XL EagleUnbalanced Pricing
Unbalanced Pricing. Unbalanced pricing happens when line items are priced far above or below their real cost, even if the total looks fine. A common example is loading cost into the base year or early items so you get paid sooner.
The government must review offers for unbalanced pricing. If it creates unacceptable risk, the offer can be rejected.
Why it matters to a small contractor
Keep line items tied to real costs. Front-loading a base year or underpricing optional items might look smart, but it can get your bid tossed.
Example
A bidder prices mobilization at $60,000 on a $200,000 job where real mobilization costs $8,000. The agency flags the bid as unbalanced.
Unbalanced Pricing: common questions
Is unbalanced pricing illegal?
Not by itself. It is a risk the government weighs, and it can lead to rejection when the risk is too high.
Can option year prices be lower than the base year?
They can, if justified. Drops that do not make sense may look unbalanced.
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