Run seven checks on a public bid: delivery-time price wording, line-item reasonableness, bidder eligibility, bond scope and withdrawal deadlines. Acquisition.gov states that any bid not conforming to applicable specifications shall be rejected unless the invitation authorized alternate bids and those alternates meet the invitation's requirements.
Key takeaways
- Flag delivery-time pricing immediately. A bid that fails to state a price and uses delivery-time pricing wording is subject to rejection under Acquisition.gov rules.
- Check individual line items, not just the total. Unreasonableness of price includes the prices for individual line items as well as the total bid price, according to Acquisition.gov.
- Note the North Carolina 72-hour window. A written withdrawal request must reach the public agency prior to contract award and not later than 72 hours after bid opening, unless instructions specify a longer period, according to the North Carolina General Assembly.
- Note the Virginia two-hour window. A bidder has two hours after bid opening to claim a mistake in writing and withdraw the bid, according to Virginia Law.
Bid risk checklist: the flags to raise in a price review
The first flag in a price review is specification conformity. Estimators should mark any deviation from the base specification immediately, as this triggers the rejection condition unless the alternate bid pathway is explicitly open and met.
This flag operates independently of total price reasonableness. A bid can be priced competitively yet still fail if it departs from the required specifications without authorized alternate status. The rule ties rejection directly to specification conformity, not to cost comparison. When reviewing a public construction bid price, verify whether the solicitation documents permit alternate bids. If they do not, federal rules require rejection of a bid that does not conform to the applicable specifications. If they do, confirm the alternate supplies meet the stated requirements before proceeding.
Before the review: identify the applicable bid provisions
Determine which federal rejection rules and state-specific statutes apply to your current solicitation before running the seven checks. Federal regulations set baseline conditions for rejecting individual bids, while state laws may impose distinct bond exclusions or withdrawal deadlines. Confirm the jurisdiction and contract type to ensure you are checking the correct provisions. For related rules, see public construction bid requirements.
Under federal rules, bids from persons or concerns that are suspended, debarred, proposed for debarment, or declared ineligible as of the bid opening date shall be rejected unless a compelling reason determination is made, according to Acquisition.gov. This eligibility check applies at the opening date and requires a specific determination for any exception. Separately, low bids from concerns determined to be not responsible pursuant to subpart 9.1 shall be rejected, with a specific reference to certificates of competency for small business concerns, as noted in Acquisition.gov. These federal conditions establish the baseline for bidder eligibility and responsibility that must be verified before proceeding to price or specification checks.
State provisions may differ significantly from these federal standards. For example, specific state statutes may define withdrawal windows, bond exclusions for design-build services, or evidence requirements for mistaken bids that are not covered by the federal rejection rules cited here. Do not assume that federal eligibility rules replace state-specific withdrawal or bonding requirements. Identify the governing jurisdiction for your bid to determine which set of provisions controls the review. If the solicitation is a state contract, locate the relevant state statutes for withdrawal timing and bond scope before applying the federal eligibility checks. This distinction prevents applying the wrong deadline or bond rule to your price review.
During the review: flag price terms, specifications and eligibility
Checks 1 through 4 focus on the price structure and the bidder's standing before any bond or withdrawal issues are considered. The first step is to verify that the bid states a price and does not use delivery-time pricing wording. Under the rejection criteria for individual bids, a bid fails to state a price if it indicates that the price shall be "price in effect at time of delivery" Acquisition.gov. This wording is a rejection condition under the cited rule.
The second price condition is a stated price qualified by delivery-time pricing wording. Even if a number is written on the bid form, attaching this qualification is a distinct ground for rejection under Acquisition.gov, separate from simply omitting a price. Estimators must ensure that no such delivery-time qualifiers appear in the price column or in any accompanying notes.
The third check moves from the total bid price to the individual components of the estimate. Unreasonableness of price includes not only the total price of the bid, but the prices for individual line items as well Acquisition.gov. This means that a bid can be rejected based on a single line item being unreasonable, even if the total sum appears competitive. When reviewing the takeoff and unit costs, flag any line item that deviates significantly from standard market rates or internal benchmarks, as the review process does not stop at the bottom line.
The fourth check addresses the bidder's eligibility to submit the bid. While the specific eligibility criteria vary by solicitation, the review must confirm that the bidder meets all stated qualifications before proceeding to bond and withdrawal checks. This step ensures that the bid is not only priced correctly but also submitted by an entity authorized to bid under the specific terms of the procurement. On the excluded-bidder and nonresponsibility grounds cited above, the bid is subject to rejection, subject to the compelling-reason determination and the certificates of competency for small business concerns noted above.
Mark any delivery-time price wording or line item deviations on the current bid form to identify which rejection conditions apply.
During the review: separate bond scope from withdrawal exposure
Checks 5 through 7 address the specific boundaries of security requirements and the procedural windows for correcting bid errors. These provisions vary by jurisdiction and contract type, so the checklist must isolate the applicable statute before applying a deadline or bond exemption.
