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B-184257 1 (1975-07-22)

handle is hein.gao/gaobadclf0001 and id is 1 raw text is: - % 4F C0M~0'!; GENEPAL M MC~ S = 1_ - M~ T-~ U N iT E STATES FILE: 3-184257 CATE: July 22, 1975 7 7 3V? MATTER OF: Skmart Aviation, Inc. Invitation for aircraft services requested basic per hour bids up to guaranteed monetary minimum on one item and reductions from basic bids for services in excess of minimum. Where contracting officer failed to verify low bid containing apparent inconsistency, i.e.,sane bid price for two items raising clear possibility of error in either basic bid price or bid price reduc- tion in view of improbability of furnishing services beyond minimum at no cost, acceptance of bid did not result in valid and binding con- tract, since'contracting officer was on construc- tive notice as to possibility of mistake. By letter of June 19, 1975, with enclosures, the Deputy Director, Office of Operations, United States Department of Agriculture, Office of the Secretary, requested a decision with respect to a bid mistake alleged by Skymart Aviation, Inc. (Skymart). The Forest Service in Bozeman, Montana, issued an invitation for bids (IFB) for furnishing fully operated aircraft services at Great Falls, Montana. The IFB called for bids on items 1A and 1B. Item 1A requested the bid price per flight hour up to and includ- ing the guaranteed minimum aggregate amount of $8,000 worth of services purchased during the contract period. Item 12 requested the bidder's offered reduction, if any, in bid price per flight.hour after the aggregate amount of services purchased under item lA equalled $8,000. The IFB clearly indicated that the entry under item lB would be interpreted as the amount to be deducted from the per hour price bid under item lA. At bid opening on April 18, 1975, eight bids were received as follows: - 1 -

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