Request for Contract Price Adjustment because of Bid Error

The agency recommended that an increase be allowed in a contract price because of a bid error based on a miscalculation of costs. Although the contracting officer should have been on notice of the possibility of error because of the great disparity in bid prices and with the prior year's contract price and should have verified the bid, the contract price may not be increased on the basis of factors which were not considered in the original bid. The contract may be rescinded and payment on a quantum meruit basis allowed for the reasonable value of services performed.