That is total madness. There is no way that a licensed and legitimate contractor can do that much work for that kind of price. Your's was in-line with the norm. The contractor's "half-price" deal is too good to be true. There's problably a situation here where the "licensed competitor" just managed to figure out a way to get someone to obtain a permit for the job for them.
I don't think we say this.
The other "guy" may of bid low, and plans on upselling alot of extras.
He may be alot more organized, much quicker..ect
Just because the OP lost the job, doesn't automatically mean the other gent is unlicensed.