B-130238, FEB. 28, 1957
Highlights
GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 28. IN CERTAIN ERROR IN BID CASES WHERE THE ERROR IS NOT ALLEGED UNTIL AFTER AWARD. IT IS STATED THAT THE GENERAL SERVICES ADMINISTRATION ENTERS INTO A GREAT NUMBER OF CONTRACTS EACH YEAR. THAT FREQUENTLY CASES ARISE WHERE CONTRACTORS ALLEGE RELATIVELY MINOR ERRORS IN THEIR BIDS UPON WHICH SUCH CONTRACTS ARE BASED. THAT IN MANY OF THOSE CASES IT IS APPARENT THAT THE CONTRACTOR IS ENTITLED TO RELIEF. THAT UNDER THE PRESENT PROCEDURE EACH OF SUCH CASES IS SUBMITTED TO THIS OFFICE FOR APPROVAL. IT IS. APPROPRIATE FINDINGS AND DETERMINATION WILL BE MADE BY THE CONTRACTING OFFICER AND APPROVED BY EITHER THE GENERAL COUNSEL OF GSA OR AN ASSOCIATE OR ASSISTANT GENERAL COUNSEL OF GSA THAT THE EVIDENCE IS CLEAR AND CONVINCING.
B-130238, FEB. 28, 1957
TO THE HONORABLE FRANKLIN G. FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:
REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 28, 1956, REQUESTING THAT AUTHORITY BE GRANTED THE GENERAL SERVICES ADMINISTRATION TO TAKE ACTION ADMINISTRATIVELY, WITHOUT THE SUBMISSION TO THIS OFFICE FOR DECISION, IN CERTAIN ERROR IN BID CASES WHERE THE ERROR IS NOT ALLEGED UNTIL AFTER AWARD.
IT IS STATED THAT THE GENERAL SERVICES ADMINISTRATION ENTERS INTO A GREAT NUMBER OF CONTRACTS EACH YEAR; THAT FREQUENTLY CASES ARISE WHERE CONTRACTORS ALLEGE RELATIVELY MINOR ERRORS IN THEIR BIDS UPON WHICH SUCH CONTRACTS ARE BASED; THAT IN MANY OF THOSE CASES IT IS APPARENT THAT THE CONTRACTOR IS ENTITLED TO RELIEF; AND THAT UNDER THE PRESENT PROCEDURE EACH OF SUCH CASES IS SUBMITTED TO THIS OFFICE FOR APPROVAL, OFTEN INVOLVING DISPROPORTIONATELY HEAVY ADMINISTRATIVE COSTS IN RELATION TO THE AMOUNT INVOLVED. IT IS, THEREFORE, REQUESTED THAT THE GENERAL SERVICES ADMINISTRATION BE GRANTED AUTHORITY TO TAKE THE FOLLOWING ADMINISTRATIVE ACTION, UNDER THE CIRCUMSTANCES ENUMERATED, WITH RESPECT TO MISTAKES IN BIDS ALLEGED AFTER AWARD OF CONTRACT:
"A. CONTRACTS NOT IN EXCESS OF $500 MAY BE RESCINDED.
"B. CONTRACTS, IRRESPECTIVE OF AMOUNT, MAY BE REFORMED WHEN ANY RESULTANT INCREASE IN PRICE DOES NOT EXCEED $500 AND THE REFORMED CONTRACT PRICE DOES NOT EXCEED THAT OF THE NEXT LOWEST ACCEPTABLE BID OR PROPOSAL UNDER THE ORIGINAL INVITATION FOR BIDS OR SOLICITATION FOR OFFERS.
"IN THE CASE OF EACH PROPOSED RESCISSION OR REFORMATION OF CONTRACT, APPROPRIATE FINDINGS AND DETERMINATION WILL BE MADE BY THE CONTRACTING OFFICER AND APPROVED BY EITHER THE GENERAL COUNSEL OF GSA OR AN ASSOCIATE OR ASSISTANT GENERAL COUNSEL OF GSA THAT THE EVIDENCE IS CLEAR AND CONVINCING, THAT A MISTAKE WAS MADE BY THE CONTRACTOR IN THE BID OR PROPOSAL AND THAT THE CONTRACT PRICE SHOULD BE INCREASED IN THE AMOUNT DETERMINED TO BE APPROPRIATE BY THE CONTRACTING OFFICER OR THAT THE CONTRACT SHOULD BE RESCINDED.
"A COPY OF THE FINDINGS AND DETERMINATION SHALL BE ATTACHED TO EACH COPY OF THE CONTRACT MODIFICATION.
"WHERE THE RESCISSION OR REFORMATION REQUESTED WOULD EXCEED THE LIMITATIONS SET FORTH IN PARAGRAPHS A AND B ABOVE, OR WHERE THE REQUEST FOR REFORMATION OR RESCISSION IS NOT GRANTED EITHER BECAUSE OF DOUBT OR FOR OTHER REASONS, THE CASE WILL BE PROCESSED TO YOUR OFFICE UNDER EXISTING PROCEDURES.
"THIS AGENCY WOULD EXPECT TO BE BOUND BY THE CONDITIONS SET FORTH IN THE LAST PARAGRAPH OF YOUR LETTER OF JULY 26, 1955 TO THE DEPARTMENT OF THE ARMY POINTING OUT THAT APPROVAL OF THE PROCEDURE PROPOSED IS NOT TO BE CONSTRUED AS APPROVAL OF THE ACTION TAKEN AND THAT YOU WOULD STILL RESERVE THE RIGHT TO QUESTION THE CORRECTNESS OF SUCH ACTION IN THE AUDIT OF ACCOUNTS.'
SUBJECT TO THE CONDITIONS SET FORTH IN YOUR LETTER, THE PROCEDURE PROPOSED IS APPROVED.