What happens if a bid declaration to BPP is false?

BPP's false declaration sanction for bidders: a false statement in a bid brings prosecution, debarment and disqualification from public procurement for 10 years. Here is what the affidavit covers, and what the Act adds on top.

3 min readBy the Docufy editorial team

Quick answer

Every bid carries an affidavit disclosing any link between the bidder and officials of the procuring entity or BPP. BPP cites section 58 of the Public Procurement Act 2007 as the basis for prosecution, debarment and disqualification from public procurement for 10 years where a declaration turns out to be false. The Act itself also sets a fine and a minimum debarment period on conviction.

The affidavit covers
an affidavit disclosing any link between the bidder and officials of the procuring entity or BPP
BPP's stated sanction
prosecution, debarment and disqualification from public procurement for 10 years
Law cited
Public Procurement Act 2007, section 58
Applies to
every bid submitted through the procurement process
On this page

A bid is not just a set of documents and certificates. Part of it is a sworn statement, and BPP treats a false one seriously.

What every bid affidavit covers

Alongside the certificates a tender pack asks for, a bidder swears an affidavit disclosing any link between the bidder and officials of the procuring entity or BPP. This affidavit also confirms that everything else in the bid is true and correct.

It is easy to treat this as a small, routine step. It is not. It turns the whole bid into a sworn set of claims, not just a form you fill in and send off.

The sanction BPP cites

BPP's own guidance points to section 58 of Public Procurement Act 2007 as the basis for prosecution, debarment and disqualification from public procurement for 10 years where a declaration turns out to be false.

That is a serious outcome for what might start as a single inaccurate line in a bid document, whether the inaccuracy was deliberate or simply careless.

What the Act itself adds

Section 58(6) of the Act goes further than BPP's own summary. On conviction, a company faces two things at once. First, it is barred from public contracts for a set number of years. Second, it pays a fine worked out as a share of the contract's value.

Reading BPP's summary next to the Act itself gives you the fuller picture. Neither one alone tells the whole story.

Other rules elsewhere in the Act

A separate part of Public Procurement Act 2007 stops a bidder from submitting at all if that firm is in receivership, or is otherwise insolvent. In plain terms: a company in financial trouble of that kind cannot bid, whatever else its paperwork says.

Put together, the affidavit, the false-declaration rule and this solvency check all serve one goal. They keep bids honest, and they keep unstable firms out of public contracts.

A bidder who has not checked its own company status lately should do so before signing anything.

Staying on the right side of this

  1. Read the affidavit fully before signing it, rather than treating it as routine paperwork.
  2. Check every figure and disclosure in the bid against your company's actual records.
  3. Disclose any link between your business and officials of the procuring entity or BPP, rather than assuming it is irrelevant.
  4. Confirm your company's solvency status before you submit.

Common mistakes

  • Signing the affidavit without reading exactly what it discloses and confirms.
  • Assuming a small inaccuracy in a bid document will not be treated as a false declaration.
  • Leaving a link to an official undisclosed because it seems minor.
  • Submitting a bid without checking the company's own insolvency or receivership status first.

For the registration this affidavit sits alongside, see how to register as a BPP contractor, and for whether your business needs ITF compliance for the same bid, does a tender bidder need an ITF certificate. The tender compliance certificates checklist covers the rest of what a federal bid pack usually needs.

Questions people ask

What must the bid affidavit actually disclose?

An affidavit disclosing any link between the bidder and officials of the procuring entity or BPP. It must also confirm that everything in the bid is true and correct.

What does BPP say happens if a declaration is false?

BPP cites section 58 of Public Procurement Act 2007 as grounds for prosecution, debarment and disqualification from public procurement for 10 years.

Does the Act itself set out a specific penalty?

Yes. Section 58(6) sets a minimum multi-year debarment period, plus a fine calculated as a share of the procurement's value, for a company convicted under it.

Can a bidder in receivership still submit a bid?

No. The Act separately bars a bidder that is in receivership or insolvency from submitting, alongside the affidavit and false declaration provisions.

Sources

Last checked 27 Sep 2026. Fees and rules change; the agency that issues the document has the final word. See our editorial policy.

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