B-176835, OCT 4, 1972
Highlights
SINCE THE CONTRACTOR'S AWARD PRICE WAS SUBSTANTIALLY HIGHER THAN THE NEXT HIGHEST BID AND THE CURRENT MARKET APPRAISAL. THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR AND SHOULD HAVE REQUESTED VERIFICATION PRIOR TO AWARD. RELIEF IS REQUESTED ON THE BASIS THAT THE CONTRACTING OFFICER SHOULD HAVE SUSPECTED A MISTAKE IN THE BID AND REQUESTED VERIFICATION THEREOF PRIOR TO AWARD. WE HAVE REVIEWED THE ADMINISTRATIVE FILE AND. ON THE BASIS OF THE INFORMATION CONTAINED THEREIN WHICH DISCLOSES THAT THE CURRENT MARKET APPRAISAL OF ITEM 20 WAS $500 AND THE NEXT HIGHEST BID WAS $466.21. IT MAY BE CONCLUDED THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN THE BID OF ERNEST COOK.
B-176835, OCT 4, 1972
CONTRACT - RESCISSION DECISION ALLOWING THE RESCISSION OF A SALES CONTRACT AWARDED TO ERNEST COOK CONST., FOR A USED CARGO TRUCK BY THE DEFENSE LOGISTICS SERVICES CENTER. SINCE THE CONTRACTOR'S AWARD PRICE WAS SUBSTANTIALLY HIGHER THAN THE NEXT HIGHEST BID AND THE CURRENT MARKET APPRAISAL, THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR AND SHOULD HAVE REQUESTED VERIFICATION PRIOR TO AWARD.
TO LT. GEN. WALLACE H. ROBINSON, JR.:
BY LETTER DSAH-G DATED AUGUST 17, 1972, WITH ENCLOSURES, THE ASSISTANT COUNSEL, HEADQUARTERS, CAMERON STATION, IN CONCURRENCE WITH THE DEFENSE LOGISTICS SERVICES CENTER, RECOMMENDS RESCISSION OF CONTRACT NO. 21-2163- 105, AWARDED TO ERNEST COOK, CONST., FOR A 1952 G.M.C. CARGO TRUCK IN POOR CONDITION AT A PRICE OF $1,425 UNDER ITEM 20 OF SALES INVITATION FOR BIDS NO. 21-2163. RELIEF IS REQUESTED ON THE BASIS THAT THE CONTRACTING OFFICER SHOULD HAVE SUSPECTED A MISTAKE IN THE BID AND REQUESTED VERIFICATION THEREOF PRIOR TO AWARD.
WE HAVE REVIEWED THE ADMINISTRATIVE FILE AND, ON THE BASIS OF THE INFORMATION CONTAINED THEREIN WHICH DISCLOSES THAT THE CURRENT MARKET APPRAISAL OF ITEM 20 WAS $500 AND THE NEXT HIGHEST BID WAS $466.21, IT MAY BE CONCLUDED THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN THE BID OF ERNEST COOK, CONST., AND THAT HE SHOULD HAVE REQUESTED VERIFICATION PRIOR TO AWARD. ACCORDINGLY, THE SALES CONTRACT MAY BE RESCINDED AS RECOMMENDED.