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 acceptance of a proposal with unbalanced pricing is not, in itself, improper provided the agency has concluded that the pricing does not impose an unacceptable risk and the prices the agency is likely to pay is not unreasonably high (Tessa Structures, B-298835). Below-cost pricing is not prohibited and the government cannot withhold an award merely because its low offer is or may be below costs (Advanced Technology Systems, B-296493). A below-cost bid is permissible because contract payment will be based on the offered price (Sealift, Inc. B-298588).

Also the fact that an offer may not include profit or may be an attempted buy-in does not, in itself, render an otherwise responsible firm ineligible for award (CC Distributors v. US, 69 Fel. Cl. 277). However, an agency may properly eliminate a bidder if the agency makes a judgment that there is a risk of poor performance if a contractor is forced to provide services at little or no profit under a fixed-price contract (Outsourcing Services, B-295959).

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