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Key Case Law Rules for Government Contract Formation by Patrick Butler

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CHAPTER 5Protest Grounds Based on Pricing Issues

1. BUYING-IN OR BELOW-COST PRICES

Overview of This Protest Ground: This protest ground is triggered when a disappointed offeror learns of the awardee’s proposed price and argues that it is artificially low. Typically the disappointed offeror will note a significant price disparity between its price and the awardee’s price once the award is announced. The disappointed offeror generally alleges that there is no conceivable way that the awardee can perform the work responsibly for the proposed price. Protesters essentially argue that the proposed price was merely a ruse by the awardee to “buy in” ...

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