February 23, 2004

CONTRACTOR ENTITLED TO UNBALANCED UNIT PRICES

Armed Services Board of Contract Appeals

Rio Construction (Rio) was low bidder at $10,555,240 on a flood control project for the US Army Corp of Engineers (Corp) in Barceloneta, Puerto Rico. Included were three bid items for fill requirements totaling 888 cubic meters. The three items represented three different sources, 166,000 from excavations, 266,000 from an on-site borrow area and 456,000 from a commercial quarry. Rio’s prices were $3.40, $6.60 and $4.80 respectively. This appeal arises when Rio found it unecessary to use the commercial quarry and the Corp demanded a price negotiation on the basis of an unbalanced bid.

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