A-88441, DECEMBER 2, 1937, 17 COMP. GEN. 456

A-88441: Dec 2, 1937

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

CONTRACTS - MISTAKES - BIDS - ACCEPTANCE IN GOOD FAITH AND BIDDER'S NEGLIGENCE THE GENERAL ACCOUNTING OFFICE IS WITHOUT AUTHORITY TO APPROVE REFORMATION OF A LEGAL AND VALID CONTRACT OR TO APPROVE FOR ALLOWANCE ANY AMOUNT IN ADDITION TO THE CONTRACT PRICE WHERE MISTAKE IN BID WAS NOT ALLEGED UNTIL AFTER THE BID WAS ACCEPTED IN GOOD FAITH. THE SPECIFICATIONS WERE PLAIN AS TO REQUIREMENTS. THERE WAS NOTHING IN THE BID TO SUGGEST ERROR. DISALLOWING YOUR CLAIM FOR $120 IN ADDITION TO THE CONTRACT PRICE YOU ALREADY HAVE RECEIVED FOR SAND BLAST AND DELIVERED TO THE NAVY DEPARTMENT ON DEPARTMENT ORDER NO. YOUR BID WHICH WAS ACCEPTED WAS UPON READVERTISED SPECIFICATIONS UPON WHICH. THE READVERTISED SPECIFICATIONS WERE PLAIN AS TO WHAT WAS REQUIRED.

A-88441, DECEMBER 2, 1937, 17 COMP. GEN. 456

CONTRACTS - MISTAKES - BIDS - ACCEPTANCE IN GOOD FAITH AND BIDDER'S NEGLIGENCE THE GENERAL ACCOUNTING OFFICE IS WITHOUT AUTHORITY TO APPROVE REFORMATION OF A LEGAL AND VALID CONTRACT OR TO APPROVE FOR ALLOWANCE ANY AMOUNT IN ADDITION TO THE CONTRACT PRICE WHERE MISTAKE IN BID WAS NOT ALLEGED UNTIL AFTER THE BID WAS ACCEPTED IN GOOD FAITH, THE SPECIFICATIONS WERE PLAIN AS TO REQUIREMENTS, AND THERE WAS NOTHING IN THE BID TO SUGGEST ERROR, THE ALLEGED ERROR, IF IT ACTUALLY OCCURRED, BEING THE RESULT OF CARELESSNESS OR INATTENTION IN THE PREPARATION OF THE BID.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE WEDRON SILICA COMPANY, DECEMBER 2, 1937:

YOUR LETTER OF OCTOBER 2, 1937, REQUESTS REVIEW OF THE ACTION OF THIS OFFICE IN LETTER OF SEPTEMBER 18, 1937, DISALLOWING YOUR CLAIM FOR $120 IN ADDITION TO THE CONTRACT PRICE YOU ALREADY HAVE RECEIVED FOR SAND BLAST AND DELIVERED TO THE NAVY DEPARTMENT ON DEPARTMENT ORDER NO. N156S-10959, OF APRIL 3, 1937. YOUR CLAIM RESTS ON AN ALLEGED MISTAKE IN THE PREPARATION OF YOUR BID.

YOUR BID WHICH WAS ACCEPTED WAS UPON READVERTISED SPECIFICATIONS UPON WHICH, APPARENTLY, YOU PREVIOUSLY HAD BID. HOWEVER, THAT MAY BE, THE READVERTISED SPECIFICATIONS WERE PLAIN AS TO WHAT WAS REQUIRED, AND IF THE ERROR YOU ASSERT ACTUALLY OCCURRED IT WAS DUE TO CARELESSNESS OR INATTENTION IN THE PREPARATION OF YOUR BID. THERE WAS NOTHING IN YOUR BID TO SUGGEST ERROR AND ERROR WAS NOT ALLEGED UNTIL AFTER THE BID WAS ACCEPTED IN GOOD FAITH THEREBY CONSTITUTING A LEGAL AND VALID CONTRACT. THIS OFFICE IS WITHOUT AUTHORITY TO APPROVE REFORMATION OF THE CONTRACT OR TO APPROVE FOR ALLOWANCE FROM APPROPRIATED FUNDS ANY AMOUNT IN ADDITION TO THE FULL CONTRACT PRICE WHICH ALREADY HAS BEEN PAID TO YOU. ACCORDINGLY, THE ACTION DISALLOWING YOUR CLAIM WAS CORRECT AND MUST BE, AND HEREBY IS, SUSTAINED. PERRY-BURNS COAL CO., INC. V. UNITED STATES, CT.CLS. NO. 42562, DECIDED APRIL 5, 1937; AMERICAN WATER SOFTENER CO. V. UNITED STATES, 50 CT.CLS. 209; THE ELLICOTT MACHINE CO. V. UNITED STATES, 44 ID. 127; 15 COMP. GEN. 1049.