Request for Contract Reformation

In responding to a request for verification of its bid, a contractor replied that it had erred in its bidding when it omitted the cost of certain equipment. By furnishing information to support this claim of error, the contractor established both the mistake and the exact price intended. However, the agency determined that the contractor could not establish its intended price because all evidence of price was generated after bid opening. Rather than withdraw its bid, the contractor waived the error and accepted the award at its original price. Subsequently the contractor requested the agency to issue a change order to increase the contract amount or delete the disputed requirements with no reduction in contract price. GAO held that in accepting the award at its original bid price the contractor understood that the award included the disputed requirements, and that neither party lacked knowledge concerning the terms of the contract. The contract expressed the final understanding of the parties, and there was no legal basis which would allow relief in the nature of contract reformation based on a mistake in bid. Since the contractor had indicated it would still make a profit on this contract, the request for contract reformation was denied.