Legal effect of quotations
A supplier's quotation is not a binding offer; a contract is only formed when the supplier accepts the Government's order, and the Government can withdraw or amend its offer before acceptance.
Overview
FAR 13.004 clarifies the legal status of quotations in the simplified acquisition process. It establishes that a supplier's quotation is not a binding offer, and the Government's issuance of an order in response to a quotation is considered an offer to buy, not the formation of a contract. A contract is only formed when the supplier accepts the Government's offer, either by written notification, delivery of goods or services, or substantial performance. The regulation also allows the Government to withdraw, amend, or cancel its offer at any time before the supplier's acceptance, providing flexibility in the procurement process. Contracting officers are encouraged to obtain written acceptance when appropriate, but acceptance can also be demonstrated through performance.