Bid Rectification

Bid rectification is the formal, post-closing process by which a procuring organization, following explicit solicitation provisions, invites bidders to correct compliance deficiencies or supply missing information in their bids. It works within limits that protect the integrity of the competition, so a correction cannot change the substance of a bid or give one bidder an unfair advantage.

Rectification is a controlled exception to the "no bid repair" rule. Under Canadian tendering law, a bid is generally judged as it stood at closing, and substantive changes afterwards are prohibited as bid repair. Rectification exists only where the solicitation itself authorizes it. In Canadian federal procurement, its clearest form is the phased bid compliance process run by Public Services and Procurement Canada (PSPC).

How rectification differs from bid repair and clarification

Bid repair is the improper alteration or modification of a bid, by the bidder or the buyer, after the bid deadline has passed. Courts and tribunals treat it as a breach of the bidding contract (known as Contract A) and a threat to fair and transparent competition.

Clarification is narrower than rectification. It lets a buyer ask for limited information to understand a bid as submitted, such as where a piece of information is located. It does not normally allow a bidder to change its bid or provide entirely new information.

Rectification sits between the two. It goes further than clarification because bidders may submit additional or different information to fix an identified non-compliance. It stops short of bid repair because the solicitation defines what can be fixed and when. Tribunal decisions have held that a rectification process must be applied even-handedly and that information gathered during rectification cannot be used for scoring unless the solicitation allows it.

How PSPC's phased bid compliance process works

PSPC's phased bid compliance process gives bidders a chance, after the closing date, to provide missing financial bid information and to correct a finding of non-compliance with Eligible Mandatory Requirements. These are mandatory requirements whose compliance can be assessed shortly after closing. The PSPC phased bid page describes the approach as part of its effort to simplify procurement.

The evaluation runs in three phases:

• Phase 1: the buyer checks that the bid contains the required financial information. If something is missing, the bidder is notified and given a set timeframe to provide it. Bidders who do not are eliminated.
• Phase 2: the buyer assesses the Eligible Mandatory Requirements. A bidder that falls short receives a Compliance Assessment Report and a timeframe to respond with documentation that achieves compliance.
• Phase 3: the buyer completes the full evaluation of the bids that remain.

PSPC's targeted review of the process found that, in the procurements it sampled, applying the process helped retain 42% more suppliers in the competition.

When PSPC includes phased bid compliance

Under PSPC policy, the process can be built into requests for proposals and requests for standing offers. It must be included when the estimated value exceeds $2,000,000 and at least one of these factors is present, as set out in the PSPC targeted review:

• the requirement is complicated;
• four or fewer bids are anticipated;
• the Industrial and Technological Benefits Policy is applied;
• a socio-economic criterion is rated with a mandatory minimum threshold score;
• the work involves significant innovation;
• a mandatory requirement is unfamiliar to industry; or
• the procurement falls under a Comprehensive Land Claim Agreement and has a rated requirement with a mandatory minimum threshold score.

A PSPC director or above may decide not to include the process when these factors are met, or to include it when they are not, as long as the justification is documented in the procurement file. Buyer guidance on CanadaBuys tells buyers to list in the solicitation the financial requirements and eligible mandatory requirements that the process will cover.

Rectification-style rules in NATO procurement

NATO's procedure for competitive procurement does not use the term "bid rectification", but it permits similar controlled corrections. Procurement authorities may ask vendors to complete or correct incomplete, erroneous or missing information within a set timeframe, provided the request respects open and fair competition, non-discrimination and transparency. Bidders may also fix minor clerical or administrative errors after the deadline if the fix does not change the substance of the bid or affect pricing or competitive position, and all corrections must be documented. Alterations after the final deadline that affect pricing or technical specifications remain prohibited.

What bid rectification means for suppliers

Rectification is not a general right to fix a bid. Check each solicitation to see whether it includes a rectification or phased compliance process, which requirements it covers and what deadlines apply. Where a process exists, respond to any notice within the stated timeframe, because missing it ends your bid. Still submit a complete, compliant bid at closing. Rectification cannot be used to change pricing beyond what the solicitation allows, improve a score or add new substance to a proposal.