Request for Contract Rescission Because of Alleged Overbid

B-183913: Jun 9, 1975

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Ralph O. White
(202) 512-8278
WhiteRO@gao.gov

Kenneth E. Patton
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PattonK@gao.gov

 

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A company requested rescission of a surplus Government property contract award and relief from a penalty on the grounds of a substantial erroneous overbid. Relief may be granted on one contract item on which the bid was more than four times the next high bid and almost ten times the bid price for similar equipment, thus putting the contracting officer on constructive notice of error. However, on another item where no such disparity in prices was shown, relief may not be granted.