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B-183754 1 (1975-06-09)

handle is hein.gao/gaobadcil0001 and id is 1 raw text is: 

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                             THE  COMPTROLLER GENERAL
DECISION         .           OF   THE UNITED STATES
                             WASHINGTON, 0.C . 2054E9




FILE:  B-183754                    DATE: June 9, 1975

MATTER OF:       Harvey Clark


DIGEST:

     In sale by Government of surplus scrap metal, difference
     between successful bid of $0.25 per pound, current
     market appraisal of $0.04 per pound, and successive
     bids ranging from.$0.0439 per pound to $0.0126361 per
     pound as well as obvious inconsistency between suc-
     cessful bidder's unit price and $24.04 total price
     should have placed contracting officer on constructive
     notice of possible mistake in bid prior to award and
     therefore contract may be canceled.


     By letter dated April 21, 1975, the Acting Assistant Counsel,
Handquarters, Defense Supply Agny    eoeddt       our Ofc
that Sales Contract No. 41-5265-187 awarded to Harvey Clark on
item 70 be rescinded.

     Item 70 consists of 9,620 pounds of miscellaneous scrap
metal.  Clark's bid indicates a unit price for item 70 of $0.25
and a total bid price for this item of $24.04. The sales con-
tracting officer failed to notice the inconsistency between the
unit and total prices and awarded item 70 to Clark at its high
bid price of $0.25 per pound for a total contract price of $2,405.

     In a letter to the Defense Property Disposal Region Office
submitted after award, Clark alleged that it intended to bid a
total price for item 70 of $24.05. This would indicate that
Clark intended to bid $0.0025 per pound for item 70.

     The other eight bids for the scrap ranged from $0.0439 to
$0.0126361 per pound. The current market appraisal was $0.04
per pound.

     In the sale of Government scrap, where there are substantial
disparities between the high bid and the range of successive
bids and the high bid and the current market appraisal, our Office
has held that the sales contracting officer is on constructive
notice of a possible mistake and should request verification of
the high bid prior to award. Acme Refining-Smelting Company,


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