Common use of Unbalanced Clause in Contracts

Unbalanced. Bid a. An unbalanced bid is defined as either mathematically unbalanced or materially unbalanced. A mathematically unbalanced bid is one containing lump sum or unit bid items which do not reflect reasonable actual costs plus a reasonable proportionate share of the bidder's anticipated profit, overhead costs, and other indirect costs, which he/she anticipates for the performance of the items in question. A bid is materially unbalanced if there is a reasonable doubt that award to the bidder that submitted a mathematically unbalanced bid will result in the lowest ultimate cost to the Government. b. All bids are subject to review for prices that are either in excess of or below the reasonable cost as compared to the Department’s estimate and historical prices kept for related services by the Department. The submittal of an unbalanced bid may result in the rejection of the Contractor’s bid. If the low bid proposal is determined to be materially unbalanced to the potential detriment of the Department, it will be considered irregular and will be rejected as nonresponsive.