FAR 14.407-3—Other mistakes disclosed before award.
Plain-English Summary
FAR 14.407-3 addresses how the Government handles mistakes in sealed bids that are alleged or discovered after bid opening but before award, when the goal is to avoid unnecessary award delays while still protecting the integrity of the competition. It covers the limited authority to correct a bid, the circumstances under which a bidder may be allowed to withdraw a bid instead of correcting it, when the Government may require the bid to stand as submitted, and when a bid may be neither withdrawn nor corrected. It also explains the evidentiary standard of clear and convincing evidence, the special rule that correction cannot be used to make a nonresponsive bid responsive, and the additional restriction that correction cannot displace lower bids unless the intended bid is ascertainable substantially from the invitation and the bid itself. The section further sets out the processing steps for suspected mistakes, including immediate bid verification, bidder notice, requests for written withdrawal or modification, required supporting evidence, referral package contents, and the need for legal counsel concurrence. In practice, this provision is the main roadmap for contracting officers and agency decision-makers when a bidder claims an error after opening, because it balances fairness to the bidder against fairness to other bidders and the need to preserve the integrity of sealed bidding.
Key Rules
Only responsive bids may be corrected
The authority in this section can be used only for bids that are responsive as submitted. It cannot be used to fix a bid in a way that would make it responsive after opening, because that would undermine sealed-bid competition.
Clear and convincing proof required
Correction or withdrawal depends on strong evidence showing both that a mistake occurred and, for correction, what bid was actually intended. Mere suspicion, a bidder’s unsupported statement, or an official’s belief that an error likely occurred is not enough.
Correction allowed when intent is proven
If the bidder asks to correct the bid and clear and convincing evidence establishes the mistake and the intended bid, the agency head may authorize correction. If the correction would displace lower bids, correction is allowed only when the intended bid can be determined substantially from the invitation and the bid itself.
Withdrawal may be allowed when intent is unclear
If the evidence clearly shows a mistake but does not clearly establish the intended bid, or if the evidence reasonably supports a mistake but is not clear and convincing, an official above the contracting officer may permit withdrawal. This protects the bidder from being bound to an erroneous bid when the intended price cannot be proven.
Government may reject both withdrawal and correction
If the evidence does not support correction or withdrawal under the stated standards, the agency head may determine that the bid must remain neither withdrawn nor corrected. In that case, the bid is treated as submitted, subject to any other applicable rules.
Delegation is limited
Agency heads may delegate these determination authorities to a central authority or a limited number of authorities, but the delegation cannot be further redelegated. This keeps the decision-making concentrated and controlled.
Legal counsel must concur
Every proposed determination under this section must have agency legal counsel concurrence before issuance. This requirement helps ensure the decision is legally supportable and consistent with procurement law.
Verification and documentation are mandatory
When a mistake is suspected or alleged, the contracting officer must promptly seek bid verification and, if needed, ask for written withdrawal or modification supported by sworn statements and evidence such as worksheets, quotations, and price lists. The contracting officer must then assemble a detailed referral package for the deciding authority.
Responsibilities
Contracting Officer
Immediately request bid verification when a mistake is suspected; advise the bidder of the suspected error and the basis for concern; request written withdrawal or modification if the bidder alleges a mistake; collect and forward the required evidence and documentation; extend bid acceptance time when necessary; and, if evidence is not provided, generally treat the bid as submitted unless another rule applies.
Bidder
Verify the bid when asked; if alleging a mistake, submit a written request to withdraw or modify the bid; provide supporting evidence, preferably sworn, including worksheets, bid copies, quotations, and other relevant records; and respond to any request to extend the bid acceptance period if needed.
Agency Head
Make or authorize determinations permitting correction, permitting withdrawal, requiring the bid to stand as submitted, or denying both correction and withdrawal, based on the evidentiary standard and the specific circumstances.
Official Above the Contracting Officer
When the evidence supports a mistake but not clear proof of the intended bid, or reasonably supports a mistake without being clear and convincing, decide whether withdrawal may be permitted, unless agency procedures assign that role differently.
Agency Legal Counsel
Review and concur in each proposed determination before it is issued, ensuring the action is legally sufficient and properly documented.
Agency Head or Delegated Central Authority
Exercise the delegated authority to make mistake determinations, if delegation has been made, and do so without further redelegation.
Practical Implications
This section is a safeguard against both bidder hardship and unfair post-opening bid manipulation. Contracting officers must move quickly, document carefully, and avoid informal assumptions that a mistake occurred.
A low bid alone is not proof of error. If the contracting officer suspects a mistake, the bidder must be put on notice and given a real chance to verify or explain the bid.
The distinction between correction and withdrawal is critical: correction requires proof of the intended bid, while withdrawal may be allowed when the mistake is shown but the intended price is not.
Correction cannot be used to rescue a nonresponsive bid or to let a bidder undercut lower bids unless the intended bid is evident from the bid documents themselves. This is a common protest risk area.
The referral package matters. Missing worksheets, bid abstracts, bid copies, or the contracting officer’s narrative can delay or weaken the determination and may lead to an unsupported award decision.
