FAR 14.407-1—General.
Plain-English Summary
FAR 14.407-1 establishes the basic post-opening bid-mistake review process in sealed bidding. It covers the contracting officer’s duty to examine all bids for mistakes after opening, the obligation to seek bid verification when a mistake is apparent or reasonably suspected, the bidder’s opportunity to confirm or allege a mistake, the requirement to process any alleged mistake under the broader procedures in FAR 14.407, and the critical timing rule that all of these actions must occur before award. In practice, this section is designed to protect the integrity of sealed bidding by preventing awards based on obvious errors while also preserving fair competition and the bidder’s right to explain or correct a mistake under the limited rules that apply to sealed bids. It matters because bid opening creates a strong presumption that bids are binding, so the contracting officer must act promptly and carefully when a bid appears inconsistent, incomplete, or otherwise suspicious. The section is a safeguard for both the Government and bidders: it helps avoid unfair awards, later disputes, and potential contract performance problems caused by an erroneous bid.
Key Rules
Examine all bids
After bid opening, the contracting officer must review every bid for mistakes. This is an affirmative duty, not a discretionary one, and it applies to all bids received under sealed bidding procedures.
Verify apparent mistakes
If a mistake is obvious on the face of the bid, or if the contracting officer has reason to believe a mistake may have occurred, the contracting officer must request bid verification. The request must specifically call attention to the suspected error so the bidder can review the bid with that issue in mind.
Process alleged mistakes
If the bidder says a mistake was made, the matter must be handled under the procedures in FAR 14.407. This means the contracting officer cannot simply ignore the allegation or proceed as though the bid were unproblematic.
Act before award
All mistake-review and verification actions must be completed before award. The contracting officer should not make award until the suspected issue is resolved or the bidder has verified the bid with knowledge of the concern.
Protect the sealed-bid process
The rule balances finality with fairness. It preserves the integrity of sealed bidding by preventing award on a bid that may be erroneous, while limiting post-opening changes to the narrow circumstances allowed by the FAR.
Responsibilities
Contracting Officer
Examine all bids after opening for possible mistakes; identify apparent errors or situations suggesting a mistake may have occurred; request verification from the bidder and clearly identify the suspected issue; if the bidder alleges a mistake, process the matter under FAR 14.407; ensure all actions are completed before award.
Bidder
Review the verification request and confirm whether the bid is correct; if a mistake exists, promptly allege it and provide the matter for processing under FAR 14.407; respond before award so the contracting officer can resolve the issue in time.
Agency
Support contracting personnel in following sealed-bid mistake procedures and ensure awards are not made until suspected bid errors are addressed in accordance with FAR 14.407.
Practical Implications
Contracting officers should treat unusual pricing, math errors, missing items, or inconsistent bid entries as warning signs that require verification before award.
A verification request should be specific; vague requests can fail to put the bidder on notice of the suspected mistake and may weaken the Government’s position later.
If a bidder alleges a mistake, the contracting officer must switch from simple verification to the formal FAR 14.407 mistake-handling process rather than proceeding directly to award.
Timing is critical: once award is made, the Government’s options become much more limited, so suspected mistakes should be addressed immediately after bid opening.
Contractors should understand that bid opening does not automatically lock them into an obviously erroneous bid without review, but they must raise any mistake promptly and clearly before award.
Official Regulatory Text
After the opening of bids, contracting officers shall examine all bids for mistakes. In cases of apparent mistakes and in cases where the contracting officer has reason to believe that a mistake may have been made, the contracting officer shall request from the bidder a verification of the bid, calling attention to the suspected mistake. If the bidder alleges a mistake, the matter shall be processed in accordance with this section 14.407 . Such actions shall be taken before award.