A bid is unbalanced if it is based on prices significantly less than cost for some work and significantly overstated for other work and there is some reason to doubt the bid will result in the lowest overall cost. An agency may accept an unbalanced bid provided it has concluded the pricing does not pose an unacceptable risk and the price to be paid is not likely to be unreasonably high (HMR Tech. B-295968). Below-cost pricing is not prohibited and the government cannot withhold an award from a responsible bidder merely because the low offer is or maybe below cost (York Building Services, B-296498 and PHT Corp. B-297313). Another case ruled that a below cost price or an attempted buy-in does not make an offeror ineligible for award (Ben-Mar Enterprises, B-295781). However, a contractor was properly eliminated from competition when the agency determined that there was a risk of poor performance when a contractor is forced to perform on a contract at little or no profit under a fixed-price contract (International Outsourcing Services, B-295959).

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