B-176446, JUL 14, 1972

B-176446: Jul 14, 1972

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SINCE BOND'S BID WAS MORE THAN 100 PERCENT HIGHER THAN THE SECOND HIGH BID. THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF A POSSIBLE ERROR IN THE BID AND SHOULD HAVE REQUESTED VERIFICATION OF IT. WHICH WAS MORE THAN 100 PERCENT HIGHER THAN THE "UPSET PRICE" AND THE SECOND HIGH BID AND MORE THAN THREE TIMES THE ORIGINAL ACQUISITION COST. SHOULD HAVE PUT THE CONTRACTING OFFICER ON NOTICE OF AN ERROR IN THE BOND BID. WE HAVE REVIEWED THE ADMINISTRATIVE FILE AND. WE AGREE THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF ERROR AND THAT VERIFICATION SHOULD HAVE BEEN REQUESTED BEFORE AWARD WAS ACCOMPLISHED.

B-176446, JUL 14, 1972

CONTRACT - RECISION - MISTAKE IN BID DECISION ALLOWING RECISION OF A CONTRACT AWARDED TO BOND INDUSTRIAL MACHINERY CO., UNDER AN IFB ISSUED BY GSA. SINCE BOND'S BID WAS MORE THAN 100 PERCENT HIGHER THAN THE SECOND HIGH BID, THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF A POSSIBLE ERROR IN THE BID AND SHOULD HAVE REQUESTED VERIFICATION OF IT.

TO MR. ARTHUR F. SAMPSON:

BY LETTER DATED JULY 5, 1972, WITH ENCLOSURES, YOUR GENERAL COUNSEL RECOMMENDED THAT A CONTRACT AWARDED TO THE BOND INDUSTRIAL MACHINERY COMPANY, UNDER ITEM 10 OF SALES INVITATION FOR BIDS 9DPSLA)72-115, BE RESCINDED ON THE GROUND THAT ITS BID PRICE, WHICH WAS MORE THAN 100 PERCENT HIGHER THAN THE "UPSET PRICE" AND THE SECOND HIGH BID AND MORE THAN THREE TIMES THE ORIGINAL ACQUISITION COST, SHOULD HAVE PUT THE CONTRACTING OFFICER ON NOTICE OF AN ERROR IN THE BOND BID.

WE HAVE REVIEWED THE ADMINISTRATIVE FILE AND, ON THE BASIS OF THE INFORMATION CONTAINED THEREIN, WE AGREE THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF ERROR AND THAT VERIFICATION SHOULD HAVE BEEN REQUESTED BEFORE AWARD WAS ACCOMPLISHED. ACCORDINGLY, THE SALES CONTRACT MAY BE RESCINDED, AS RECOMMENDED.