Austin, TX asked in Business Law, Contracts and Government Contracts for California

Q: Won a Federal Government Purchase Order, Manufacturer not honoring their price quote they had provided us with initially

Hello, my firm won a Federal Government Purchase Order roughly $9k based on an initial quote received from a distributor of the goods who were in turn quoted by the manufacturer. Now that I have the PO on hand, manufacturer is not releasing the order because they are saying that they quoted the wrong part # and the correct part #'s price is double the price of what we were quoted. I have been talking to both the distributor and the manufacturer to tackle this but has had no positive outcome. All I have been offered by the manufacturer is that they will sell to me direct for $14k which would mean I'll have to take a loss of $5k to be able to fill the order. On the other hand, if I go to back to my Government Contracting Officer and ask to terminate the contract, my firm will get a bad rating and may not be considered for any future potential business opportunities. What is my course of action please if you can give me some tips. Thanks for your response in advance!

1 Lawyer Answer
Bruce Alexander Minnick
Bruce Alexander Minnick
Answered

A: Free practical advice offered for the last 41 years to people starting or operating small businesses:

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Robert Philip Cogan agrees with this answer

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