B-177612, MAR 9, 1973

B-177612: Mar 9, 1973

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SINCE THE HUGHES' BID WAS ALMOST TWICE THE AMOUNT OF THE NEXT HIGH BID AND 2 1/2 TIMES THE CURRENT MARKET APPRAISAL. THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE ERROR AND SHOULD HAVE VERIFIED THE HUGHES' BID PRIOR TO AWARD. WHICH WAS ALMOST TWICE THE AMOUNT OF THE NEXT HIGH BID AND MORE THAN 2 1/2 TIMES THE CURRENT MARKET APPRAISAL. SHOULD HAVE PLACED THE CONTRACTING OFFICER ON NOTICE OF ERROR IN HUGHES' BID. WE HAVE REVIEWED THE ADMINISTRATIVE FILE AND. WE AGREE THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF ERROR AND THAT THE BID SHOULD HAVE BEEN VERIFIED PRIOR TO AWARD.

B-177612, MAR 9, 1973

CONTRACT - RESCISSION - CONSTRUCTIVE NOTICE OF ERROR DECISION ALLOWING RESCISSION OF A SALES CONTRACT AWARDED TO HUGHES MOVING & STORAGE BY THE DEFENSE SUPPLY AGENCY. SINCE THE HUGHES' BID WAS ALMOST TWICE THE AMOUNT OF THE NEXT HIGH BID AND 2 1/2 TIMES THE CURRENT MARKET APPRAISAL, THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE ERROR AND SHOULD HAVE VERIFIED THE HUGHES' BID PRIOR TO AWARD.

TO LT. GEN. WALLACE H. ROBINSON, JR.:

BY LETTER DATED DECEMBER 6, 1972, YOUR ASSISTANT COUNSEL RECOMMENDED THAT SALES CONTRACT NO. 21-3006-012 AWARDED TO HUGHES MOVING & STORAGE ON ITEM 179 OF SALE NO. 21-3006 BE RESCINDED ON THE GROUND THAT ITS BID, WHICH WAS ALMOST TWICE THE AMOUNT OF THE NEXT HIGH BID AND MORE THAN 2 1/2 TIMES THE CURRENT MARKET APPRAISAL, SHOULD HAVE PLACED THE CONTRACTING OFFICER ON NOTICE OF ERROR IN HUGHES' 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 THE BID SHOULD HAVE BEEN VERIFIED PRIOR TO AWARD. ACCORDINGLY, THE SALES CONTRACT MAY BE CANCELED WITHOUT LIABILITY TO HUGHES MOVING & STORAGE.