Request for Contract Price Adjustment

The agency questioned whether a modification could be made in a contract price in response to an error allegedly made in the bid even though the bidder had twice confirmed that it understood the terms of the contract and could perform at the award price. Because there was a wide disparity between bids and the price for the prior year's contract and the low bid for the current contract requiring substantially more work, the contracting officer was on notice of an error in the bid. Since the agency neglected to verify the bid under these circumstances, the contractor was entitled to relief. However, the price modification may not exceed the amount of the next lowest correct bid.