B-176691, SEP 13, 1972

B-176691: Sep 13, 1972

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RESCISSION MAY BE ALLOWED IN THIS INSTANCE BECAUSE THE CONTRACTING OFFICER SHOULD HAVE BEEN PLACED ON NOTICE OF THE POSSIBILITY OF ERROR AS RIP'S BID WAS 300 PERCENT HIGHER THAN THE ONLY OTHER BID RECEIVED. SECRETARY: REFERENCE IS MADE TO LETTER DAEN-GCZ-M DATED AUGUST 1. THE INVITATION FOR BIDS UNDER WHICH THE CONTRACT WAS AWARDED SOLICITED BIDS FOR THE SALE AND REMOVAL OF BUILDINGS. 000 WERE REJECTED AS NONRESPONSIVE INASMUCH AS THEY WERE PREDICATED UPON PAYMENT TO SPEEDWAY FOR DEMOLITION WORK ONLY. 000 TO BE PAID TO THE GOVERNMENT WAS ACCEPTED FOR AWARD. RIP SUBMITTED ITS WORKSHEETS AND AN AFFIDAVIT TO THE EFFECT THAT IT WAS A DEMOLITION FIRM AND ITS BID WAS SUBMITTED ON THE ASSUMPTION THAT IT WOULD BE PAID $14.

B-176691, SEP 13, 1972

CONTRACT - RESCISSION DECISION ALLOWING RESCISSION OF A PROPERTY DISPOSAL CONTRACT AWARDED TO THE RIP WRECKING COMPANY BY THE DISTRICT ENGINEER, OMAHA DISTRICT, CORPS OF ENGINEERS. RESCISSION MAY BE ALLOWED IN THIS INSTANCE BECAUSE THE CONTRACTING OFFICER SHOULD HAVE BEEN PLACED ON NOTICE OF THE POSSIBILITY OF ERROR AS RIP'S BID WAS 300 PERCENT HIGHER THAN THE ONLY OTHER BID RECEIVED.

TO MR. SECRETARY:

REFERENCE IS MADE TO LETTER DAEN-GCZ-M DATED AUGUST 1, 1972, FROM THE DEPUTY GENERAL COUNSEL, OFFICE OF THE CHIEF OF ENGINEERS, FORWARDING WITH A FAVORABLE RECOMMENDATION, THE REQUEST OF THE RIP WRECKING COMPANY (RIP) FOR RESCISSION OF PROPERTY DISPOSAL CONTRACT NO. DACA-45 72-5-0029, ISSUED BY THE DISTRICT ENGINEER, OMAHA DISTRICT.

THE INVITATION FOR BIDS UNDER WHICH THE CONTRACT WAS AWARDED SOLICITED BIDS FOR THE SALE AND REMOVAL OF BUILDINGS. TWO BIDDERS RESPONDED. BIDS OF SPEEDWAY WRECKING CO. IN ALTERNATE AMOUNTS OF $23,000 AND $33,000 WERE REJECTED AS NONRESPONSIVE INASMUCH AS THEY WERE PREDICATED UPON PAYMENT TO SPEEDWAY FOR DEMOLITION WORK ONLY. THE BID OF RIP IN THE AMOUNT OF $14,000 TO BE PAID TO THE GOVERNMENT WAS ACCEPTED FOR AWARD.

SUBSEQUENT TO THE AWARD, RIP REQUESTED RESCISSION OF ITS CONTRACT BECAUSE OF AN ALLEGED MISINTERPRETATION CONSTRUING THE INVITATION TO BE FOR DEMOLITION SERVICES CALLING FOR PAYMENT TO THE CONTRACTOR. SUBSTANTIATION THEREOF, RIP SUBMITTED ITS WORKSHEETS AND AN AFFIDAVIT TO THE EFFECT THAT IT WAS A DEMOLITION FIRM AND ITS BID WAS SUBMITTED ON THE ASSUMPTION THAT IT WOULD BE PAID $14,000 UNDER THE CONTRACT.

THE CONTRACTING OFFICER HAS RECOMMENDED RESCISSION OF THE CONTRACT WITHOUT LIABILITY TO RIP ON THE GROUNDS THAT HE SHOULD HAVE BEEN AWARE OF THE POSSIBILITY OF AN ERROR AND REQUESTED VERIFICATION OF RIP'S BID SINCE IT WAS 300 PERCENT HIGHER THAN THE ONLY OTHER BID RECEIVED.

UPON OUR REVIEW OF THE RECORD, WE AGREE THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF ERROR AND THAT VERIFICATION SHOULD HAVE BEEN REQUESTED BEFORE AWARD. ACCORDINGLY, THE CONTRACT MAY BE RESCINDED, AS ADMINISTRATIVELY RECOMMENDED. SEE B-176446, JULY 14, 1972.