P&L HW 4 - 09/18/07 Case 4: We-Can Can-U vs. Ahoy There...

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09/18/07 Case 4: We-Can Can-U vs. Ahoy There Inc. Background: Ahoy There Inc. is the primary contractor for the Navy’s Trident nuclear submarines and they subcontracted We-Can Can-U to make ballast cans for the submarines. Ballast cans are used for stability in these submarines when they are not carrying nuclear missiles. We-Can Can-U was awarded the contract because they were the lowest bidder, but Ahoy There Inc. was suspicious of their bid because it was about two million dollars lower than the next lowest bidder. Ahoy There Inc. contacted We-Can Can-U to verify that they included shipping and testing costs, but did not ask them to verify the entire bid. Ahoy There Inc. then went out and inspected We-Can Can-U’s facility to make sure that they could complete the job, but they found out that We-Can Can-U was a low responsible bidder meaning that they do not have the capacity to complete the job. Ahoy There Inc. did not tell We-Can Can-U that they inspected their facility or what they discovered. Summary of Facts:
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P&L HW 4 - 09/18/07 Case 4: We-Can Can-U vs. Ahoy There...

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