B-180793, APR 9, 1974

B-180793: Apr 9, 1974

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SALES CONTRACT MAY BE REFORMED BY DELETION OF ITEM WHERE THERE IS SUBSTANTIAL DISPARITY BETWEEN THE BID ON SUCH ITEM ($0.7670 PER UNIT) AND NEXT HIGH BID ($0.104) AND CURRENT MARKET APPRAISAL ($0.03). SINCE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR AND BID SHOULD HAVE BEEN VERIFIED PRIOR TO AWARD. RELIEF IS REQUESTED ON THE BASIS THAT DUE TO THE SUBSTANTIAL DISPARITY BETWEEN THE BID SUBMITTED BY VAC AIR AND THE OTHER BIDS RECEIVED AND THE CURRENT MARKET APPRAISAL THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN THE BID AND SHOULD HAVE REQUESTED VERIFICATION THEREOF PRIOR TO AWARD. THAT THIS INTENTION IS EVIDENCED BY THE DISPARITY BETWEEN ITS HIGH BID AND THE OTHER BIDS RECEIVED.

B-180793, APR 9, 1974

SALES CONTRACT MAY BE REFORMED BY DELETION OF ITEM WHERE THERE IS SUBSTANTIAL DISPARITY BETWEEN THE BID ON SUCH ITEM ($0.7670 PER UNIT) AND NEXT HIGH BID ($0.104) AND CURRENT MARKET APPRAISAL ($0.03), SINCE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR AND BID SHOULD HAVE BEEN VERIFIED PRIOR TO AWARD.

TO VAC AIR ALLOYS CORP.:

BY LETTER DATED MARCH 7, 1974, WITH ENCLOSURES, THE ASSISTANT COUNSEL, DEFENSE SUPPLY AGENCY, IN CONCURRENCE WITH THE DEFENSE PROPERTY DISPOSAL SERVICE, RECOMMENDED REFORMATION OF CONTRACT NO. 27 4183-104, BY THE DELETION OF ITEM 40, AWARDED TO VAC AIR ALLOYS CORPORATION FOR 20,000 POUNDS OF ELECTRICAL AND ELECTRONICS SCRAP AT A PRICE OF $0.7670 PER POUND UNDER SALE NO. 27-4183. RELIEF IS REQUESTED ON THE BASIS THAT DUE TO THE SUBSTANTIAL DISPARITY BETWEEN THE BID SUBMITTED BY VAC AIR AND THE OTHER BIDS RECEIVED AND THE CURRENT MARKET APPRAISAL THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN THE BID AND SHOULD HAVE REQUESTED VERIFICATION THEREOF PRIOR TO AWARD.

IN A LETTER DATED JANUARY 28, 1974, VAC AIR STATED THAT IT DID NOT INTEND TO BID ON ITEM 40, BUT RATHER INTENDED TO BID ON ITEM 39, AND THAT THIS INTENTION IS EVIDENCED BY THE DISPARITY BETWEEN ITS HIGH BID AND THE OTHER BIDS RECEIVED.

WE HAVE REVIEWED THE ADMINISTRATIVE FILE AND, ON THE BASIS OF THE INFORMATION CONTAINED THEREIN, WHICH DISCLOSES THAT THE CURRENT MARKET APPRAISAL OF ITEM 40 WAS $0.03 PER POUND AND THE NEXT HIGHEST BID WAS $0.104, WE AGREE THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN THE BID OF VAC AIR, AND THAT HE SHOULD HAVE REQUESTED VERIFICATION PRIOR TO AWARD. SEE B-180128, JANUARY 29, 1974.

ACCORDINGLY, THE SALES CONTRACT MAY BE REFORMED BY DELETION OF ITEM 40 AS ADMINISTRATIVELY RECOMMENDED.