- (a) Generally. To protect the integrity of the competitive procurement process and to assure fair treatment of offerors, the Office of the Arkansas Lottery shall carefully consider whether to permit waiver or correction for mistakes.
(b) The office’s treatment of mistakes.
- (1) The office shall not allow an offeror to correct or withdraw an offer for an error of judgment.
(2) If the office discovers certain mistakes in an offer after closing, but before award of the contract, the office may take the following action:
- (A) Minor informality.
(i) The office may waive or permit an offeror to correct a minor informality.
(ii) A minor informality is a matter of form rather than substance when it is evident on the face of the offer, or an insignificant mistake that can be waived or corrected without prejudice to other offerors.
- (iii) Examples of minor informalities include, but are not limited to, an offeror's failure to:
- (a) (a) Return the correct number of signed offers or the correct number of other documents required by the solicitation document;
(b) (b) Sign the offer in the designated block, provided a signature appears elsewhere in the offer, evidencing an intent to be bound; and
- (c) (c) Acknowledge receipt of an addendum to the solicitation document, provided that it is clear on the face of the offer that:
- (1) (1) The offeror received the addendum and intended to be bound by its terms; or
(2) (2) The addendum involved did not affect:
- (A) (A) Price;
- (B) (B) Quality; or
- (C) (C) Delivery;
(B) Clerical error.
- (i) The office may correct a clerical error if the error is evident on the face of the offer or other documents submitted with the offer, and the offeror confirms the office’s correction in writing.
- (ii) A clerical error is an offeror’s error in transcribing its offer.
- (iii) Examples include:
- (a) (a) Typographical mistakes;
(b) (b) Errors in extending unit prices;
(c) (c) Transposition errors;
- (d) (d) Arithmetical errors; and
(e) (e) Instances in which the intended correct unit or amount is evident by simple arithmetic calculations.
(iv) In the event of a discrepancy, unit prices shall prevail over extended prices;
(C) Burden of proof. The office may permit an offeror to withdraw an offer based on one (1) or more clerical errors in the offer only if the offeror shows with objective proof and by clear and convincing evidence:
- (i) The nature of the error;
- (ii) That the error is not a minor informality under this subsection or an error of judgment;
- (iii) That the error cannot be corrected or waived under this subsection;
- (iv) That the offeror acted in good faith in submitting an offer that contained the claimed error and in claiming that alleged error in the offer exists;
- (v) That the offeror acted without gross negligence in submitting an offer that contained a claimed error;
- (vi) That the offeror will suffer substantial detriment if the office does not grant the offeror permission to withdraw the offer;
- (vii) That the office’s status has not changed so significantly that relief from the forfeiture will work a substantial hardship on the office; and
- (viii) That the offeror promptly gave notice of the claimed error to the office; and
(D) Withdrawing offers after closing.
- (i) The criteria in 23 CAR § 372-207(c) shall determine whether the office will permit an offeror to withdraw its offer after closing.
- (ii) This criteria also shall apply to the question of whether the office will permit an offeror to withdraw without forfeiture of its bid bond, or other bid or proposal security, or without liability to the office based on the difference between the amount of the offeror's offer and the amount of the contract actually awarded by the office, whether by award to the next lowest responsive and responsible offeror, the most advantageous and responsible offeror, or by resort to a new solicitation.
- (c) Rejection for mistakes. The office shall reject an offer in which a mistake is evident on the face of the offer and the intended correct offer is not evident or cannot be substantiated from documents submitted with the offer.
- (d) Identification of mistakes after award.
- (1) The procedures and criteria set forth above are an offeror’s only opportunity to correct mistakes or withdraw offers because of a mistake.
- (2) Following award, an offeror is bound by its offer, and may only withdraw its offer or rescind a contract entered into pursuant to the extent permitted by this part and applicable law.