FAR 14.406—Receipt of an unreadable electronic bid.
Plain-English Summary
FAR 14.406 addresses what happens when a bid submitted electronically to a Government facility through electronic data interchange (EDI) arrives in an unreadable condition. The section is narrowly focused on unreadable electronic bids in sealed bidding and explains when a contracting officer must treat the bid as rejectable, what immediate notice must be given to the bidder, and what the bidder must prove to avoid rejection. It requires the bidder to provide clear and convincing evidence both of the bid’s original contents and that the unreadable condition was caused by Government software or hardware error, malfunction, or other Government mishandling. In practice, this rule protects the integrity of the sealed bidding process while recognizing that Government-side technical problems can corrupt an otherwise timely and valid bid. It also places a heavy evidentiary burden on the bidder, so contractors must preserve transmission records and submission details, and contracting officers must act quickly once unreadability is discovered.
Key Rules
Unreadable EDI bids may be rejected
If an electronically transmitted bid received at a Government facility is unreadable to the point that the contracting officer cannot determine whether it meets the essential requirements of the invitation for bids, the bid is subject to rejection. The key issue is not merely that the file is inconvenient to open, but that its contents cannot be reliably ascertained.
Immediate notice is required
The contracting officer must immediately notify the bidder that the bid will be rejected unless the bidder can satisfy the rule’s proof requirements. This prompt notice is intended to give the bidder a chance to respond before the bid is finally rejected.
Bidder must prove original content
To avoid rejection, the bidder must provide clear and convincing evidence of what the bid actually contained when originally submitted. This is a high evidentiary standard, so the bidder needs reliable records such as transmission logs, copies of the submitted file, or other contemporaneous documentation.
Bidder must prove Government fault
The bidder must also show, by clear and convincing evidence, that the unreadable condition was caused by Government software or hardware error, malfunction, or other Government mishandling. If the problem arose from the bidder’s own systems, formatting, or transmission errors, this section does not protect the bid.
Both proof elements are required
The bidder must establish both the bid’s original content and Government-caused unreadability. Showing only one of these elements is not enough; failure to prove either element supports rejection of the bid.
Responsibilities
Contracting Officer
Determine whether the electronically received bid is unreadable to the extent that compliance with the invitation cannot be ascertained, immediately notify the bidder of the potential rejection, and reject the bid unless the bidder provides the required clear and convincing evidence.
Bidder/Contractor
Maintain evidence of the bid as originally submitted and of the circumstances of transmission, then promptly provide clear and convincing proof of both the bid content and Government-caused error or mishandling if notified of unreadability.
Government IT/Receiving Activity
Operate and maintain the Government’s electronic receiving systems so bids can be received and preserved accurately, and investigate whether software, hardware, or handling problems may have caused unreadability.
Practical Implications
Contractors should keep exact copies of submitted files, transmission confirmations, timestamps, and any system-generated receipts, because the burden of proof is on the bidder.
A bid that cannot be read is not automatically salvaged just because it was timely sent; the bidder must also tie the problem to Government-side error or mishandling.
Contracting officers should act quickly once unreadability is discovered, because the regulation requires immediate notice and the issue can affect award timing.
This rule is especially important in sealed bidding, where preserving the integrity of the bid opening and evaluation process is critical.
Common pitfalls include submitting corrupted files, using incompatible formats, failing to retain proof of the original bid, and assuming that any technical failure will be excused.
Official Regulatory Text
If a bid received at the Government facility by electronic data interchange is unreadable to the degree that conformance to the essential requirements of the invitation for bids cannot be ascertained, the contracting officer immediately shall notify the bidder that the bid will be rejected unless the bidder provides clear and convincing evidence- (a) Of the content of the bid as originally submitted; and (b) That the unreadable condition of the bid was caused by Government software or hardware error, malfunction, or other Government mishandling.