ADOT WARNING RE: UNBALANCED BIDS

By Kent Berk on February 8th, 2009 in BLOG

The Arizona Department of Transportation has issued a warning that “materially unbalanced” bids may be rejected. Pursuant to Section 102.10 of the Department’s 2008 Standard Specifications, it may reject “irregular proposals.” Irregular bids include those that are “mathematically unbalanced” or “materially unbalanced.” A Materially Unbalanced Bid means ” A bid that generates a reasonable doubt that award to the bidder submitting a mathematically unbalanced bid will result in the lowest ultimate cost to the Department.” A Mathematically Unbalanced Bid means “A bid containing lump sum or unit bid prices that do not reflect reasonably anticipated actual costs plus a reasonable proportionate share of the bidder’s anticipated profit, overhead costs, and other indirect costs.” Unbalanced bids are detrimental to the Department and may be rejected.