What risk does unbalanced pricing present to the Government?

Unbalanced pricing presents a significant risk to the Government primarily because it can lead to inflated costs in the future. This occurs when a contractor structures their bid in such a way that certain line items are priced significantly higher than their actual costs, while others may be priced lower. If the government accepts such a bid, they may end up overpaying for later phases of the project when the inflated prices come into play, which can escalate overall contract costs.

Additionally, unbalanced pricing can create a scenario where a contractor might prioritize certain elements of the work that maximize their profit instead of focusing on the overall project delivery. This misalignment in incentives could lead to delays or the Government not receiving the best value for their expenditure. It highlights the importance of properly evaluating bids to ensure that all pricing is balanced and reflective of realistic costs to avoid potential future financial burdens.