14.407-3
Other mistakes disclosed before award
FAR 14.407-3 sets strict procedures and evidentiary standards for correcting or withdrawing bids with mistakes disclosed after opening but before award, ensuring fairness and integrity in the bidding process.
Overview
FAR 14.407-3 addresses procedures for handling mistakes in bids that are disclosed after bid opening but before contract award. Its purpose is to ensure fair and efficient resolution of bid errors while maintaining the integrity of the competitive bidding process. The regulation outlines the authority and process for correcting or withdrawing bids, the evidentiary standards required, and the documentation and review steps necessary to support administrative determinations.
Key Rules
- Correction of Bids
- Bids may be corrected if clear and convincing evidence proves both the existence of a mistake and the intended bid, but only if the bid was initially responsive. Corrections that would displace lower bids require that the intended bid is ascertainable from the bid and invitation itself.
- Withdrawal of Bids
- If a bidder requests withdrawal and evidence is clear and convincing, withdrawal may be permitted. If the bid is lowest both as submitted and as corrected, correction may be allowed instead of withdrawal.
- Insufficient Evidence
- If evidence is not clear and convincing, withdrawal (but not correction) may be permitted by an official above the contracting officer.
- No Correction or Withdrawal
- If evidence does not support correction or withdrawal, the bid stands as submitted.
- Delegation and Legal Review
- Agency heads may delegate determination authority, but not redelegate. Legal counsel must concur with each determination.
- Verification and Documentation
- Contracting officers must verify suspected mistakes, request written evidence, and document all actions. Cases are referred to the appropriate authority with supporting documentation.
- Recordkeeping and Comptroller General Review
- Agencies must maintain records of all determinations and may refer doubtful cases to the Comptroller General.
Responsibilities
- Contracting Officers: Must verify suspected mistakes, request and review evidence, document actions, and refer cases as required.
- Contractors: Must provide clear and convincing evidence of mistakes and intended bids, and submit written requests for correction or withdrawal.
- Agencies: Must maintain records, ensure legal review, and follow delegation rules for determinations.
Practical Implications
- This section ensures mistakes are handled fairly without compromising the competitive process. Contractors must be diligent in preparing bids and responsive if errors are suspected. Contracting officers must follow strict procedures to avoid delays and disputes. Common pitfalls include insufficient evidence, missed deadlines, or improper documentation, which can result in lost contract opportunities or protests.