Dealing with a Late Bid Submittal

How should public agencies handle a bid that is submitted past the published bid submittal deadline? Here are a couple of principles and things to keep in mind:

1. Use a Time Stamp Clock: Have an electronic time clock that you use for date and time stamping in the receipt of bids. If the time clock displays and prints a time including seconds, and the bidding documents state that bids will be received until 2:00 p.m., a bid would be considered late if it was stamped in at 2:00:01 p.m. If, however, the time clock does not display and print seconds, a bid received and stamped in at 2:00 p.m. would still be on time. It would be late once the time clock read 2:01 p.m.
   
   
2. Validate Official Time: On the bid submittal day, validate that the time on the time clock is accurate. Use the website maintained jointly by the U.S. Department of Commerce's National Institute of Standards and Technology (NIST) and its military counterpart, the U.S. Naval Observatory (USNO). The website address is: http://www.time.gov/
   
   
3. Post a Sign Designating Official Clock: Have a sign notifying bidders that the time clock is the official time for receipt of bids and not a wall clock or other clock in the office.
   
   
4. Have Clear Language in Bidding Documents: Make sure the language in your bidding documents is clear as to the deadline.
   
   
5. Do Not Accept or Read Late Bids: If a bid is received after the deadline, it should not be accepted by the public agency. The public agency should receive it only to stamp it, make a photocopy of the time stamp and outside of the bid envelope and immediately return the document unopened to the bidder. The bid should not be opened or read. Sometimes, a bidder may, however, refuse to accept the bid back, in which case it is best not to get into an argument about it. The public agency should then take the bid, verbally tell the bidder that the bid is non-responsive and will not be opened or considered, not open it, and immediately return it by certified mail, return receipt requested, to the bidder with a letter explaining that the bid was received past the deadline. I once had an upset bidder literally throw a late bid over the bid counter at my staff who had returned it to the bidder. So, remember to duck!

There are many other important issues and situations to consider when managing the bid receipt and opening process. If you are interested in an audit of your agency's bid receipt and opening practices or would like training on this subject, please contact me to discuss how I might provide assistance to you in this important area.