Bid Validity Period Extension

When your evaluation takes longer than expected—and in federal procurement, it often does—you may need to ask bidders to keep their proposals valid beyond the original deadline. A bid validity period extension gives you that breathing room, but it comes with strings attached. Bidders can refuse. And if they do, they're free to walk away or change their pricing.

How It Works

Under the Standard Instructions for Goods or Services - Competitive Requirements 001, Canada reserves the right to request an extension from all responsive bidders in writing, with a minimum of three days' notice before the original validity period expires. That's not much time to make a decision, especially if your procurement team is juggling multiple files. The initial bid validity period is typically 90 days from the solicitation closing date, as specified in Section 5.5 of the Supply Manual.

Here's the catch: if even one responsive bidder refuses the extension, you're at a crossroads. Canada can either proceed with evaluating only the bids from bidders who accepted the extension, or cancel the entire solicitation. That's a discretionary call, and it needs to be documented carefully. In practice, this means your contracting authority must weigh whether continuing with fewer bidders compromises competition or whether restarting the process is worth the delay and cost.

The rationale for needing an extension must be justified. Maybe your technical evaluation team at DND needs more time for complex testing. Perhaps Treasury Board approval is delayed. Or PSPC's review process hit an unexpected snag. Whatever the reason, you need to document why the original timeline proved insufficient—the Procurement Ombudsman watches for these situations closely, as evidenced in their 2023 review (PR-2023-05) where they flagged a case requiring an extension after an amendment was issued too close to the bid closing date.

Key Considerations

• Three days isn't much notice. Bidders need time to consult with suppliers, review market conditions, and assess whether their pricing still makes sense. Be prepared for refusals, especially in volatile markets where commodity prices or exchange rates are shifting.

• Not all bidders may still be interested. Some may have already committed resources to other opportunities or may no longer have access to the same subcontractors or pricing. The longer the original evaluation dragged on, the more likely you'll face pushback.

• You can't cherry-pick who you ask. The extension request must go to all responsive bidders simultaneously. Playing favorites violates the fairness principles embedded in the Financial Administration Act and Treasury Board Contracting Policy.

• Document everything. Your file needs to show why the extension was necessary, when requests were sent, who responded, and how you decided to proceed. This isn't just good practice—it's what the Procurement Ombudsman will look for if there's a complaint.

Related Terms

Bid Validity Period, Responsive Bid, Contracting Authority, Bid Evaluation, Solicitation Amendment

Sources

• Standard Instructions—Goods or Services - Competitive Requirements 001 (2016-05-26)

• Supply Manual - Section 5.5 (Bid Evaluation)

• Procurement Practice Review PR-2023-05

The best approach? Build realistic timelines into your evaluation plan from the start. But when delays happen, request extensions early and communicate clearly with all bidders about why you need more time.