Bid Validity Period

When you submit a bid to a Canadian federal procurement, you're making a binding commitment that extends well beyond the closing date. The bid validity period determines exactly how long you must keep your pricing, terms, and commitments locked in place while the government evaluates proposals and works through the award process. In federal procurements, this typically runs between 60 and 180 days, though the specific timeframe varies based on procurement complexity and applicable trade agreements.

How It Works

The Supply Manual establishes the requirements for bid validity periods across federal procurements, making it clear that your submission isn't just an estimate—it's an irrevocable offer. Once you submit, you can't adjust your pricing because material costs increased or you landed a bigger contract elsewhere. The clock starts ticking at bid closing and runs for the duration specified in the solicitation documents.

The length of the validity period often reflects procurement complexity. A straightforward supply arrangement might specify 60 days. Major infrastructure projects or complex IT implementations? You're looking at 120 or even 180 days. PSPC and other contracting authorities build in this buffer because evaluation, clarifications, and approval processes take time—especially when procurements fall under NAFTA or WTO-AGP thresholds requiring additional scrutiny.

What happens if the government can't complete its evaluation and award within the validity period? They'll typically reach out requesting an extension. Here's the thing: you're not obligated to grant it. Some bidders do as a goodwill gesture, hoping to preserve their competitive position. Others decline, particularly if market conditions have shifted significantly or the extended timeline creates resource conflicts with other commitments. If too many bidders withdraw, the government may need to re-compete the entire requirement.

Key Considerations

• Extension requests aren't automatic approvals. When a contracting authority at Treasury Board or DND asks for more time, evaluate your position carefully. Market volatility, currency fluctuations, or changes in your cost structure might make that extension financially risky.

• The validity period differs from response time. Don't confuse how long you have to prepare your bid with how long it remains valid. Trade agreement procurements require minimum 40-day bidding periods for open tendering, while non-trade solicitations need at least 15 calendar days. But once submitted? Your bid stays firm for the validity period specified—an entirely separate timeframe.

• Clarification windows operate under different rules. During evaluation, if PSPC or another authority requests clarification about your submission, you typically have just two working days to respond. Miss that window and your bid gets declared non-responsive, regardless of how much validity period remains.

• Documentation protects both parties. The bid validity period creates a predictable framework for the evaluation process. It gives evaluators time to conduct due diligence while protecting bidders from indefinite commitment exposure. Smart procurement planning by contracting authorities means setting realistic validity periods that match anticipated award timelines.

Related Terms

Irrevocable Bid, Solicitation Period, Standstill Period, Contract Award Timeline, Bid Withdrawal

Sources

• Supply Manual - Bid Validity and Irrevocable Bid Periods

• Procurement Practice Review - Elections Canada Bidding Periods

• Assessor Guidance for Supply Arrangement Requirements

Before submitting any federal bid, confirm the validity period and honestly assess whether you can hold your pricing firm for that duration. It's better to request clarification upfront than to face difficult extension decisions—or financial exposure—months down the line.