B-140497, AUG. 27, 1959

B-140497, AUG. 27, 1959

TO HONORABLE FRANKLIN FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER DATED AUGUST 14, 1959, WITH ENCLOSURES, RELATIVE TO AN APPEAL BY HOWARD PAPER COMPANY, ATLANTA, GEORGIA, FROM THE DECISION OF THE CONTRACTING OFFICER DENYING THE COMPANY'S REQUEST, BECAUSE OF A MISTAKE IN BID ALLEGED AFTER AWARD, FOR AN ADJUSTMENT IN THE PRICE STIPULATED IN THE UNNUMBERED CONTRACT BASED ON THE BID AND AWARDED ON MARCH 4, 1959, PURSUANT TO WHICH PURCHASE ORDER NO. WA-S-55122-2, DATED, MARCH 6, 1959, WAS ISSUED.

THE FACTS IN RESPECT TO THE CLAIM APPEAR TO BE FULLY SET FORTH IN THE REPORT DATED AUGUST 6, 1959, OF THE BOARD OF REVIEW, GENERAL SERVICES ADMINISTRATION, COVERING THE APPEAL (DOCKET NO. 467).

AFTER CAREFUL CONSIDERATION OF THE FACTS AND EVIDENCE OF RECORD IN THIS CASE, IT IS ALSO OUR OPINION THAT THE CONTRACTING OFFICER, FOR THE REASONS STATED BY THE BOARD OF REVIEW, SHOULD HAVE BEEN AWARE OF THE POSSIBILITY OF ERROR IN THE BID OF HOWARD PAPER COMPANY AND, THEREFORE, SHOULD NOT HAVE ACCEPTED ITS BID WITHOUT REQUESTING VERIFICATION.

ACCORDINGLY, AND SINCE IT WOULD BE INEQUITABLE FOR THE GOVERNMENT TO TAKE ADVANTAGE OF THE MISTAKE, AS ALLEGED AND SUBSTANTIATED, PAYMENT IS AUTHORIZED TO BE MADE AT THE REQUESTED UNIT PRICE OF $14.10, WHICH IS STILL LOWER THAN THE AMOUNT OF THE NEXT LOW BID OF $14.15 PER THOUSAND BAGS, FOR DELIVERIES MADE OR TO BE MADE BY HOWARD PAPER COMPANY.

THE PAPERS, WITH THE EXCEPTION OF THE COPY OF THE REPORT OF THE BOARD OF REVIEW, ARE RETURNED.