FAR 28.101-4—Noncompliance with bid guarantee requirements.

Sealed bidding requires rejection

In sealed bidding, failure to comply with a solicitation’s bid guarantee requirement generally means the bid must be rejected. The only exception is when one of the listed waiver situations applies and the contracting officer does not make a written determination that acceptance would be detrimental to the Government.

Negotiated awards may be rejected or corrected

In negotiations, a noncompliant bid guarantee makes an initial proposal unacceptable if the agency intends to award on initial proposals without discussions. If discussions will occur, deficiencies in bid guarantees for offerors in the competitive range must be addressed during discussions and the offeror must be given a chance to fix the problem.

Waiver for one offer received

If only one offer is received, noncompliance with the bid guarantee requirement must be waived unless the contracting officer writes that acceptance would harm the Government’s interest. The contracting officer may still require the guarantee before award.

Waiver for minor amount shortfall

A bid guarantee that is less than required may still be waived if it is at least equal to the difference between the offer price and the next higher acceptable offer. This prevents rejection where the Government still has adequate protection against the price difference risk.

Waiver for partial quantity coverage

If the guarantee is sufficient for a quantity the offeror is otherwise eligible to receive, the deficiency is waived, but any award cannot exceed the quantity covered by the guarantee. This rule allows award on a reduced basis when the guarantee supports only part of the offer.

Waiver for late or corrected defects

Late bid guarantees may be waived if late receipt is waived under FAR 14.304, and a guarantee that becomes inadequate because of a corrected mistake may be accepted if the bidder increases the guarantee to the required level for the corrected bid. These rules prevent technical timing or correction issues from causing unnecessary rejection when the underlying bid remains otherwise proper.

Waiver for certain bond defects

An otherwise acceptable bid bond is not rejected merely because the offeror did not sign it, the date is wrong or missing, or the United States is not listed as obligee, so long as the bond otherwise correctly identifies the offeror, solicitation number, and project location and is acceptable in all other respects. These are treated as curable or nonmaterial defects.

Contracting Officer

Determine whether the solicitation requires a bid guarantee and enforce the requirement in sealed bidding and negotiated procurements. Reject noncompliant bids or initial proposals when required, or waive defects only in the listed circumstances unless a written detrimental-interest determination is made. In negotiated procurements with discussions, raise bid guarantee deficiencies during discussions and allow correction. Document any decision that acceptance would be detrimental to the Government’s interest.

Contractor / Offeror / Bidder

Submit a bid guarantee that fully complies with the solicitation, including amount, form, timing, and required identifying information. If a deficiency is identified in a negotiated procurement with discussions, correct it promptly when given the opportunity. If a bid is corrected for mistake, increase the guarantee to the required level if the correction makes the original guarantee inadequate.

Agency

Ensure solicitations clearly state bid guarantee requirements and that acquisition personnel apply the rejection, waiver, and correction rules consistently. Support contracting officers in documenting detrimental-interest determinations and in handling late submissions, mistakes, and bond defects in accordance with the FAR.