B-176800, SEP 21, 1972

B-176800: Sep 21, 1972

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SINCE OSI'S BID WAS 2 1/2 TIMES THE AMOUNT OF THE NEXT HIGH BID AND CURRENT MARKET APPRAISAL. THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF ERROR AND VERIFICATION SHOULD HAVE BEEN REQUESTED BEFORE AWARD. WHICH WAS ALMOST 2 1/2 TIMES THE AMOUNT OF THE NEXT HIGH BID AND THE CURRENT MARKET APPRAISAL. SHOULD HAVE PUT THE CONTRACTING OFFICER ON NOTICE OF AN ERROR IN THE OUTLET 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-176800, SEP 21, 1972

CONTRACT - RESCISSION DECISION ALLOWING RESCISSION OF A SALES CONTRACT AWARDED TO OUTLET STORES, INC. (OSI), BY THE DEFENSE SUPPLY AGENCY. SINCE OSI'S BID WAS 2 1/2 TIMES THE AMOUNT OF THE NEXT HIGH BID AND CURRENT MARKET APPRAISAL, THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF ERROR AND VERIFICATION SHOULD HAVE BEEN REQUESTED BEFORE AWARD. ACCORDINGLY, THE CONTRACT MAY BE RESCINDED.

TO GENERAL WALLACE H. ROBINSON:

BY LETTER DATED AUGUST 15, 1972, WITH ENCLOSURES, YOUR ASSISTANT COUNSEL RECOMMENDED THAT CONTRACT NO. 46-2128-206 AWARDED TO OUTLET STORES CO. ON ITEM 26 OF SALE NO. 46-2128 BE RESCINDED ON THE GROUND THAT ITS BID PRICE, WHICH WAS ALMOST 2 1/2 TIMES THE AMOUNT OF THE NEXT HIGH BID AND THE CURRENT MARKET APPRAISAL, SHOULD HAVE PUT THE CONTRACTING OFFICER ON NOTICE OF AN ERROR IN THE OUTLET 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 ACCORDINGLY, THE SALES CONTRACT MAY BE RESCINDED, AS RECOMMENDED.