not be allowable. Contingent offers may expose you to significant risk. Even if the Government accepts your fixed price offer, you may not have an opportunity to extinguish the contingency at the cost you assumed when you guaranteed the price to the Government, thus imperiling your profit from the contract.

If you are unable to offer products and services at defined prices and delivery schedules, a no–bid decision may be prudent. If you submit a contingent offer, understand that the Contracting Officer may not agree to your proposal price for the contingent event or may reject the offer due to uncertainty over the details of the resulting contract.

Tom Petruska, Owner
Contracts Unlimited, Incorporated

Do you need assistance with contingency bidding or other contracting issues?


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Footnotes:

1. FAR 31.205-7 (a).

2. Sun Edison, LLC, B-298583, October 30, 2006.

3. See Omega World Travel, Inc.; Sato/Travel Inc, B-288861, Aug. 21, 2002.

The foregoing is not legal advice nor is it a legal opinion. Please contact your attorney for legal advice.

 

 

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