B-182385, NOV 7, 1974
Highlights
CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF POSSIBILITY OF MISTAKE IN HIGH BIDDER'S PRICES ON TWO ITEMS OF $900 EACH BECAUSE HIGH BIDDER'S PRICE WAS SEVEN TIMES HIGHER THAN NEXT BIDDER'S. $400 ABOVE PREDETERMINED FAIR MARKET VALUE AND ITEMS WERE IN POOR CONDITION. INCLUDING ITEMS 100 AND 101 WHICH WERE FOR USED SNOW PLOWS REQUIRING REPAIRS. AWARD WAS MADE TO WOODARD ON ITEMS 100. THE FOLLOWING BIDS WERE RECEIVED ON THESE TWO ITEMS: ITEM 100 ITEM 101 $900.00 (WOODARD) $900.00 (WOODARD) 121.00 BIDDER A 121.00 BIDDER A 102.87 BIDDER B 102.87 BIDDER B 75.00 BIDDER C 75.00 BIDDER C 56.00 BIDDER D 18.19 BIDDER E 18.13 BIDDER E HOWEVER. NOTWITHSTANDING (1) THE APPARENT DISPARITY BETWEEN WOODARD'S BID AND THE NEXT HIGH BIDDER'S (WOODARD'S PRICE WAS OVER SEVEN TIMES THE NEXT HIGH BID).
B-182385, NOV 7, 1974
IN SURPLUS SALE, CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF POSSIBILITY OF MISTAKE IN HIGH BIDDER'S PRICES ON TWO ITEMS OF $900 EACH BECAUSE HIGH BIDDER'S PRICE WAS SEVEN TIMES HIGHER THAN NEXT BIDDER'S, $400 ABOVE PREDETERMINED FAIR MARKET VALUE AND ITEMS WERE IN POOR CONDITION. IN THESE CIRCUMSTANCES, AND IN ABSENCE OF BID VERIFICATION, CONTRACT FOR MULTIPLE ITEMS SHOULD BE REFORMED TO DELETE SUBJECT TWO ITEMS.
R. G. WOODARD, INC:
INVITATION NO. 8FWS-74-144 ISSUED BY THE GENERAL SERVICES ADMINISTRATION ADVERTISED FOR SALE 193 LINE ITEMS OF MISCELLANEOUS PROPERTY.
WOODARD BID ON 26 ITEMS, INCLUDING ITEMS 100 AND 101 WHICH WERE FOR USED SNOW PLOWS REQUIRING REPAIRS. ON JUNE 27, 1974, AWARD WAS MADE TO WOODARD ON ITEMS 100, 101, 103, 162, 165, 181, AND 185. SUBSEQUENTLY, ON JULY 3, WOODARD ADVISED THE CONTRACTING OFFICER THAT IT HAD NOT INTENDED TO BID ON ITEMS 100 OR 101 AND THAT A MISTAKE HAD BEEN MADE.
THE FOLLOWING BIDS WERE RECEIVED ON THESE TWO ITEMS:
ITEM 100 ITEM 101
$900.00 (WOODARD) $900.00 (WOODARD) 121.00 BIDDER A
121.00 BIDDER A 102.87 BIDDER B 102.87
BIDDER B 75.00 BIDDER C 75.00 BIDDER C 56.00
BIDDER D 18.19 BIDDER E 18.13 BIDDER E
HOWEVER, NOTWITHSTANDING (1) THE APPARENT DISPARITY BETWEEN WOODARD'S BID AND THE NEXT HIGH BIDDER'S (WOODARD'S PRICE WAS OVER SEVEN TIMES THE NEXT HIGH BID), (2) THE FACT THAT WOODARD'S BID WAS $400 ABOVE THE PREDETERMINED FAIR MARKET VALUE OF EACH ITEM, AND (3) THE FACT THAT THE PLOWS WERE IN POOR CONDITION, THE CONTRACTING OFFICER DID NOT SEEK TO VERIFY THE BIDS.
UNDER THE CIRCUMSTANCES, WE CONCUR WITH THE AGENCY THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE POSSIBILITY OF AN ERROR AND THAT AWARD TO WOODARD OF ITEMS 100 AND 101 SHOULD NOT HAVE BEEN MADE IN THE ABSENCE OF VERIFICATION. MATTER OF BEN LISSAUR, B 181836, AUGUST 2, 1974; MATTER OF WINSOR METAL PRODUCTS, B-180187, JANUARY 29, 1974. IN SIMILAR SITUATIONS, WHERE BIDDERS HAVE SUBMITTED EXTREMELY HIGH PRICES FOR ITEMS WHICH THEY ALLEGE THAT THEY NEVER INTENDED TO BID UPON, OUR OFFICE HAS ALLOWED DELETION OF THOSE ITEMS FROM THE RESULTING CONTRACT CONTAINING MULTIPLE ITEMS. MATTER OF MISSLER GIBSON CONTRACTING, B-181018, MAY 13, 1974; B-175734, JUNE 1, 1972.
ACCORDINGLY, WOODARD'S CONTRACT SHOULD BE REFORMED TO DELETE ITEMS 100 AND 101.