FAR 14.407—Mistakes in bids.

General.

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.

Apparent clerical mistakes.

FAR 14.407-2 addresses how contracting officers handle apparent clerical mistakes in sealed bids before award. It covers what counts as a clerical mistake that is obvious on the face of the bid, the requirement to obtain bidder verification of the intended bid before making any correction, examples of common apparent errors such as misplaced decimal points, incorrect discount schedules, reversed FOB origin/destination pricing, and mistakes in unit designation, and the proper way to document corrections in paper and electronic bid files. The section exists to protect the integrity of sealed bidding by allowing obvious, non-substantive errors to be corrected without unfairly changing the competitive standing of bidders or creating post-opening manipulation. In practice, it means the contracting officer must be cautious: if the mistake is truly apparent and the intended bid can be verified, the bid may be corrected before award; if not, the bid must be handled under the more restrictive mistake-in-bid procedures. The documentation rules are also important because the correction must be traceable in the official record, not altered directly on the bid itself. For electronic data interchange bids, the same principles apply, but the recordkeeping is done in the electronic solicitation file.

Other mistakes disclosed before award.

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.

Mistakes after award.

FAR 14.407-4 addresses what happens when a bidder discovers and raises a mistake in its bid only after award in a sealed bidding procurement. It explains how post-award mistakes are handled under the mistake-in-bid procedures in subpart 33.2, and it distinguishes among the available remedies: contract modification to correct a mistake when doing so benefits the Government and does not change the essential specifications, rescission of the contract, reformation of the contract by deleting the mistaken items or increasing the price in limited circumstances, or leaving the contract unchanged when the evidence is insufficient. The section also sets the evidentiary standard for relief, requiring clear and convincing evidence of the mistake and proof that the mistake was mutual or so obvious that the contracting officer should have been on notice. It requires legal review of proposed determinations and sets out the documentation the contracting officer must collect, including bid copies, worksheets, supplier quotes, price lists, the invitation for bids, bid abstract, contract documents, correspondence, and a detailed contracting officer statement. Finally, it requires the agency to retain a record of the determination, the facts, and the action taken. In practice, this section protects the integrity of sealed bidding while allowing limited equitable relief when the record shows a genuine mistake and the proposed remedy is legally supportable.