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Request for Price Adjustment When Contractor Was Sole Bidder

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Highlights

A contractor contended that a mistake in bid had occurred or that the terms of the contract had become unconscionable and requested relief from cost escalation since contract award. Although the sole bid received was in excess of the Government cost estimate, the contracting officer was not on notice as to the possibility of a mistake alleged after award. Since the allegation was that completion of a contract in an alternative manner would cost the contractor about 33 percent more than the award price, the contract was enforceable and not unconscionable. The price of a fixed-price contract without a price adjustment clause may not be increased because of inflation.

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Kenneth E. Patton
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Edward (Ed) Goldstein
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