the context of sealed bidding, albeit less frequently. These contracts allow for adjustments based on specific economic conditions, which can help protect both the contractor and the government from inflation or unforeseen economic changes.

In contrast, cost-reimbursement contracts and time and materials contracts are generally not suitable for sealed bidding due to their inherent complexity and unpredictability in cost estimation. These types of contracts do not lend themselves to the straightforward competition and pricing structures required in sealed bidding. Similarly, while indefinite delivery contracts can be used in federal procurement, they are typically not awarded through sealed bidding but rather through a different procurement approach that better accommodates flexible delivery and pricing structures.