48 C.F.R. § 3.501-1

3.501-1 Definition.

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Buying-in as used in this section, means submitting an offer below anticipated costs, expecting to—

(1) Increase the contract amount after award (e.g., through unnecessary or excessively priced change orders); or

(2) Receive follow-on contracts at artificially high prices to recover losses incurred on the buy-in contract.

[48 FR 42108, Sept. 19, 1983, as amended at 66 FR 2127, Jan. 10, 2001]
Notes of Decisions
Cited in 1 case, 2004–2004 · leading case: First Enterprise v. United States
First Enterprise v. United States (2004) uscfc “48 C.F.R. § 3.501-1 (2004). The contracting officer must ensure that the contractor does not recover buying-in losses.”
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