Official Regulatory Text
In order to minimize delays in contract awards, administrative determinations may be made as described in this 14.407-3 in connection with mistakes in bids alleged after opening of bids and before award. The authority to permit correction of bids is limited to bids that, as submitted, are responsive to the invitation and may not be used to permit correction of bids to make them responsive. This authority is in addition to that in 14.407-2 or that may be otherwise available. (a) If a bidder requests permission to correct a mistake and clear and convincing evidence establishes both the existence of the mistake and the bid actually intended, the agency head may make a determination permitting the bidder to correct the mistake; provided, that if this correction would result in displacing one or more lower bids, such a determination shall not be made unless the existence of the mistake and the bid actually intended are ascertainable substantially from the invitation and the bid itself. (b) If- (1) A bidder requests permission to withdraw a bid rather than correct it; (2) The evidence is clear and convincing both as to the existence of a mistake and as to the bid actually intended; and (3) The bid, both as uncorrected and as corrected, is the lowest received, the agency head may make a determination to correct the bid and not permit its withdrawal. (c) If, under paragraph (a) or (b) of this subsection, (1) the evidence of a mistake is clear and convincing only as to the mistake but not as to the intended bid, or (2) the evidence reasonably supports the existence of a mistake but is not clear and convincing, an official above the contracting officer, unless otherwise provided by agency procedures, may make a determination permitting the bidder to withdraw the bid. (d) If the evidence does not warrant a determination under paragraph (a), (b), or (c) of this section, the agency head may make a determination that the bid be neither withdrawn nor corrected. (e) Heads of agencies may delegate their authority to make the determinations under paragraphs (a), (b), (c), and (d) of this 14.407-3 to a central authority, or a limited number of authorities as necessary, in their agencies, without power of redelegation. (f) Each proposed determination shall have the concurrence of legal counsel within the agency concerned before issuance. (g) Suspected or alleged mistakes in bids shall be processed as follows. A mere statement by the administrative officials that they are satisfied that an error was made is insufficient. (1) The contracting officer shall immediately request the bidder to verify the bid. Action taken to verify bids must be sufficient to reasonably assure the contracting officer that the bid as confirmed is without error, or to elicit the allegation of a mistake by the bidder. To assure that the bidder will be put on notice of a mistake suspected by the contracting officer, the bidder should be advised as appropriate- (i) That its bid is so much lower than the other bids or the Government’s estimate as to indicate a possibility of error; (ii) Of important or unusual characteristics of the specifications; (iii) Of changes in requirements from previous purchases of a similar item; or (iv) Of any other information, proper for disclosure, that leads the contracting officer to believe that there is a mistake in bid. (2) If the bid is verified, the contracting officer shall consider the bid as originally submitted. If the time for acceptance of bids is likely to expire before a decision can be made, the contracting officer shall request all bidders whose bids may become eligible for award to extend the time for acceptance of their bids in accordance with 14.404-1 (d). If the bidder whose bid is believed erroneous does not (or cannot) grant an extension of time, the bid shall be considered as originally submitted (but see paragraph (g)(5) of this section). If the bidder alleges a mistake, the contracting officer shall advise the bidder to make a written request to withdraw or modify the bid. The request must be supported by statements (sworn statements, if possible) and shall include all pertinent evidence such as the bidder’s file copy of the bid, the original worksheets and other data used in preparing the bid, subcontractors’ quotations, if any, published price lists, and any other evidence that establishes the existence of the error, the manner in which it occurred, and the bid actually intended. (3) When the bidder furnishes evidence supporting an alleged mistake, the contracting officer shall refer the case to the appropriate authority (see paragraph (e) of this section) together with the following data: (i) A signed copy of the bid involved. (ii) A copy of the invitation for bids and any specifications or drawings relevant to the alleged mistake. (iii) An abstract or record of the bids received. (iv) The written request by the bidder to withdraw or modify the bid, together with the bidder’s written statement and supporting evidence. (v) A written statement by the contracting officer setting forth- (A) A description of the supplies or services involved; (B) The expiration date of the bid in question and of the other bids submitted; (C) Specific information as to how and when the mistake was alleged; (D) A summary of the evidence submitted by the bidder; (E) In the event only one bid was received, a quotation of the most recent contract price for the supplies or services involved or, in the absence of a recent comparable contract, the contracting officer’s estimate of a fair price for the supplies or services; (F) Any additional pertinent evidence; and (G) A recommendation that either the bid be considered for award in the form submitted, or the bidder be authorized to withdraw or modify the bid. (4) Where the bidder fails or refuses to furnish evidence in support of a suspected or alleged mistake, the contracting officer shall consider the bid as submitted unless (i) the amount of the bid is so far out of line with the amounts of other bids received, or with the amount estimated by the agency or determined by the contracting officer to be reasonable, or (ii) there are other indications of error so clear, as to reasonably justify the conclusion that acceptance of the bid would be unfair to the bidder or to other bona fide bidders. Attempts made to obtain the information required and the action taken with respect to the bid shall be fully documented. (h) Each agency shall maintain records of all determinations made in accordance with this subsection 14.407-3 , the facts involved, and the action taken in each case. Copies of all such determinations shall be included in the file. (i) Nothing contained in this subsection 14.407-3 prevents an agency from submitting doubtful cases to the Comptroller General for advance decision.