//
you're reading...
ACQUISITION & CONTRACTING, Civilian, FEATURED ARTICLES, Op-Ed/Blog, Sponsor/Partner

GAO: Corrective Action Not Required to Price Realism for Fixed-Price Contract

As a general rule, an agency is only required to evaluate a fixed-price offer for reasonableness (that is, whether the price is too high). Agencies are not required to evaluate fixed-price offers for realism (that is, whether the price is too low) and, in fact, cannot do so unless the solicitation advises offerors that a realism evaluation will be conducted.

GAO recently reaffirmed this principle when it denied a protest challenging an agency’s refusal to consider the realism of offerors’ fixed prices as part of a corrective action, even though the agency suspected that at least one offeror’s price was unrealistically low.

Source: GAO: Corrective Action Not Required to Price Realism for Fixed-Price Contract – SmallGovCon

Discussion

One thought on “GAO: Corrective Action Not Required to Price Realism for Fixed-Price Contract

  1. Sadly, this is true. It opens up an enormous risk for performance.

    Like

    Posted by fedsavvy1 | February 6, 2017, 10:06

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: