Bid withdrawal

Bid withdrawal is a bidder's decision to pull its bid out of a competition before the solicitation closing date and time. In Canadian federal practice, a bid can normally be modified, withdrawn or resubmitted before closing — but the request must be made in writing, and everything changes once the closing time passes.

What it is

PSPC's Supply Manual (section 4.95, "Modification and withdrawal of bids") states that bids, offers and arrangements "may normally be modified, withdrawn or resubmitted before the solicitation closing date if it is done in writing" — including electronically transmitted responses. A withdrawal request must reach the buyer's bid receiving unit before the closing time stated in the solicitation; a request that arrives after closing is not effective. The same section is explicit that a bid withdrawn after solicitation closing cannot be resubmitted.

Withdrawal is not the same as simply going quiet. A bid that stays in past closing is bound by the bid validity period: standard federal instructions require bids to remain open for acceptance for not less than 60 days from the closing date, and construction solicitations routinely state (for example, in a "BA04 Bid validity period" clause) that the bid shall not be withdrawn for 60 days following solicitation closing.

What it means for vendors

If you spot a fatal error in your pricing or realize you cannot meet a mandatory requirement, withdraw in writing before closing — then you may submit a fresh, corrected bid before the same deadline. Once bids have been opened, the buyer's options narrow: PSPC policy says a bid submitted with bid security may be withdrawn without compensation to Canada only if there is a significant error on the face of the bid, and that determination requires approval at the director level. For any other withdrawal reason, Legal Services must be consulted. See our page on withdrawing after closing and forfeiting bid security for what happens if you walk away post-closing.

Common questions

Can I resubmit a withdrawn bid?

Before closing, yes — the Supply Manual treats withdrawal as part of the normal modify-and-resubmit cycle before the solicitation closing date. After closing, no: a bid withdrawn after solicitation closing cannot be resubmitted.

Do I have to explain why I am withdrawing?

Before closing, no reason is required — a written notice received before the deadline is effective on its own. After closing, the reason matters a great deal, because only a significant error on the face of the bid (with director-level approval) allows a penalty-free exit.

Does withdrawing before closing cost anything?

There is no federal policy mechanism to penalize a pre-closing withdrawal, and your bid security is released as it would be for any non-participating bidder. The real cost is commercial: you lose the opportunity, and repeated withdrawals can damage your standing with a buyer.

Related definitions

Irrevocable offer / offer validity period · Withdrawal after closing and bid forfeit · Bid security · Bid deposit