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”.