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B-183600 1 (1975-06-09)

handle is hein.gao/gaobadcik0001 and id is 1 raw text is: 1, THE COMPTROLLER GENERAL D aIm .SN . OF THE UNITED STATES WASHINGTON, 0.C. 20549 FILE:B-183600 DATE: June 9, 1975 MATTER OF: American Society of Mechanical Engineers DIGEST: The Coast Guard negotiated a contract with the American Society of Mechanical Engineers (ASME) for the purchase of manuals. ASME's established policy of offering either membership or quantity discounts, but not both, was accepted by the requisitioning activity. However, in reducing the agreement to writing, the Coast Guard applied both the quantity discount and the member dis- count. ASME executed the contract without detecting the error. The facts presented are sufficient to prove mutual mistake, and reformation of the contract is accordingly allowed. The Coast Guard has requested our approval of the proposed rcformation of iL concract DOT-CG-5047-A with the American Society of Mechanical Engineers (ASME) for sets of publications which comprise the ASME Boiler and Pressure Vessel Code. The record shows that the ASME, which is the sole source of the Code, had published list prices for each volume. ASME members were entitled to a 20 percent discount from the list price. ASME also offered quantity discounts ranging from 30 to 40 percent of list price for large volume purchases. The member- ship and quantity discounts were alternative, not cumulative, a fact which was known to the Coast Guard requisitioning activity. The requisitioning activity's price estimate of $31,500 was de- rived by subtracting a 30 percent quantity discount for Items 1 a. through h., of which over 100 copies each were needed, and by subtracting a 20 percent membership discount for Items 2 a. through m., of which from 1 to 3 copies of each were needed. Although ASME initially proposed to furnish the Code at the nonmembers list price, after discussions with the Coast Guard, ASME agreed that the members discount would be applicable to the procurement. The Coast Guard then prepared a Standard Form 26, Award/Contract for the contractor's signature. - 1 -

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