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B-178402 1 (1973-10-01)

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*                     COMPTROLLER GENERAL. OF THE UNITED ItfATES
                                WASHINGTCN.C. £10S48


       B47002October 1 1973

                   I

       A, C, &P3I'I Cooany
       1697 Industrial I-ad
       Ban Carlos, California 94070
           Attention: Richard Do Mets
                       Assistant Treanru
       Gentlemen:

            Further reference in rmde to your letter .f April 5, 1973, ith
       enclosUres,' requestIis relief from contract! N4, DAAY373C(28,
       awarded by the A.y Weapons nConand, Roc* Islaid, Illinois, under
       invitation for bids No, DAA?03-72-BD1595 issued June 2, 1972v

            The invitation solicited bids for 124 intorr r ring gears for
       tanks, Eleven timely bids were received  ranstng Ln price with
       firEt article approval from4 your bid of k212#50 per ring gear to a
       bid of .0Co,00 per ring gear. On July 25, 1.97, yvu were awarded a
       contract with first article approval for a tote;. tmount of $26,350.00.

           You refused to undertaks perforrance of the :ntrst and in a
       latter of Gepteber 28, 1.72, to the contracting .fflcer requested
       either rescinsion or reformation based upon a clainmed miuitake in bid.
       By nftice dated December 20, 1972, the contracting officer terudnated
       the contract for default.

            By lettt r dated Janouwy 8, 1973, you anpealod the deftault termi-
       nation to the Armed Servineo BaxA of Contract Appeals (AtE), and
       simultaneouasly requested t .at the contracting offt.er refor your
       appeal to our Office for &scioinn. On February 16, 1973, the Board
       advised you that it would lefer action on the ap.ea pendtng a decision
       by our Office on the question of the o xtstence of a valid crntract.
       In theie circur.atances, an since the question to be deeide is one of
       law, we deem Zt appropria-.t for our Office to consider the mnttea.   ..

           You request resolcuton of the contract on the grounds %hat pou
       tae a mistake in bid and that the Government knew or should have kno n
       of the mistake before the bid was accepted for award. You re irr to
       your letter to the contracting officer dated Iepteobwr W3, 197E2, stating
       that toolina costs of aorroximatelvA t.250 war& not f .ltitfd In the


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