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B-158730, MAR. 28, 1966

B-158730 Mar 28, 1966
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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER. ON THE DAY AFTER BIDS WERE OPENED. THE GENERAL RULE IS THAT ACCEPTANCE OF A BID WITH KNOWLEDGE OF ERROR THEREIN DOES NOT CONSUMMATE A VALID AND BINDING CONTRACT. ALLOWING GIERZA TO CORRECT HIS BID TO ITEM 23 WOULD HAVE NO AFFECT. WE FEEL THE APPROPRIATE ACTION IS TO ALLOW GIERZA TO WITHDRAW HIS BID ON ITEM 24.

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B-158730, MAR. 28, 1966

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER, 900:DGC:BGW, NT4-42/4500/4365, DATED MARCH 11, 1966, FROM THE COMMANDING OFFICER, UNITED STATES NAVAL SUPPLY DEPOT, GUAM, FORWARDING THE PAPERS INVOLVED IN THE REQUEST OF TOBIAS O. GIERZA, TO WITHDRAW HIS BID ON ITEM NO. 24, UNDER SALES INVITATION NO. 61119-S-66- 37. MR. GIERZA ALLEGED, ON THE DAY AFTER BIDS WERE OPENED, THAT HE HAD INTENDED TO BID ON ITEM 23 RATHER THAN ITEM 24, AND SUBSTANTIATED HIS ALLEGATION BY SUBMITTING HIS WORKSHEET.

THE GENERAL RULE IS THAT ACCEPTANCE OF A BID WITH KNOWLEDGE OF ERROR THEREIN DOES NOT CONSUMMATE A VALID AND BINDING CONTRACT. NASON COAL COMPANY V. UNITED STATES, 64 CT.CL. 526; ALTA ELEC. AND MECH. CO., INC. V. UNITED STATES, 90 CT.CL. 466; KEMP V. UNITED STATES, 38 F.SUPP. 568. IN THE OPINION OF THE CONTRACTING OFFICER, GIERZA HAS PROVEN THAT HE MADE AN ERROR IN HIS BID AND, UNDER THESE CIRCUMSTANCES, IT DOES NOT APPEAR THAT A VALID AND BINDING CONTRACT COULD BE FORMED BY ACCEPTANCE OF THE BID. FURTHER, ALLOWING GIERZA TO CORRECT HIS BID TO ITEM 23 WOULD HAVE NO AFFECT, SINCE HE WOULD BE FOURTH LOW BIDDER. CONSEQUENTLY, WE FEEL THE APPROPRIATE ACTION IS TO ALLOW GIERZA TO WITHDRAW HIS BID ON ITEM 24. SEE B-149360, JULY 19, 1962; B-147855, JANUARY 18, 1962.

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