Mistakes in bids
FAR 14.407 provides structured procedures for identifying and resolving bid mistakes to ensure fairness and protect both the government and bidders in sealed bidding.
Overview
FAR 14.407 addresses the procedures and responsibilities for identifying, evaluating, and resolving mistakes in bids during sealed bidding. This section outlines how contracting officers should handle apparent clerical errors, other mistakes discovered before award, and mistakes found after contract award. The goal is to ensure fairness and integrity in the bidding process while protecting both the government and bidders from unintended errors.
Key Rules
- General Procedures (14.407-1)
- Establishes the overall approach for handling bid mistakes, emphasizing prompt identification and resolution.
- Apparent Clerical Mistakes (14.407-2)
- Allows correction of obvious clerical errors (e.g., misplaced decimal points) if the intended bid is clear from the bid documents.
- Other Mistakes Disclosed Before Award (14.407-3)
- Provides procedures for handling non-clerical mistakes discovered before award, including withdrawal or correction under specific conditions.
- Mistakes After Award (14.407-4)
- Details the limited circumstances under which mistakes discovered after award may be addressed, typically requiring higher-level approval.
Responsibilities
- Contracting Officers: Must review bids for mistakes, determine the type of error, document findings, and obtain necessary approvals for corrections or withdrawals.
- Contractors/Bidders: Should promptly notify the contracting officer if a mistake is discovered and provide supporting evidence.
- Agencies: May need to approve corrections or withdrawals, especially for mistakes after award.
Practical Implications
- Ensures a fair process for correcting genuine errors without compromising the integrity of sealed bidding.
- Contractors must carefully review bids before submission and act quickly if errors are found.
- Failure to follow procedures can result in lost contract opportunities or legal disputes.