Protest Based on Mistake in Bid Alleged After Award

The United States Forest Service (USFS) solicited oral quotations from three potential suppliers of weed killer, and the USFS contracting officer notified the protesting firm that its price was substantially lower than the prices quoted by its two competitors. The protesting firm confirmed its quotation, but discovered after delivery of the product that the quotation had been in error due to the use of an outdated manufacturer's price list. The supplier noticed the error when an invoice was received from the manufacturer, whereupon the firm requested an adjustment in its contract price. The USFS denied the claim, and GAO reaffirmed this decision on appeal. It was GAO's position that since the contracting officer had advised the firm that the price was too low and had requested a verification, the firm had sufficient warning to suspect an error. The price disparity was not so great, however, that the contracting officer should have been on notice that the supplier's verification of its price was also in error or would result in an unreasonable bargain. Hence, the firm's acceptance through performance of the purchase order resulted in a contract binding as to price, and no adjustment may be authorized.