B-181958, AUG 16, 1974

B-181958: Aug 16, 1974

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MAY HAVE CONTRACT AWARDED HIM REFORMED. ORDINARILY A WIDE RANGE OF BID PRICES IN SURPLUS SALE IS NOT DEEMED SUFFICIENT TO PUT CONTRACTING OFFICER ON CONSTRUCTIVE NOTICE OF MISTAKE IN BID. GAO AGREES WITH ADMINISTRATIVE POSITION THAT CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE UNDER CIRCUMSTANCES WHERE NEXT BID WAS $600.00. PROPERTY'S CURRENT MARKET APPRAISAL WAS $600 AND BID REPRESENTED APPROXIMATELY 95 PERCENT OF ACQUISITION COST FOR USED PROPERTY. INCLUDING ITEM 31 WHICH WAS LISTED AS A BELT CONVEYOR OFFERED ON A "PRICE FOR THE LOT" BASIS. 136.99 WAS THE HIGH BID RECEIVED FOR THE ITEM AND AWARD WAS EFFECTED JULY 3. RATHER HAD INTENDED TO BID ON ITEM 32 WHICH WAS A RAILWAY TRUCK. ITEM 32 WAS AWARDED TO ANOTHER BIDDER FOR $10.

B-181958, AUG 16, 1974

BIDDER, WHO MISTAKENLY BID $8,136.99 ON WRONG SURPLUS SALE ITEM, MAY HAVE CONTRACT AWARDED HIM REFORMED. ORDINARILY A WIDE RANGE OF BID PRICES IN SURPLUS SALE IS NOT DEEMED SUFFICIENT TO PUT CONTRACTING OFFICER ON CONSTRUCTIVE NOTICE OF MISTAKE IN BID; HOWEVER, GAO AGREES WITH ADMINISTRATIVE POSITION THAT CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE UNDER CIRCUMSTANCES WHERE NEXT BID WAS $600.00, PROPERTY'S CURRENT MARKET APPRAISAL WAS $600 AND BID REPRESENTED APPROXIMATELY 95 PERCENT OF ACQUISITION COST FOR USED PROPERTY.

STRIEGEL SUPPLY AND EQUIPMENT CORP.

PURSUANT TO SALE NO. 27-4347, THE DEFENSE PROPERTY DISPOSAL SERVICE, DEFENSE SUPPLY AGENCY, INVITED BIDS FOR VARIOUS SURPLUS ITEMS. STRIEGEL SUPPLY AND EQUIPMENT CORP. SUBMITTED BIDS ON FIVE ITEMS, INCLUDING ITEM 31 WHICH WAS LISTED AS A BELT CONVEYOR OFFERED ON A "PRICE FOR THE LOT" BASIS. STRIEGEL'S BID FOR ITEM 31 OF $8,136.99 WAS THE HIGH BID RECEIVED FOR THE ITEM AND AWARD WAS EFFECTED JULY 3, 1974, UNDER SALE CONTRACT NO. 27-4347-083.

STRIEGEL REQUESTS THAT THIS CONTRACT BE REFORMED BY THE DELETION OF ITEM 31 DUE TO A MISTAKE IN ITS BID. STRIEGEL STATES THAT IT HAD NOT INTENDED TO BID ON ITEM 31, BUT RATHER HAD INTENDED TO BID ON ITEM 32 WHICH WAS A RAILWAY TRUCK. ITEM 32 WAS AWARDED TO ANOTHER BIDDER FOR $10,050.00.

REFORMATION OF THIS CONTRACT CAN ONLY BE ALLOWED IF THE CONTRACTING OFFICER HAD ACTUAL OR CONSTRUCTIVE NOTICE THAT STRIEGEL HAD MADE A MISTAKE IN BID. ORDINARILY, A WIDE RANGE OF BID PRICES IN SURPLUS PROPERTY SALES IS NOT DEEMED TO BE SUFFICIENT TO PUT THE CONTRACTING OFFICER ON CONSTRUCTIVE NOTICE OF ERROR BECAUSE OF THE MANY POSSIBLE USES TO WHICH THE PROPERTY MAY BE PUT. WENDER PRESSES, INC. V. UNITED STATES, 170 CT. CL. 483 (1965); B-174940, APRIL 20, 1972; B-179305, OCTOBER 23, 1973. HOWEVER, IN THE PRESENT CASE, STRIEGEL'S BID FAR EXCEEDED THE NEXT HIGH BID OF $600.00 AND THE PROPERTY'S $600.00 CURRENT MARKET APPRAISAL. MOREOVER, EVEN THOUGH THE PROPERTY IS DESCRIBED AS BEING USED, STRIEGEL'S BID REPRESENTS APPROXIMATELY 95 PERCENT OF THE PROPERTY'S ACQUISITION COST. UNDER THESE CIRCUMSTANCES, WE BELIEVE THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF A MISTAKE IN STRIEGEL'S BID. SEE B-176123, JULY 3, 1972; B-177167, OCTOBER 30, 1972.

ACCORDINGLY, WE AGREE WITH THE ADMINISTRATIVE RECOMMENDATION THAT THIS CONTRACT BE REFORMED BY THE DELETION OF ITEM 31 WITHOUT FURTHER OBLIGATION OF EITHER PARTY.