B-182360, NOV 8, 1974

B-182360: Nov 8, 1974

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HIGH BID WHICH WAS 474 PERCENT ABOVE ORIGINAL ACQUISITION COST AND 3. SHOULD HAVE PUT CONTRACTING OFFICER ON NOTICE OF PROBABILITY OF MISTAKE AND THEREFORE. VITAL'S BID PRICE WAS $4.08 PER UNIT AND AWARD WAS MADE TO HIM. VITAL ALLEGED THAT A MISTAKE HAD BEEN MADE IN THE BID BECAUSE $4.08 WAS INTENDED AS THE TOTAL PRICE. DSA INDICATES THAT THE ITEM DESCRIPTION STATED THE ORIGINAL ACQUISITION COST WAS $233 FOR THE TOTAL QUANTITY. DSA REPORTED THAT THE CURRENT MARKET APPRAISAL OF THE ITEM IS $0.10 PER UNIT. THE BID NEXT HIGHEST TO VITAL'S WAS $0.10 PER UNIT. THE CONTRACTING OFFICER ADMITS THAT SHE SHOULD HAVE BEEN AWARE OF A PROBABLE MISTAKE AND SHOULD HAVE SOUGHT BID VERIFICATION. WE AGREE THAT THE MAGNITUDE OF THE DISCREPANCIES SHOULD HAVE ALERTED THE CONTRACTING OFFICER TO THE PROBABILITY OF A MISTAKE.

B-182360, NOV 8, 1974

IN SURPLUS SALE, HIGH BID WHICH WAS 474 PERCENT ABOVE ORIGINAL ACQUISITION COST AND 3,980 PERCENT ABOVE NEXT HIGH BID AND CURRENT MARKET APPRAISAL, SHOULD HAVE PUT CONTRACTING OFFICER ON NOTICE OF PROBABILITY OF MISTAKE AND THEREFORE, CONTRACT AWARDED WITHOUT BID VERIFICATION SHOULD BE RESCINDED AS RECOMMENDED BY CONTRACTING AGENCY.

MICHAEL VITAL, SR.:

MR. MICHAEL VITAL, SR., SUBMITTED A BID ON ITEM 141 (328 PLOTTING BOARD CASES) OF SALES INVITATION 27-5026 ISSUED BY THE DEFENSE PROPERTY DISPOSAL REGION, DEFENSE SUPPLY AGENCY (DSA), COLUMBUS, OHIO. MR. VITAL'S BID PRICE WAS $4.08 PER UNIT AND AWARD WAS MADE TO HIM. AFTER AWARD, MR. VITAL ALLEGED THAT A MISTAKE HAD BEEN MADE IN THE BID BECAUSE $4.08 WAS INTENDED AS THE TOTAL PRICE.

DSA INDICATES THAT THE ITEM DESCRIPTION STATED THE ORIGINAL ACQUISITION COST WAS $233 FOR THE TOTAL QUANTITY. FURTHER, DSA REPORTED THAT THE CURRENT MARKET APPRAISAL OF THE ITEM IS $0.10 PER UNIT. INDEED, THE BID NEXT HIGHEST TO VITAL'S WAS $0.10 PER UNIT.

IN VIEW OF THE DIFFERENCE BETWEEN (1) THE ORIGINAL ACQUISITION COST AND VITAL'S BID PRICE (474 PERCENT), AND (2) VITAL'S PRICE, THE NEXT BIDDER'S AND THE CURRENT MARKET APPRAISAL (3,980 PERCENT), THE CONTRACTING OFFICER ADMITS THAT SHE SHOULD HAVE BEEN AWARE OF A PROBABLE MISTAKE AND SHOULD HAVE SOUGHT BID VERIFICATION. MATTER OF BEN LISSAUR CO., B-181836, MATTER OF WINSOR METAL PRODUCTS, B-180187, JANUARY 29, 1974. DSA, THEREFORE, RECOMMENDS THAT THE CONTRACT BE RESCINDED.

WE AGREE THAT THE MAGNITUDE OF THE DISCREPANCIES SHOULD HAVE ALERTED THE CONTRACTING OFFICER TO THE PROBABILITY OF A MISTAKE. SINCE NO VERIFICATION WAS REQUESTED PRIOR TO AWARD, WE CONCUR IN THE DSA RECOMMENDATION.