Request for Correction of Mistake in Bid Under IFB

The Department of the Interior requested the opinion of GAO on whether a company should be allowed to correct an alleged mistake in the bid it submitted under an invitation for bids (IFB). The IFB sought bids to construct overlook and kiosk structures and to re-side metal storage buildings. The company's bid was the only bid received. Since the company submitted a bid that was substantially lower than the Government's estimate, the contracting officer asked the company to verify the bid. In response, the company requested that the bid be increased because on reconsidering the project the company decided that more man-hours would be needed for the overlook and kiosk work than anticipated in computing the bid price. Where a mistake in bid is alleged before the award, the bid may be corrected if the bidder shows by clear and convincing evidence both the existence of the mistake and the bid actually intended. The bid may be withdrawn if the evidence establishes the existence of a mistake but not the intended bid. The rule that allows bid correction does not, however, extend to permitting the bidder to recalculate the bid to include factors which the bidder did not have in mind when the bid was submitted. The rule only allows correction where the facts show that the bidder actually intended to bid an amount other than that entered on the bid form. The record showed that the company's request was based only on the company's recalculation of the effort that it will take to fulfill the contract's requirements, not on the basis that it intended to bid more than it actually did. In the opinion of GAO, the record did not support a finding that a mistake had been made. Accordingly, the company should not be permitted to correct or withdraw its bid.