Certified Federal Contract Manager (CFCM) Practice Exam 2025 – Complete Study Resource

Rejecting a bid is generally justified by certain criteria to ensure fairness and adherence to regulations in the procurement process. A bid may be rejected for several valid reasons, including timeliness, compliance with licensing requirements, and adherence to budget limits.

In the case of apparent clerical mistakes, these can often be corrected rather than being grounds for outright rejection. For instance, if a bid contains an error that is clearly typographical and does not materially affect the bid, the contracting officer may choose to clarify and amend the bid instead of rejecting it. Thus, since clerical mistakes can often be rectified through clarification processes, it is not considered a valid reason for rejecting a bid outright.

The other options present clear and justifiable grounds for bid rejection: a late bid disrupts the competitive bid process and may disadvantage other bidders; lack of required licenses indicates non-compliance with legal requirements imposed on bidders; and exceeding budget limits signals that the bid is not feasible within the approved financial constraints. Each of these reasons aligns with maintaining the integrity and competitiveness of the procurement process.