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Below-cost Bid Was Not False Claims Violation Bids; Estimates

Wednesday, February 09, 2005 01:02 pm

Below-cost Bid Was Not False Claims Violation Bids; Estimates

A federal appeals court has ruled that a contractor did not violate the False Claims Act (FCA) by submitting a below-cost bid and reaffirming that bid price in the face of rising costs.

The U.S. Army Corps of Engineers solicited bids for construction of a dam in San Bernardino County, California. The bid schedule consisted of 150 line items of estimated quantities of work, each to be unit priced.

Odebrecht Contractors of California, Inc. submitted the low bid of approximately $167 million, about $29 million below the second low bid and $36 million below the Corps' cost estimate. Pending a protest by the sec [...]

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