Request for Rescission of Contract

A firm requested rescission of a contract awarded to it for the sale of industrial diamonds by the Federal Property Resources Service. The record showed that the protester submitted the high bid. However, prior to award, the protester alleged that a typographical error had been made in its bid price and that the bid price should have been considerably lower. In response to a request by the contracting agency for worksheets or other proof of the error, the protester advised the agency that it had no proof that the error existed since all workpapers were shredded at the end of each day. The contract was therefore awarded since no documentary proof was submitted and since the bid was not significantly out of line. After the award was made, the protester submitted two worksheets which showed different unit prices but the same extended price. The protester claimed that this information showed that a mistake was made and further claimed that the contracting agency had previously stated that the lack of evidence to prove the existence of the mistake would not preclude rescission. GAO held that, under Federal regulations, award must be made to the bidder who merely alleges a mistake but is without evidence, unless there are indications of error so clear that an award would be unfair to the bidder or to other bidders. To conclude that an award would be unfair, a determination must be made that award would be unconscionable. While the bid price was 23 percent higher than the highest Government estimate, a differential of this magnitude does not make a contract unconscionable. Accordingly, the request that the contract be rescinded was denied.