Mistakes after award
Mistakes discovered after contract award require clear evidence, legal review, and thorough documentation to determine if correction, rescission, or reformation of the contract is warranted.
Overview
FAR 14.407-4 addresses the procedures for handling mistakes in bids discovered after contract award. If a contractor identifies a mistake post-award, the issue is processed under FAR Subpart 33.2 and specific procedures outlined here. Corrections may be made by contract modification if it benefits the Government and does not alter essential contract requirements. Agencies may also rescind or reform contracts, or decide no change is warranted, but only with clear and convincing evidence of a mistake. The regulation requires coordination with legal counsel and detailed documentation, including evidence from the contractor and a comprehensive case file. Agencies must maintain records of all determinations and actions taken regarding post-award mistakes.
Key Rules
- Correction by Modification
- Mistakes may be corrected by contract modification if it favors the Government and does not change essential requirements.
- Rescission or Reformation
- Agencies can rescind or reform contracts (delete items or increase price within limits) or decide no change is needed, based on clear and convincing evidence.
- Evidence Requirements
- Determinations require clear and convincing evidence of a mutual mistake or a unilateral mistake that should have been apparent to the contracting officer.
- Legal Coordination
- All determinations must be coordinated with legal counsel.
- Documentation and Case File
- Contracting officers must collect and document all relevant evidence, correspondence, and determinations in the case file.
- Agency Recordkeeping
- Agencies must keep a record of all determinations, facts, and actions taken for each case.
Responsibilities
- Contracting Officers: Must request evidence, document findings, coordinate with legal counsel, and maintain comprehensive case files.
- Contractors: Must submit written statements and supporting evidence to substantiate the alleged mistake.
- Agencies: Must ensure proper legal review and maintain records of all determinations and actions taken.
Practical Implications
- This section ensures mistakes discovered after award are handled fairly and transparently, protecting both government and contractor interests.
- It requires thorough documentation and legal oversight, which can delay resolution if not managed proactively.
- Common pitfalls include insufficient evidence, lack of legal coordination, or incomplete documentation, which can jeopardize corrective actions or contract modifications.