Bid Validity Period Extension

A bid validity period extension is an extension of the period during which a submitted bid remains open for acceptance by the procuring authority. Every bid carries a validity period, and the buyer needs that time to evaluate bids and complete its approvals. When the process runs longer than planned, the buyer asks bidders to keep their bids open for longer.

In Canadian federal solicitations, Canada may request this extension from responsive bidders in writing before the original validity period expires. Bidders are free to accept or reject the request. The clause appears in requests for proposals and invitations to tender published on CanadaBuys.

How the extension request works in CanadaBuys solicitations

The solicitation sets the original validity period. One CanadaBuys RFP required bids to remain open for acceptance for at least 90 days unless the solicitation specified otherwise. It allowed Canada to seek an extension from all responsive bidders in writing at least three days before the validity period ended. The 90-day RFP sets out this wording.

A separate RFP used a shorter period. It required bids to remain valid for at least 60 calendar days from the closing date and again allowed Canada to seek an extension from all responsive bidders at least three days before the period ended. The 60-day RFP also states that bidders have the option to accept or reject the proposed extension.

An invitation to tender on CanadaBuys labelled the provision "SI07 BID VALIDITY PERIOD." It follows the same pattern: Canada may seek an extension, bidders may accept or reject it, and Canada may continue evaluating accepting bidders or cancel the invitation. The clause is visible in this invitation to tender.

What happens when bidders accept or reject

• If all responsive bidders accept the extension in writing, Canada can continue bid evaluation and its approval processes.
• If not all bidders accept, Canada may continue evaluating the bids of those that accepted.
• Canada may instead cancel the solicitation, or cancel and reissue it, depending on the wording of the solicitation.

The outcome rests on the individual solicitation, so the clause in each document governs. The provisions on accepting or rejecting are set out in the bid solicitation itself.

Where bid validity comes from in federal guidance and allied practice

Government of Canada contracting guidance addresses the underlying concept. Where a bidder limits the validity period of its bid, the limitation should be specified in the offer. The same guidance says a period may need to be established during which acceptance of the bid remains valid. The Treasury Board contracting guidance sets this out.

Allied defence procurement uses comparable language. UK Ministry of Defence tender documents refer to a "tender validity period" during which tenders remain open for acceptance, as in the UK defence and security tendering guidance.

What a bid validity extension means for a supplier

Read the bid validity clause in every solicitation before you submit. Note the minimum period, the window in which Canada can request an extension, and the stated consequences if bidders decline. Canada may send the request as little as three days before expiry, so someone on your team must be able to answer quickly and in writing.

Accepting keeps your bid in the evaluation. Rejecting can remove your bid from consideration, since Canada may continue evaluating only the bids of those that accepted, and the solicitation may be cancelled or reissued. Before you accept, confirm that your pricing, key personnel and subcontractor commitments will hold for the added time.