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Claim Alleging a Mistake in Bid After Contract Award

B-192169 Dec 22, 1978
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Highlights

Claimant alleged a mistake in bid after contract award for alterations at a Veterans Administration hospital because he was not aware that the Government intended to release the fifth floor worksite in partial increments rather than as a total entity. The contracting officer stated that he had no reason to suspect a mistake in bid even though there was a considerable disparity among the bids and claimant's bid was much lower than the next low bid. When the contractor called the contracting officer inquiring as to the low bidder, the amounts of the other bids, and the Government cost estimate, the contracting officer did not divulge the amounts of the other bids, the large disparity in bidding, nor the amount of the Government estimate. Request for verifications of claimant's bid was inadequate; therefore, under these circumstances, acceptance of the bid did not consummate a valid and binding contract. Normally the contract would be rescinded; since the claimant has already performed the contract, however, he may be paid the reasonable value of his services not to exceed the price that was offered by the second low bidder. GAO may consider the claimant's claim of mistake, even though the contracting agency board of contract appeals rejected the claimant's defective specifications claim.

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