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B-184151 1 (1975-07-31)

handle is hein.gao/gaobadcko0001 and id is 1 raw text is: OLERC 04 THE COMPTROLLER GENERAL DIECISION OF THE UNITED STATEB 9.' WASHINGTON, D. C. 20549 FILE: B-184151 DATE: July 31, 1975 MATTER OF: American Ship Building Company DIGEST: Payment on quantum meruit or quantum valebant basis is authorized in case of completed contract since contractor, while failing to prove intended bid, did establish ex- istence of error of which contracting officer had con- structive notice. The Coast Guard has requested our approval of the pro- posed reformation of its contract DOT-CGO9-8216(S) with the American Ship Building Company (American) for drydocking and repairs to the USCGC SUNDEW. The proposed reformation re- quested by American because of a mistake in bid would increase the price of contract item C-lD (Sandblast and Paint Under- water Body-100% of total area) from $2,017.62 to $8,620. For the reasons stated below, American may be compensated for the reasonable value of the services and materials fur- nished under the item. Invitation for bids No. CD-8216-75 was issued on August 23, 1974, for the work in question. American's bid ($80,110 for all definite items, $4,013 for all optional items, and $20,625 for all contingency items) was the only one received. On September 24, 1974, American was awarded all definite and optional items (total price $84,123). By telephone conversation on October 4, 1974, item C-lD was awarded to American at the price ($2,017.62) shown in the company's bid for the item. By letter dated October 8, 1974, American advised that past recorded data of hours and material used on similar work had been incorrectly used in computing its price for the item. 'Consequently, the Company requested an adjustment in the con- tract price. -1-

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