You work for the contractor building project. You released the subcontract propo

Question

You work for the contractor building project. You released the subcontract proposal for the electrical work on the project. After the bids were submitted, you noticed some of the bids submitted radical price differences that you think are unbalanced bids. These unbalanced bids most likely are a sign of :

a. the engineer or architect making an error in preparing the plans and specifications that was noticed by the contractors

b. bad information given from the vender on some of the products associated with the innovation center.

c. the contractor making an error in preparing the bid

d. the use of poor engineer's estimates

Explanation / Answer

Unbalanced bids are of two types - mathematically unbalanced and materially unbalanced. An unbalanced bid may be only mathematically unbalanced or the bid may be mathematically and materially unbalanced. A mathematically unbalanced bid is one containing lump sum or unit bid items which do not reflect reasonable actual costs plus a reasonable proportionate share of the bidder's anticipated profit, overhead costs, and other indirect costs, which he/she anticipates for the performance of the items in question. A bid is materially unbalanced if there is a reasonable doubt that award to the bidder submitting the mathematically unbalanced bid will result in the lowest ultimate cost to the Government. Consequently, a materially unbalanced bid may not be accepted. To determine whether a bid is unbalanced, it needs to be evaluated for reasonable conformance with the engineer's estimate. There are no specific parameters, such as amount or percent of variance from the engineer's estimate, that constitute an unbalanced bid. However, any evaluation process should undertake to determine why the bid is unbalanced, what effect the unbalancing will have on the contract. The unbalanced bids most likely are a sign of the use of poor engineer's estimate.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.