• Unbalanced Bids

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 (Accumark, B-310814). Below-cost pricing is not prohibited and the government cannot withhold an award merely because its low offer is or may be below costs (JV Penauille/BMAR, B-311200). Evan a contract subject to the Service Contract Act may propose below SCA costs (Group Multimedia, B-310716), agency may accept a proposal characterized by protester as “unreasonably low” (Global Solut Network, B-298682) or attempting to buy in is not illegal (Femme). However, it is improper for an agency to accept risk presented by offeror’s unrealistically low labor rates (MCT JV, B311245) or an agency may assess an offer as unrealistically low where it assesses the risk in the offeror’s approach (Guam Shipyard, B-311321)

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