B-182937, MAR 21, 1975

B-182937: Mar 21, 1975

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SALES CONTRACT MAY BE RESCINDED WHERE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR BECAUSE BID IN QUESTION WAS SIX TIMES GREATER THAN NEXT HIGHEST BID. WAS 230 TIMES GREATER THAN CURRENT MARKET APPRAISAL. WHO HAVE ALLEGED A MISTAKE IN BID AFTER AWARD ON ITEM 4 UNDER SALE CONTRACT NO. 50-5023. INCLUDING ITEM 4 WHICH WAS DESCRIBED AS FOLLOWS: "FLOODLIGHT SET: 2 WHEEL TRAILER MOUNTED. SINCE C&A'S BID WAS THE HIGHEST RECEIVED. AN AWARD WAS SUBSEQUENTLY MADE TO THE INDIVIDUALS. IMPLICIT IN THE CONTRACTOR'S LETTER IS A REQUEST THAT THE AWARD BE RESCINDED. DSA REPORTS THAT C&A'S BID WAS SIX TIMES GREATER THAN THE NEXT HIGHEST BID. REPRESENTS OVER 63 PERCENT OF ACQUISITION COST OF THE ITEM WHICH WAS DESCRIBED AS BEING IN POOR CONDITION.

B-182937, MAR 21, 1975

SALES CONTRACT MAY BE RESCINDED WHERE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR BECAUSE BID IN QUESTION WAS SIX TIMES GREATER THAN NEXT HIGHEST BID, REPRESENTED 63 PERCENT OF ACQUISITION COST OF ITEM DESCRIBED AS BEING IN POOR CONDITION, AND WAS 230 TIMES GREATER THAN CURRENT MARKET APPRAISAL.

CHERKAOUI MOHAMED AND ABOULGHALI BOUCHAIB - ERROR IN BID:

BY LETTER DATED DECEMBER 26, 1974, WITH ENCLOSURES, THE ASSISTANT COUNSEL, DEFENSE SUPPLY AGENCY (DSA), REQUESTED A DECISION AS TO THE RELIEF TO BE GRANTED CHERKAOUI MOHAMED AND ABOULGHALI BOUCHAIB (C&A), WHO HAVE ALLEGED A MISTAKE IN BID AFTER AWARD ON ITEM 4 UNDER SALE CONTRACT NO. 50-5023.

THE DEFENSE PROPERTY DISPOSAL ACTIVITY, KENITRA, MOROCCO, BY SEALED BID SALE NO. 50-5023, REQUESTED BIDS FOR THE SALE OF VARIOUS ITEMS OF SURPLUS PROPERTY, INCLUDING ITEM 4 WHICH WAS DESCRIBED AS FOLLOWS:

"FLOODLIGHT SET: 2 WHEEL TRAILER MOUNTED, C.G. HANSON CO., 4 CYLINDER GASOLINE ENGINE. PARTS MISSING INCLUDING 6 FLOOD LIGHTS WITH EXTENSION CORDS.

OUTSIDE - AREA A - USED - POOR CONDITION

TOTAL COST $1,810.00

EST. TOTAL WT. 900 KG. 1 EACH

SERIAL #504-242"

C&A OFFERED TO BUY THE FLOODLIGHT SET AT A PRICE OF DH 5,000 ($1,149.43). SINCE C&A'S BID WAS THE HIGHEST RECEIVED, AN AWARD WAS SUBSEQUENTLY MADE TO THE INDIVIDUALS.

BY LETTER OF OCTOBER 2, 1974, THE BIDDERS CLAIMED A MISTAKE IN BID ALLEGING AN ERROR IN TRANSCRIPTION WHICH RESULTED IN THE BID OF DH 5,000 BEING ENTERED INSTEAD OF THE INTENDED BID OF DH 500. IMPLICIT IN THE CONTRACTOR'S LETTER IS A REQUEST THAT THE AWARD BE RESCINDED.

DSA REPORTS THAT C&A'S BID WAS SIX TIMES GREATER THAN THE NEXT HIGHEST BID, REPRESENTS OVER 63 PERCENT OF ACQUISITION COST OF THE ITEM WHICH WAS DESCRIBED AS BEING IN POOR CONDITION, AND IS 230 TIMES GREATER THAN THE CURRENT MARKET APPRAISAL OF $5.00. BECAUSE OF THESE DISPARITIES, THE CONTRACTING OFFICER STATES THAT HE SHOULD HAVE BEEN AWARE OF THE PROBABLE MISTAKE AND SHOULD HAVE SOUGHT BID VERIFICATION. CONSEQUENTLY, DSA RECOMMENDS THAT THE AWARD BE RESCINDED.

THE EVIDENCE OF RECORD REASONABLY SUPPORTS A CONCLUSION THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR AND THAT VERIFICATION SHOULD HAVE BEEN REQUESTED BEFORE THE AWARD WAS MADE. CONSEQUENTLY, THE CONTRACT MAY BE RESCINDED. MATTER OF A. SPIERINGS, B- 181121, MAY 28, 1974, AND CASES CITED IN TEXT.