B-176874, OCT 12, 1972
Highlights
THE VARIANCE BETWEEN THE BID OF GGP AND THE NEXT LOW BIDDER WAS GREAT ENOUGH TO HAVE PLACED THE CONTRACTING OFFICER ON CONSTRUCTIVE NOTICE OF ERROR. UNDER SOLICITATION NO. 2PN-ND-28172 BE REFORMED ON THE GROUNDS THAT THE CONTRACTOR HAS ESTABLISHED THE EXISTENCE OF A MISTAKE IN BID AND THE BID ACTUALLY INTENDED AND THAT THE UNIT BID PRICE OF $0.92 EACH WAS SO LOW WHEN COMPARED WITH OTHER BIDS WHICH RANGED FROM $1.18 EACH TO $1.52 EACH AS TO PUT THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF MISTAKE. WE HAVE REVIEWED THE ADMINISTRATIVE FILE AND. WE AGREE THAT THE REQUESTED PRICE INCREASE TO $1.15 EACH IS PROPER UNDER THE CIRCUMSTANCES.
B-176874, OCT 12, 1972
CONTRACTS - MISTAKE IN BID - REFORMATION DECISION ALLOWING REFORMATION IN PRICE OF A CONTRACT AWARDED TO GENERAL GUMMED PRODUCTS, INC. (GGP), BY GSA. THE VARIANCE BETWEEN THE BID OF GGP AND THE NEXT LOW BIDDER WAS GREAT ENOUGH TO HAVE PLACED THE CONTRACTING OFFICER ON CONSTRUCTIVE NOTICE OF ERROR. ACCORDINGLY, THE CONTRACT PRICE MAY BE INCREASED AS RECOMMENDED.
TO MR. SAMPSON:
BY LETTER DATED AUGUST 25, 1972, WITH ENCLOSURES, YOUR GENERAL COUNSEL RECOMMENDED THAT A CONTRACT AWARDED TO GENERAL GUMMED PRODUCTS, INC., UNDER SOLICITATION NO. 2PN-ND-28172 BE REFORMED ON THE GROUNDS THAT THE CONTRACTOR HAS ESTABLISHED THE EXISTENCE OF A MISTAKE IN BID AND THE BID ACTUALLY INTENDED AND THAT THE UNIT BID PRICE OF $0.92 EACH WAS SO LOW WHEN COMPARED WITH OTHER BIDS WHICH RANGED FROM $1.18 EACH TO $1.52 EACH AS TO PUT THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF MISTAKE.
WE HAVE REVIEWED THE ADMINISTRATIVE FILE AND, ON THE BASIS OF THE INFORMATION CONTAINED THEREIN, WE AGREE THAT THE REQUESTED PRICE INCREASE TO $1.15 EACH IS PROPER UNDER THE CIRCUMSTANCES. ACCORDINGLY, THE CONTRACT MAY BE REFORMED AS RECOMMENDED.