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  • Question

    Are contractors allowed to renege on the price negotiated after already providing the confirmation of negotiations in writing?


    Answer

    Until the contract is signed, the proposed costs are subject to revision...despite what appeared to be a conclusion to the negotiations. If this were a competitive procurement, the situation would be more complicated. However, for a sole source acquisition there is no concern for possible reaction from other offerors. The Government could reject the higher-priced quotes, but doing so may not be in the Government's best interest. The bottom line is that the Government wants to arrive at a fair and reasonable agreement, despite the fact that the updated quotes came in late.

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