Irrevocable offer / offer validity period

An irrevocable offer is a bid the bidder commits cannot be withdrawn for a stated period after closing. In Canadian federal solicitations, the "Validity of Offers" clause requires offers to remain open for acceptance for a minimum period — typically not less than 60 calendar days from the closing date — so the buyer can evaluate and award without bidders pulling out mid-process.

What it is

Federal bid solicitations on CanadaBuys include a standard clause stating that offers will remain open for acceptance for a period of not less than 60 calendar days from the solicitation closing date, unless specified otherwise in the solicitation. The same clause gives Canada the right to seek a written extension from all compliant offerors at least three calendar days before the end of the validity period; if all compliant offerors agree to extend, evaluation continues. By submitting a bid, the offeror accepts that its price and terms are held open — that is what makes the offer irrevocable in practice.

Why buyers require it

Evaluation takes time. On a complex solicitation, technical scoring, security screening and financial analysis can run weeks past closing. Without an irrevocability commitment, a bidder could withdraw its price the day after closing to escape a mistake or to reprice, leaving the buyer with a broken competition. The validity period pairs with bid security requirements: where a bid deposit or surety bond is demanded, its purpose is to back the same commitment with money.

What it means for vendors

Price your bid for the full validity period, not just for closing day. If your quoted materials pricing, labour rates or foreign exchange assumptions expire before the validity period ends, that risk is yours once you submit. If the buyer asks for an extension, you can decline — but on federal solicitations the extension is sought from all compliant offerors together, and refusing can end your chances in that process. Before submitting, check the validity period stated in the specific solicitation rather than assuming 60 days, since the clause allows the buyer to specify something different.

Common questions

Can I withdraw my bid during the validity period?

Generally no — that is the point of irrevocability. Under the Contract A doctrine from the Ron Engineering decision, a compliant bid forms a binding process contract with irrevocability as its principal term. Withdrawal attempts can cost you your bid security and expose you to claims.

What happens when the validity period expires?

If the buyer has not accepted your offer and has not obtained a valid extension in writing before expiry, your offer lapses and you are free of it. A purported award after expiry without an agreed extension is vulnerable.

Related definitions

BAFO · Bid deposit · Contract A / Contract B · Standing offer