Buying-In Law and Legal Definition
According to 48 CFR 3.501-1 (Title 48 - Federal Acquisition Regulations System; Chapter 1 - Federal Acquisition Regulation; Subchapter A – General; Part 3 - Improper Business Practices And Personal Conflicts Of Interest; Subpart 3.5 - Other Improper Business Practices), buying-in 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.”
