Error Alleged After Award of Contract

The agency requested a decision concerning the action to be taken regarding a bid error alleged after a contract award. Since the contracting officer should have been on constructive notice of the possibility of an error in the low bid due to the disparity between the low bid, the Government estimate, and the only other bid and since he did not request verification of the bid, no valid contract was effected at the contract price. However, since an increase in contract price could not be based on factors not considered in the original bid, the vendor was entitled to quantum valebant payment for the goods furnished, not to exceed the amount claimed.