Comment Sounds like Somebody "Knows how game is played" (Score 4, Interesting) 92
I've seen a number of bids like this where one party comes in with a much higher bid with the expectation that they can be "negotiated" down, especially after pleading their case over an expensive dinner or a trip on a corporate jet to show off facilities/capabilities. The expectation is that they will win but get more money than if they had followed the rules of the bidding process.
It really comes down to somebody thinking they're smarter than everybody else in the room and that they understand the "actual rules".
Sometimes it works out for these people but just as often it doesn't - this sounds like one of those cases.