Bid Validity Period

A bid validity period is the length of time, set out in the solicitation documents, during which a submitted bid must remain valid. The bidder keeps its offer open for that whole period so the buyer can still accept it.

Buyers use the period to give themselves time to evaluate bids, obtain approvals and award a contract. NATO's Procurement Manual states that bids must remain valid for the period specified in the solicitation documents. The period is a fixed requirement of the bid, not a courtesy.

How NATO sets the length of a bid validity period

NATO guidance says a bid validity period will usually range from 60 to 180 days, depending on the circumstances. The buyer chooses the length and states it in the solicitation. The NATO Procurement Manual also says that an offer with a shorter validity period than the one requested must be rejected as non-responsive. A bidder cannot shorten the period to suit its own pricing or capacity risk.

Solicitations from NATO Allied Command Transformation (ACT) carry a section headed "Bid Validity". HQ Supreme Allied Commander Transformation (HQ SACT) solicitations commonly require bids to remain valid for 120 days from the closing date. You can see this wording in the ACT solicitation IFIB-ACT-SACT-25-045.

Bid validity and the bid bond

The validity period is tied to the bid bond. NATO says the validity of the bid bond should generally be for the same period as the proposal's validity. If a solicitation requires a bond, the bond and the bid should cover matching dates. A bid with a 120-day validity period should be backed by a bond that runs for the same 120 days.

Extension requests and withdrawal

Evaluation and approvals can run longer than planned, so buyers sometimes need more time. In an HQ SACT solicitation, the organization reserves the right to request an extension of validity. The ACT solicitation IFIB-ACT-SACT-22-117, Amendment 1 sets out the terms.

• The buyer may ask bidders to extend the validity period.
• The bidder may grant or deny the extension.
• If the bidder denies the request, the denial is automatically treated as withdrawal of the bid.

A refusal therefore removes the bidder from the competition. A bidder that wants to stay in must agree to the longer period.

What bid validity means for a Canadian supplier

Every solicitation states its own validity period, so read that clause before you price. Your price, your supply commitments and any bid bond must hold for the full period. A shorter period than the one requested is grounds for rejection as non-responsive under NATO rules.

Canadian suppliers bidding on NATO ACT work should expect a requirement of 120 days from closing. They should also expect to be asked for an extension and should decide in advance whether they can grant one. Check with your suppliers, subcontractors and surety provider that their commitments last as long as your bid does. Where a bond is required, confirm its dates match the validity period.