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Govt. Must Explain Whya Too-low Price Is Too Risky

Tuesday, July 05, 2011 07:43 am


Sustained: Bid Price

Matter of: A1 Procurement, JVG, 2011 Comp. Gen. B- 404618 Lexis 46 (Mar. 14, 2011)

The Comptroller General recommended the government reevaluate a bid it rejected because its price was so low as to present "a significant risk to performance."

A1 Procurement, JVG (A1) bid on a fixed-price, ground maintenance contract with the Department of Veteran Affairs (VA) but lost out when the government determined the contractor's price was significantly below the government cost estimate (GCE) and other bidders' prices. Before awarding a fixed-price contract, an agency must determine that the o [...]

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