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B-179913 1 (1974-01-08)

handle is hein.gao/gaobadcbz0001 and id is 1 raw text is: \ THE CDNIPTROLL.ER GENERAL \ ..OF TH EE UNITLt TATEB r WASHINGTON, D.C. 20548 FILE: B-179913 DATE: January 8, 1974 MATTER OF: General Electric Supply Company DIGEST: Cozntractor whc alleged mistake %n bid after award may hcve contrrct canceled vhere record indicates tht contrcting officer failed to take the proper steps to verify the bid aP required by FFY 1-2,405-1 and therefore no velid and bindinc contrret was effected, Dy letter drted October 15, 1973, the Director, Supply Service, Department of Medicine end Surgery, \cterss Admir.istretion, requested our decision regerding r mistoke in bid alleged fter avrrd by General Electric Supply Company (G). Solicitation Ho. (85-1-73, issued by the VA Hospital,,Weco, Texas, called for six dry typi copper wound transforners wth en twrd to be mde in the aggregete on itemn 1 rend 2. Eide were opencd on Mny 30, 1973, and three firmt respondc to the invitetion with 6ggre- Etf: bids of 3,$S.32, $l,O0.Q00, end (5,060.03, It is reported that the contractinG officer suspected en error in G2's ov bid becnause of the two hieher bids received nnd the Government cstimete of 641,h0. a He therefore &ttcmpted to contrct the individual who sGned th- b.d but yes unable to do so. Thereafter, the contracting officer contpcted the supplice to GE and vort given erroneous information vich led the contracting officer to bclieve that the bidder did intend to furnish copper wound trans- formers as renuired. The record indicetrs thr.t the contrcttrng officer notified GE of eward by c purchse order dated June 19, 1973, but the existence of the mistake crs not discovered until delivery of eluminum rathecr than copper wos.nd transform rs in July 1973, In general, the ecceptce of a bid results in a valid and binding contract unless the contracting officer bed octua.l or constructive notice of the probability of error in the low bid -prior to word, The record indietes that the contracting officer, &lthough on notice of the probability of error in the low bid, failed to take the proper steps to verify the bid as required by section 1-2.6061 of the Federal Procurement Regulations. In view thereof, no valid and binding contrect ics effected. - I T48 1 -FN

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