B-176444, AUG 2, 1972

B-176444: Aug 2, 1972

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SINCE THE FORMAL PRICE QUOTATION FOR THE ENTIRE JOB WAS PRECISELY THE SAME AS THE EARLIER INFORMAL PRICE QUOTATION FOR THE PARTS ALONE. THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE POSSIBILITY OF AN ERROR. SECRETARY: REFERENCE IS MADE TO YOUR LETTER DATED JUNE 30. 273 DUE TO A MISTAKE IN BID WHICH WAS ALLEGED AFTER AWARD OF THE CONTRACT. THE BUREAU OF MINES DECIDED TO PURCHASE THIS EQUIPMENT AND RELATED INSTALLATION ON A SOLE-SOURCE BASIS AND A SOLICITATION WAS SENT TO ACCELERATORS. AWARD WAS MADE AT THAT FIGURE ON MAY 12. ACCELERATORS NOTIFIED THE BUREAU OF MINES THAT THERE HAD BEEN A PRICING ERROR IN THAT THE OFFER WAS BASED UPON A PRICE FOR THE EQUIPMENT ONLY AND DID NOT INCLUDE AN AMOUNT TO COVER THE COST OF INSTALLATION.

B-176444, AUG 2, 1972

CONTRACT - INCREASE IN PRICE - CONSTRUCTIVE NOTICE OF ERROR DECISION ALLOWING AN INCREASE IN THE PRICE OF A CONTRACT LET TO ACCELERATORS, INC., BY THE BUREAU OF MINES, FOR REPAIR AND MODIFICATION OF A NEUTRON GENERATOR. SINCE THE FORMAL PRICE QUOTATION FOR THE ENTIRE JOB WAS PRECISELY THE SAME AS THE EARLIER INFORMAL PRICE QUOTATION FOR THE PARTS ALONE, THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE POSSIBILITY OF AN ERROR. ACCORDINGLY, THE CONTRACT PRICE MAY BE INCREASED AS REQUESTED.

TO MR. SECRETARY:

REFERENCE IS MADE TO YOUR LETTER DATED JUNE 30, 1972, FROM THE DIRECTOR OF SURVEY AND REVIEW, REQUESTING A DECISION WHETHER CONTRACT S4221465 WITH ACCELERATORS, INCORPORATED (ACCELERATORS), MAY BE AMENDED TO INCREASE THE CONTRACT PRICE FROM $10,228 TO $11,273 DUE TO A MISTAKE IN BID WHICH WAS ALLEGED AFTER AWARD OF THE CONTRACT.

THE BUREAU OF MINES INFORMALLY REQUESTED A PRICE QUOTATION FROM ACCELERATORS FOR THE REPAIR AND MODIFICATION OF A NEUTRON GENERATOR. IN A LETTER DATED MARCH 23, 1972, ACCELERATORS QUOTED A PRICE FOR PARTS TOTALLING $10,228 AND FOR INSTALLATION CHARGES AT $175 PER DAY PLUS TRANSPORTATION COSTS. THE BUREAU OF MINES DECIDED TO PURCHASE THIS EQUIPMENT AND RELATED INSTALLATION ON A SOLE-SOURCE BASIS AND A SOLICITATION WAS SENT TO ACCELERATORS. ACCELERATORS RESPONDED TO THE SOLICITATION WITH AN OFFER STATED IN THE AMOUNT OF $10,228, THE PRICE INITIALLY INDICATED FOR THE PARTS ALONE. AWARD WAS MADE AT THAT FIGURE ON MAY 12, 1972.

BY LETTER DATED MAY 17, 1972, ACCELERATORS NOTIFIED THE BUREAU OF MINES THAT THERE HAD BEEN A PRICING ERROR IN THAT THE OFFER WAS BASED UPON A PRICE FOR THE EQUIPMENT ONLY AND DID NOT INCLUDE AN AMOUNT TO COVER THE COST OF INSTALLATION. YOU RECOMMEND THAT THE CONTRACT PRICE BE INCREASED FROM $10,228 TO $11,273.

RELIEF FOR AN ERROR ALLEGED AFTER AWARD MAY BE GRANTED ONLY IF THE CONTRACTING OFFICER WAS ON ACTUAL OR CONSTRUCTIVE NOTICE OF THE MISTAKE AND FAILED TO REQUEST VERIFICATION. 45 COMP. GEN. 700 (1966); B 174899, JUNE 1, 1972. IN THE PRESENT CASE WE BELIEVE THE FACT THAT THE FORMAL PRICE QUOTATION FOR THE ENTIRE JOB WAS PRECISELY THE SAME AS THE EARLIER INFORMAL PRICE QUOTATION FOR PARTS ONLY SHOULD HAVE PUT THE CONTRACTING OFFICER ON NOTICE OF THE POSSIBILITY OF AN ERROR REQUIRING A REQUEST FOR VERIFICATION OF THE OFFER. SINCE THE REQUIREMENT WAS NOT MET, THE CONTRACT PRICE MAY BE INCREASED FROM $10,228 TO $11,273.