I recently bid on a project for a company. I was the low bidder. then the company said that they have to give first right of refusal to my competitor. with was tens of thousands higher than me. so why bid it then give my competitor the right to do the work for my bid price?
The federal government uses a detailed set of regulations known as the Federal Acquisition Regulations (FAR) with regard to procurement. State and municipal governments likely have their own regulations.
Before choosing a contractor, federal agencies tend to use sealed bidding or competitive negotiation. Sealed bidding is used with regard to routine construction, non-complex services, repairs, and off-the-shelf supplies. Sealed bidding is used where the choice is based on price and discussion is unnecessary.
Under competitive negotiation, besides price and cost, federal agencies can evaluate technical factors, past performance, and company management. An agency can choose a proposal other than the one with the lowest price. This negotiation process is more involved than sealed bidding is.
The competitive requirement for selecting a contractor can be waived under certain circumstances. For example, the agency may have had a relationship with a vendor that previously supplied a good or service, and that is the only vendor with compatible equipment to service the job.
In the future, if the value of the job warrants it, you should consider using an attorney to help you with your submission of a solicited or unsolicited bid.
The Request for Proposal will likely give you a lot of the answers you are seeking. Other than the category, It is unclear if this is a state or federal contract, which makes a big difference in the rules to be followed. If it is state-regulated, you need to look to the jurisdiction where the company is located. Seek a construction or business attorney's expertise for guidance.
There are multiple reasons you may not have won the business. Look to the RFP/solicitation documentation for any specific award restrictions or set-asides. It may be the case that the Prime violated federal or state procurement law, and you should consult with a Govt. Contracts attorney.
