Protest of Surplus Sale Contract Cancellation

Charlie Driesbock Machine Tools protested the cancellation of a contract for the purchase of a horizontal boring machine on Guam, from the Defense Property Disposal Region, Pacific Sales Office in Hawaii. Because of an administrative error, the high bid, by Greer Machinery Company, Inc., was misread and the machine was sold to Driesbock. Ten days later, the error was discovered and Driesbock was informed that the purchase contract was being canceled and its payment would be returned. Although Driesbock objected that it had already resold the machine and had spent $1,300 for air fare to Guam, the protest was rejected. The original sale to Driesbock was ruled invalid because of the administrative error, and since Driesbock had not yet taken possession of the machine, conclusive presumption of compliance with surplus sales procedures does not arise. Furthermore, the government is not bound by the actions of its agents acting beyond their authority and contrary to law.