B-174057, NOV 18, 1971
Highlights
AS THE RECORD INDICATES THAT ERROR IN TRANSCRIPTION WAS MADE IN THE UNIT PRICE. AS THE CONTRACTING OFFICER INDICATES THAT THE DIFFERENCE WAS A NOTICE OF PROBABLE ERROR. IS STILL LOW. CONTRACT IS VALID. THE PRICE BID ON ITEM 4 WAS $6.03 PER ROLL. THAT PRICE RESULTED FROM A TRANSCRIPTION ERROR IN THAT THE PRICE ON THE WORKSHEET FROM WHICH THE BID WAS PREPARED WAS $6.93 PER ROLL. THE ESTIMATED QUANTITY FOR ITEM 4 WAS 3. 186 ROLLS AND THE EXTENDED PRICE WAS $22. THE UNIT PRICE WILL BE PRESUMED TO BE CORRECT. THE UNIT PRICE WAS PRESUMED TO BE CORRECT AND THE EXTENDED PRICE FOR ITEM 4 WAS CONSIDERED TO BE $19. THE OTHER RESPONSIVE BIDS RECEIVED ON ITEM 4 WERE $7.13. AWARD WAS MADE TO MONSANTO ON THE BASIS OF ITS LOW UNIT PRICE.
B-174057, NOV 18, 1971
CONTRACTS - MISTAKE - CORRECTION DECISION ALLOWING CORRECTION OF ERROR IN CONTRACT BETWEEN GENERAL SERVICES ADMINISTRATION AND MONSANTO COMPANY. AS THE RECORD INDICATES THAT ERROR IN TRANSCRIPTION WAS MADE IN THE UNIT PRICE, AND AS THE CONTRACTING OFFICER INDICATES THAT THE DIFFERENCE WAS A NOTICE OF PROBABLE ERROR, THE MISTAKE MAY BE CORRECTED. AS THE BID, AS CORRECTED, IS STILL LOW, CONTRACT IS VALID.
TO MR. ROBERT L. KUNZIG:
BY A LETTER DATED SEPTEMBER 3, 1971, YOUR GENERAL COUNSEL REQUESTED A DECISION WHETHER THE PRICE FOR ITEM 4, GROUP B, REGION 4, IN CONTRACT NO. GS-08S-29013, WITH THE MONSANTO COMPANY, SHOULD BE CORRECTED IN VIEW OF AN ERROR IN BID ALLEGED AFTER AWARD OF THE CONTRACT.
THE PRICE BID ON ITEM 4 WAS $6.03 PER ROLL. HOWEVER, THAT PRICE RESULTED FROM A TRANSCRIPTION ERROR IN THAT THE PRICE ON THE WORKSHEET FROM WHICH THE BID WAS PREPARED WAS $6.93 PER ROLL. THE ESTIMATED QUANTITY FOR ITEM 4 WAS 3,186 ROLLS AND THE EXTENDED PRICE WAS $22,078.98.
THE INVITATION INSTRUCTIONS PROVIDED:
" *** IN CASE OF A DISCREPANCY BETWEEN A UNIT PRICE AND EXTENDED PRICE, THE UNIT PRICE WILL BE PRESUMED TO BE CORRECT, SUBJECT, HOWEVER, TO CORRECTION TO THE SAME EXTENT AND IN THE SAME MANNER AS ANY OTHER MISTAKE."
IN VIEW THEREOF, THE UNIT PRICE WAS PRESUMED TO BE CORRECT AND THE EXTENDED PRICE FOR ITEM 4 WAS CONSIDERED TO BE $19,211.58, $2,867 LESS THAN THE ACTUAL EXTENDED PRICE. THE OTHER RESPONSIVE BIDS RECEIVED ON ITEM 4 WERE $7.13, $7.80, $10.27 AND $17.30 PER ROLL. AWARD WAS MADE TO MONSANTO ON THE BASIS OF ITS LOW UNIT PRICE.
GENERALLY, IF A BIDDER HAS MADE A MISTAKE IN THE SUBMISSION OF A BID AND THE MISTAKE WAS NEITHER INDUCED NOR SHARED BY THE GOVERNMENT AND A CONTRACT HAS BEEN AWARDED ON THE BASIS OF THE BID, THE BIDDER MUST BEAR THE CONSEQUENCES OF HIS MISTAKE UNLESS THE GOVERNMENT WAS ON ACTUAL OR CONSTRUCTIVE NOTICE OF THE POSSIBILITY OF A MISTAKE. 45 COMP. GEN. 305 (1965) AND 37 ID. 685 (1958). IN THIS CASE, THE CONTRACTING OFFICER HAS INDICATED THAT THE DIFFERENCE BETWEEN THE UNIT PRICE BIDS ON ITEM 4 WAS NOTICE OF THE PROBABILITY OF ERROR. THEREFORE, WITHOUT VERIFICATION OF THE BID, THE CONTRACT WAS NOT VALID AND BINDING.
ACCORDINGLY, SINCE THE ERROR AND THE INTENDED PRICE HAVE BEEN ESTABLISHED, AND THE CORRECTED PRICE WOULD STILL BE THE LOWEST RECEIVED ON ITEM 4, THE CONTRACT SHOULD BE CORRECTED AS RECOMMENDED.
THE ENCLOSURES TRANSMITTED WITH THE GENERAL COUNSEL'S LETTER OF SEPTEMBER 3, 1971, ARE RETURNED AS REQUESTED.