Common use of UNBALANCED PRICING Clause in Contracts

UNBALANCED PRICING. A. Unbalanced pricing may increase performance risk and could result in payment of unreasonably high prices. Unbalanced pricing exists when, despite an acceptable total evaluated price, the price of one or more contract line items is significantly over or understated as indicated by the application of cost or price analysis techniques. The greatest risk associated with unbalanced pricing occur when – 1. Startup work and mobilization are separate line items; 2. Base year quantities and option year quantities are separate line items ; or 3. The evaluated price is the aggregate of estimated quantities to be ordered under separate line items of an indefinite-delivery contract. B. All offers with separately priced line items or subline items shall be analyzed to determine if the prices are unbalanced. If cost or price analysis techniques indicate that an offer is unbalanced, the Manager Procurement Division shall: 1. Consider the risks to the County associated with the unbalanced pricing in determining the competitive range and in making the award decision; and 2. Consider whether award of the contract will result in paying unreasonably high prices for contract performance. 3. An offer may be rejected if the manager determines that the lack of balance poses an unacceptable risk to the County

UNBALANCED PRICING. A. Unbalanced pricing may increase performance risk and could result in payment of unreasonably high prices. Unbalanced pricing exists when, despite an acceptable total evaluated price, the price of one or more contract line items is significantly over or understated as indicated by the application of cost or price analysis techniques. The greatest risk associated with unbalanced pricing occur when – 1. Startup work and mobilization are separate line items; 2. Base year quantities and option year quantities are separate line items ; or 3. The evaluated price is the aggregate of estimated quantities to be ordered under separate line items of an indefinite-delivery contract. B. All offers with separately priced line items or subline items shall be analyzed to determine if the prices are unbalanced. If cost or price analysis techniques indicate that an offer is unbalanced, the Manager Procurement Division shall: 1. Consider the risks to the County associated with the unbalanced pricing in determining the competitive range and in making the award decision; and 2. Consider whether award of the contract will result in paying unreasonably high prices for contract performance. 3. An offer may be rejected if the manager determines that the lack of balance poses an unacceptable risk to the County.