Bloomberg Law
Nov. 28, 2017, 8:19 PM UTC

Low-Ball Pricing Tarnished $7 Billion Freight Award, XPO Says

Daniel Seiden

XPO Logistics Worldwide Government Services told an appeals court that Crowley Logistics Inc. improperly received a $7 billion freight transport contract because the awarding defense agency didn’t adequately assess pricing ( XPO Logistics World Gov’t Servs. LLC v. United States , Fed. Cir., No. 17-2506, opening brief filed11/22/17).

The U.S. Transportation Command’s failure to consider Crowley’s expected usage rates, which erroneously caused the agency to believe that Crowley offered better pricing, demands vacating the award, XPO said.

The agency ignored Crowley’s “low-ball, unbalanced pricing” for services it wouldn’t likely order, and should have disqualified Crowley from the competition, XPO said. ...

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