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#1 Fan of Guest Vern Edwards

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Everything posted by #1 Fan of Guest Vern Edwards

  1. Thank you both for pointing out that FAR reference and for the advice on forms, it's very helpful!
  2. The contractor stated over email that they would like to be relieved from the contract or allowed to resubmit a revised quote and provided more money. @ji20874 I agree and believe my contracting officer is on the same page with you about not wanting to forfeit the leverage and first consider our case for T4D in this situation. @joel hoffman I am eager to take lessons learned from this situation as most of my work now is small dollar construction. Is there an alternative to obtaining quotes for construction projects under the SAT? Also, I recently read the thread at FAR 13.106-2 - Discussions and am curious if this is what you mean by "simple process available to clarify or to bargain" with industry to come to a mutual understanding before entering into a small project. ... Thank you all for the references, lessons learned, and possible solutions; it has really helped my research. I do appreciate your time and thoughts. As suggested, the discussion will be continued further with legal and the Contracting Officer to develop the best solution for the government.
  3. @joel hoffman the magnitude of construction was between $100,000 and $250,000. Yes, I should have mentioned Part 36, this is for construction work procured using SAP - other than commercial. No performance bond was required, only an alternative form of payment protection (payment bond submitted). The awardee's quote was considerably less than the government estimate and the responsive next in line quote is considerably higher than the government estimate.
  4. Both parties signed the SF1442. No work was performed. The "mistake" appears to have arose from patent ambiguity in the specifications (as the subcontractor brought it up to the prime without any Government knowledge or input). The contractor refuses to perform the work at the agreed upon price. I agree with you and others that the no-cost cancellation approach would be gracious and less painful for both parties. Regarding the next in line: the price offered is considerably higher than the IGE. C Culham, I hadn't considered this before...performance hasn't begun, but would the submission of a payment bond, certificate of insurance, and construction schedule constitute a form of written acceptance? This contract was passed off to me just after award, so inquiring to see if any other written form of acceptance was received.
  5. I am an agreement with your statement jj2084. Unfortunately, the next in line is considerably higher in price so it's looking like back to the drawing board. Yes, when reading through GAO cases it appears that this is the case. Typically it seems the contractor must show evidence that what they intended to bid was not what they actually bid; which is not the case in this scenario. A follow-up question...understanding that performance of the contract never actually began (NTP issued but no mobilization), if a no cost cancellation is accepted by the contractor, is it possible/appropriate to document the poor planning and subcontract management of the contractor in PPIRS or something? In order to properly caution other agencies? Thank you all for your responses so far!
  6. You're right! Thanks. Is failing to do your due diligence as a prime contractor a "mistake" or simply negligence?
  7. Awarded on the basis of LPTA with evaluation procedures in accordance with FAR 13.106-2 and 15.101-2. No, only a form of alternate payment protection. This I believe to be true. Instead, the contractor is only just now asking all these questions after award and after his subk realized his mistake and upped his price.
  8. New to construction contracting and interested to received advice/options for how to proceed in the following situation. Context: Construction contract competitively awarded using FAR 13 and FAR 15 procedures; LPTA. Awardee submitted the lowest priced quote, lower also than the IGE. Prior to award, the KO asked the contractor to verify and confirm that his price was valid and that the firm (and subs) could deliver the requirements under the solicitation for a FFP. The contractor held that his price was unchanged. The contract is awarded; everyone signs and everyone is happy. After the pre-con and about a month before performance is to begin, the contractor emails explaining that he made a mistake and realized he quoted too low. Long story short (through many emails and calls), we learn that the prime contractor relied upon the pricing of a subcontractor whose price was very low and, come to find out, based on a misunderstanding of the specifications. The prime did not do his due diligence to question the sub or review the specs; even though he admitted receiving two other much higher quotes from other potential subs. After award, the subcontractor pulled out and increased his price to the prime. The prime at that moment realizes that his quote was based on a misunderstanding of the specs. The prime now claims that our specs are flawed/ambiguous and he cannot perform at the quoted price; wants the Government to mod the contract to increase the price. A T4D is being considered. Also looking at FAR 14.407-4 “Mistakes After Award” for some kind of guidance, but it doesn’t really apply since this was not sealed bidding and not sure if what happened can truly be classified as a “mistake”.
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