Ann: Decmil Preferred For $175M WA Road Project, page-10

Spot on. Given their precarious financial position and track record of ugly disputes, it is reasonable to assume that the only way the client looked past all of those downside risks was that Decmil's price was well under the other bidders. I imagine the margin is more like negative 5%, and they'll take a punt on being able to lob in a lot of claims and bring the margin back up a bit.

I believe this is called "buying work" and it is no surprise that Dickie Decmil is using this 11th hour tactic.