Request for Rescission of Contract

A firm requested rescission of its contract with the Department of the Air Force, basing its request on a theory of duress. The invitation for bids (IFB) provided for the quotation of prices on a basic bid item and each of six additive bid items, and specified that award would be made setting forth the standard additive and deductive items clause of Defense Acquisition Regulations. Prior to the opening of bids, $550,000 was available for the project, and award was made to the low bidder, the protesting firm, on the basis of the base bid and all six additives. On the same date that the contract was forwarded to headquarters for approval, a message was received authorizing the award of a contract to the amount of $469,853, the amount of the firm's base bid and four additives. Consequently, the contract was modified by the Air Force deleting the last two items and was forwarded to the firm for acceptance. The protester objected, pointing out that the funding announced prior to bid opening exceeded their bid, and contending that it was, therefore, entitled to an award which included all six items. However, the firm accepted the modified award to avoid forfeiture of its bid bond. In order to receive relief under a theory of duress, a contractor must demonstrate a wrongful act on the part of the Government. Bidders had been placed on notice that, as the result of possible changes in the amount of available funding, the award would not necessarily include all of the additive items and that the Government reserved the right to make an award for a lesser number of additives. GAO concluded that the Air Force's award was legal and valid, and the firm failed to show a violation of contractual rights that would entitle it to the requested relief. The request for rescission was denied.