Request for Rescission of Contract

B-195258: Jul 13, 1979

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Kenneth E. Patton
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A company submitted the high bid for a sale item and award was subsequently made to it. Upon receipt of notice of award, the firm alleged that it intended to bid on another item. The procuring agency requested that the contract be rescinded since the contracting officer was on constructive notice of a possible error in the bid and should have requested verification prior to award. Since the high bid was 5.2 times greater than the second high bid, and it exceeded the item's acquisition price by 183 percent, GAO agreed with the procuring agency and allowed the contract to be rescinded.