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Step one consists of the request for, submission, evaluation, and (if necessary) discussion of a technical proposal. No pricing is involved. The objective is to determine the acceptability of the supplies or services offered. As used in this context, the word "technical" has a broad connotation and includes, among other things, the engineering approach, special manufacturing processes, and special testing techniques. It is the proper step for clarification of questions relating to technical requirements.

Step two involves the submission of sealed priced bids by those who submitted acceptable technical proposals in step one.

took it here https://www.acquisition.gov/far/html/Subpart%2014_5.html

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