Complaint of Agency Refusal To Allow Correction or Withdrawal of Bid

The awardee of a contract complained of an agency's refusal to allow it to correct or withdraw its bid. According to the protester, a mistake occurred in the preparation of its bid. After the protester discovered the bid error, he was advised by the agency to submit his worksheets and information which would substantiate his claim of error. These documents were reviewed and found to lack clear and convincing evidence to substantiate the claim of a mistaken bid. It could not be determined who prepared the documents. The agency also alleged that numerous entries were scattered throughout the document referring to the costs which had been supposedly omitted. Upon receipt of this finding, the agency refused to allow correction or withdrawal of the bid and awarded the contract to the protester on the basis of the original bid. GAO reviews such determinations. Correction of a mistake in bid alleged after bid opening but prior to award is only allowed if the bidder can show by clear and convincing evidence that an error has been made, the manner in which the error occurred, and the intended bid price. Withdrawal may be allowed whenever it reasonably appears that an error was made. GAO deferred to the agency's finding that clear and convincing evidence required to permit correction was not present here. However, before the agency could refuse the protester permission to withdraw the bid, it should have referred this doubtful case to GAO for an advance decision. The agency also had an obligation of proving that the protester's bid was correct. This obligation was not satisfactorily fulfilled. Where a mistake in bid is discovered after bid opening but before award, the bid may be withdrawn regardless of the bidder's negligence in making the mistake. GAO did not believe that a valid and binding contract was consummated. Since the firm has already begun performance, it was entitled to payment on a quantum meruit or quantum valebant basis for the reasonable value of the services and materials furnished. The remaining requirements should be resolicited.