Check 5: Design service bond check Under RCW 39.08.030, a performance and payment bond is not required for the portion of a design-build contract that includes design services, preconstruction services, and other services that are not public works construction included in the contract, according to the Washington State Legislature. When reviewing a design-build bid, identify the contract value allocated specifically to these nonconstruction services. The exclusion applies strictly to the portion of the contract containing these defined services. It does not remove bonding requirements for the public works construction portion of the same contract. Mark the estimated value of design and preconstruction services separately from construction costs in your price review. This separation determines which portion of the total bid price is subject to bond requirements under this specific provision. For the bonding side of the same contract, see the construction bonding checklist.
Check 6: Withdrawal timing check In North Carolina, a request to withdraw a bid must be made in writing to the public agency which invited the proposals for the work prior to the award of the contract, but not later than 72 hours after the opening of bids, or for a longer period as may be specified in the instructions to bidders provided prior to the opening of bids, according to the North Carolina General Assembly. The standard deadline is 72 hours after bid opening. However, the instructions to bidders may specify a longer period. Check the specific solicitation documents for any extended deadline before calculating your withdrawal window.
In Virginia, the bidder shall have two hours after the opening of bids within which to claim in writing any mistake as defined herein and withdraw his bid, according to Virginia Law. This window is significantly shorter than the North Carolina standard. Verify the bid opening time in your local jurisdiction to calculate this deadline accurately.
Check 7: Withdrawal evidence and restrictions North Carolina law states that if the agency finds that the price bid was based upon a mistake of the type described in the first paragraph of this section, then the agency shall issue a ruling permitting the bidder to withdraw without forfeiture of the bidder's security, according to the North Carolina General Assembly. This protection is conditional on the agency's finding regarding the type of mistake. If the work or purchase is relet for bids, under no circumstances may the bidder who has filed a request to withdraw be permitted to rebid the work or purchase, according to the North Carolina General Assembly. This restriction applies to the specific work or purchase that was relet.
Mark the specific deadline and bond scope on your current bid sheet. Identify whether your solicitation falls under the Washington design-build exclusion or the North Carolina or Virginia withdrawal procedures. This ensures you apply the correct timing and evidence requirements to your price review.
Bid risk reference table by publisher and jurisdiction
The table below lists the seven specific bid risk checks derived from the four distinct sources. Each row identifies the publisher, the jurisdiction or source title, and the key provision relevant to a price and withdrawal review.
Use this table to map your bid's specific conditions against these documented provisions before finalizing your risk assessment.
After the review: record each flag on the bid
Mark delivery-time price wording, specification departures and withdrawal conditions on the current bid, then identify which of the cited provisions apply to that solicitation. According to the Canadian Centre for Occupational Health and Safety, checklists or a risk matrix can be helpful in some cases. Use this structured approach to organize the seven checks identified earlier in this guide. Start by documenting the specific bid terms that triggered each flag. Record which of the seven checks revealed a potential rejection risk. Note the exact wording from the solicitation that creates the exposure. For a pre-submission check, see the sealed bid submission checklist.
FAQ: price conditions and mistaken public bids
What belongs on a public bid risk checklist?
A public bid risk checklist should include seven specific checks to evaluate price and withdrawal exposure. The first four checks cover delivery-time price wording, line-item reasonableness and bidder eligibility. The remaining three checks address the design service bond scope, withdrawal timing, and withdrawal evidence requirements.
Can an individual bid line item be unreasonable even when the total is being reviewed?
Yes, unreasonableness of price includes the prices for individual line items, not just the total price of the bid. According to Acquisition.gov, the review process considers individual line items when determining if a bid is unreasonable. This means estimators must verify each line item's reasonableness separately from the aggregate total.
Does the Washington bond exclusion cover the nonconstruction services portion of my design-build contract?
A performance and payment bond is not required for the portion of a design-build contract that includes design services, preconstruction services, and other services that are not public works construction included in the contract. As stated by the Washington State Legislature, this exclusion applies specifically to the nonconstruction services portion of the contract. Contractors should separate these services from the construction work when calculating bonding requirements.
When must a North Carolina bidder submit the withdrawal request described here?
A request to withdraw a bid must be made in writing to the public agency prior to the award of the contract, but not later than 72 hours after the opening of bids. The North Carolina General Assembly notes that a longer period may be specified in the instructions to bidders provided prior to the opening of bids. Bidders must check the specific solicitation instructions to determine if the 72-hour deadline is extended.
How must a mistake be proved under the Virginia withdrawal procedure?
Under the Virginia procedure, the mistake shall be proved only from the original work papers, documents, and materials delivered as required. Virginia Law specifies that the mistake is proved only from these original documents. Estimators should ensure their original work papers are complete and available for submission if a withdrawal is needed.