What is one key factor that might lead to unbalanced pricing scenarios?

One key factor that might lead to unbalanced pricing scenarios is when the base year is priced significantly higher than the options. This situation can create an imbalance because contractors may deliberately underprice the option years while inflating the price of the base year to maximize profit in the initial stages of the contract. It suggests a strategy to make the proposal more competitive upfront, while possibly anticipating that the government will ultimately continue the project based on favorable conditions established during the initial contract period.

On the other hand, pricing all line items equally could indicate a more straightforward and transparent approach that minimizes the risk of unbalanced pricing, as it reflects consistency across the pricing structure. High contract completion rates might suggest that previously awarded contracts were manageable and successful, but they do not directly contribute to instances of unbalanced pricing. Strong financial backing from investors may provide a contractor with the resources to bid competitively but does not inherently lead to unbalanced pricing scenarios.