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B-181512 1 (1974-07-05)

handle is hein.gao/gaobadcdn0001 and id is 1 raw text is: 









FILE: B-181512


  4    THE COMPTROLLER 13ENERAL
,.~ iOF THE UNITED STATES
          ',A/A S - iN GTON .CD  C .2 0548S




                DATE:  July 5, 1974


MATTER OF: Charles bluestone Company, Inc.


DIGEST:


Where ristak-e in bid on item in surplus sales
contract was aliezed after award, and bid for
said item was more than eight times current
market anoraisal, more than 100 times only
other bid for that item, and the bid for the
item was out of seauence with the other bids
submitted by that bidder. there is clear and
convincint evidence of a mistake in bid and
that the contracting officer should have
detected the mistake. GAO will not object to
administrative recou:mendation to delete subject
item from contract.


     Charles Bluestone Company, Inc. (Bluestonel has requested
relief in the form of deletion from its surplus sales contract
of an item for which it has alleged, .after award, that a mis-
take was committed in the submission of its bid.

     The Defense Supply Agency's Defense Property Disposal
Service (DPDS), Columbus, Ohio, offered various items of scrap
for public sale in Invitation for Bids No. 27-4242. The sub-
ject firm submitted bids on ten items, and received an award
on April 8, 1974, for various items, including item 58, adver-
tised as 20,000 pounds of scrap rubber.

     By telephone conversation of April 10, 1974, and by
letter of April 16, 1974, Bluestone advised the contracting
agency of a mistake that had been allegedly committed with
regard to item 58, for which the firm had submitted a unit
price of $.3351.  It was stated that the bid was intended for
item 53, which was 20,000 pounds of brass scrap, but that the
typist preparing the bid inadvertently typed 58 rather than
53.  It was also noted that the subject concern is a wholesaler
dealing exclusively in non-ferrous metals and has no use for
the surplus rubber.

     We are advised that the current market appraisal for item
58 established prior to the sale was $.04 per pound and the
only other bid submitted for that item was in the unit price of


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