mrpeeng t1_j7l5gqg wrote

My old company did this for various gov. inspection jobs. They'd undercut the bids just to win them for the cash flow to pay for other higher paying jobs. Gov. payment was always reliable so that kept the business running when it was slow. When they lost a job to some one else due to a lower bid, they'd have them audited to see how it was possible and fight it. There are a bunch of stupid rules that inflate the bids though like some jobs had requirement where you HAVE to use a company that is women owned for 20% of your supplies. You find them and they ALL charge 200% the normal rate of something like a ream of paper.