A federal mistake alleged before award starts with verification: the contracting officer shall immediately request the bidder to verify the bid, according to Acquisition.gov. In North Carolina, a bidder who files a request to withdraw his bid gets a hearing that the agency promptly holds, and the agency issues a written ruling within five days after that hearing, according to North Carolina General Assembly. The two paths come from different jurisdictions, so the steps for one should not be applied to the other.
Key takeaways
- keep the bid file and the error notice together, so any verification request can be answered from one record.
- answer a federal verification request first, because the rule makes that request immediate, according to Acquisition.gov.
- check whether the acceptance period could expire before a decision, since the federal rule then calls for extension requests, according to Acquisition.gov.
- in North Carolina, decide early whether to attend the withdrawal hearing in person or through counsel, since the bidder may appear either way, according to North Carolina General Assembly.
- note the 20-day window to file a civil action after a denied withdrawal, according to North Carolina General Assembly.
Why bid errors after opening matter to your price
Administrative determinations may be made in connection with mistakes in bids alleged after opening of bids and before award, according to Acquisition.gov. The section's stated aim is to minimize delays in contract awards, according to Acquisition.gov. The section is titled Other mistakes disclosed before award, according to Acquisition.gov.
A practical habit is to treat the first hours after you spot an error as a records task. Write down the line item, the figure as submitted, and the figure you believe was intended, before anyone contacts the agency. Estimate the effect of the error on your submitted price before you contact anyone, so your first message to the agency states a specific figure rather than a general concern.
The Minnesota text starts from a different place. The state recognizes, according to Minnesota Legislature, the importance of the inclusion of a best value contracting system for construction as an alternative to the current low-bid system of procurement.
What happens after you report a mistake
The federal and North Carolina sequences start from different events, so keep them apart. The table quotes one sentence from each publisher's source, and each cell matches that quote.
Record the date you raised the mistake, since the federal request to verify is described as immediate, according to Acquisition.gov. Keep a copy of the bid as submitted beside the figures you are reviewing, so the file shows what was submitted and what is under question.
The federal and North Carolina rows answer different questions. The federal row concerns a verification request, and the North Carolina row concerns a written ruling after a withdrawal hearing, so each needs its own branch in your procedure.
Federal rule: verify the bid first
The federal section gives the contracting officer the first move. If the bid is verified, the contracting officer shall consider the bid as originally submitted, according to Acquisition.gov. Your own bid file is the place to start when you prepare a response.
The rule places the request to verify in sentence (1) and the treatment of a verified bid in sentence (2). Keep the two apart when you brief your team, because the treatment depends on the bid being verified, and the request comes before that outcome. Your team should not treat the request as a finding, since the quoted sentence describes a request that the contracting officer makes.
A useful habit is to put the submitted figures and the figures under review side by side on one sheet, so the response states exactly what was submitted. Assign the verification response to one named person in your office, so the reply comes from someone who has the complete file. Write the reply so it states each figure as it appears in the bid, and attach the working papers behind each one. Before the reply goes out, have a second person compare each figure in the reply against the bid as submitted, so the response matches the file. Date the reply and keep a copy with the verification request it answers. See also Check 8 public bid rules before you submit.
Federal rule: time extensions and the original bid
The federal section also covers the acceptance period. The acceptance-period clause says that 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), according to Acquisition.gov.
The non-extension clause covers a bidder who does not extend. It says that 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, according to Acquisition.gov. That sentence also carries a cross-reference to paragraph (g)(5).
The two clauses together describe two outcomes: a bidder may be asked for an extension, and if that extension is not or cannot be granted, the bid is considered as originally submitted, subject to paragraph (g)(5) of the rule, which this article does not quote. Your office should decide in advance who answers an extension request and what the office can say if it cannot grant one. Check the acceptance date for your bid now, since the acceptance-period clause applies when the time for acceptance is likely to expire before a decision can be made.
North Carolina: the withdrawal hearing
The North Carolina section is built around a withdrawal request rather than a verification request. The section says that if a bidder files a request to withdraw his bid, the agency shall promptly hold a hearing thereon, according to North Carolina General Assembly. It also says that the bidder, either in person or through counsel, may appear at the hearing and present any additional facts and arguments in support of his request to withdraw his bid, according to North Carolina General Assembly.
Because the hearing follows a filed request, the file should show when the request was filed. Note also the date the hearing is set, since the section uses the word promptly for the agency's action. Record the hearing date and the names of everyone who appeared for the bidder, so the file shows who presented the facts.
A practical step is to gather the facts you plan to present before the hearing date, because the section lets the bidder present additional facts and arguments. Attach the supporting document to each point, so the presentation at the hearing matches your bid file. Decide in advance whether a principal or counsel will attend, since the section names both options. These steps belong to a North Carolina withdrawal request, and they do not replace the federal verification process described above. For related withdrawal checks, see the bid risk checklist.
North Carolina: the ruling and the 20-day appeal
The section also sets a timeline for the decision. The agency shall issue a written ruling allowing or denying the request to withdraw within five days after the hearing, according to North Carolina General Assembly. If the ruling denies the request, the section gives the bidder a further deadline: the bidder may contest the matter by filing a civil action in a court of competent jurisdiction in North Carolina within 20 days after the ruling arrives, according to North Carolina General Assembly.
The 20-day deadline applies only when the request is denied, so an allowed request does not bring it into play. Keep a copy of the written ruling in the bid file, and note whether it allows or denies the request.
A useful habit is to log the day the ruling arrives, since the 20-day period runs from that day, and to ask your own counsel how that count applies to your case. Put the hearing date, the ruling date and the arrival date on one calendar, and keep the written ruling with the bid file so the count can be checked later.
What records to keep on file
The federal section sets a record requirement for agencies. It says each agency shall maintain records of determinations made in accordance with this subsection, the facts involved, and the action taken in each case, according to Acquisition.gov.
That requirement is written for agencies, so your office file is a separate record. A practical file mirrors the three parts the rule names: the determination or ruling you received, the facts you put forward, and the action your office took. The file can also hold the bid as submitted, the verification request, the extension decision, and any withdrawal ruling, arranged in date order.
Store the bid as submitted, the working papers behind each figure, and the correspondence with the agency in one location. Keep that location named in the one-page procedure described below, so anyone answering a request can find the complete file. Keep the federal and North Carolina records in separate folders, since each section has its own sequence of steps. Write a short note beside each entry giving the date it was received, so the sequence can be rebuilt in order.
Your next step
Your next step is a one-page bid-error procedure for your office, listing who verifies the bid, who contacts the agency, and where the records go. A workable setup names one person for the verification response, one person for agency contact, and one shared location for the file. Use the federal and North Carolina sections as two separate branches, labelled by jurisdiction. Include the acceptance date, the extension decision, and the hearing and ruling dates on the page, so each deadline sits beside the person who owns it. Store the finished page in the bid file itself, so it travels with the bid record.
Related guides: Public bid labor: 6 checks before you lock costs · Best value bid review: 6 checks before pricing work.
FAQ
Who asks me to verify a bid after opening?
In a federal bid, the contracting officer shall immediately request the bidder to verify the bid, according to Acquisition.gov.
How soon does a North Carolina agency rule on a withdrawal request?
The agency shall issue a written ruling within five days after the hearing, according to North Carolina General Assembly.
How long do I have to contest a denied withdrawal in North Carolina?
The bidder has 20 days after the ruling arrives to contest a denial by filing a civil action, according to North Carolina General Assembly.