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B-185257 1 (1975-12-09)

handle is hein.gao/gaobadcqo0001 and id is 1 raw text is: 



                           i THE  COMPTROLLER GENERAL
DE   CISlI   tN  -           OF   THE    UNITED      STATES
                             WASHINGTON, D. C. 20548
                    -S.;IT 01


FILE:     B-185257                 DATE: December   9, 1975

MATTER OF:       L&R Crane Hoist Corporation               -4-7(o g


DIGEST:

            Recission of contract for sale of surplus
            property is allowed where it is shown that
            contracting officer was on constructive notice
            of possibility of error and did not verify.bid
            prior to award.


     The Defense Supply Agency (DSA) has requested .our approval
of the proposed recission of sales contract No. 31-5420-180 with
the L&R Crane Hoist Corporation (L&R) for a 1952 truck. The
proposed recission was requested by L&R, since it allegedly intended
to bid on item 32 (an electric hoist) rather than on item 36 (a 1952
truck) under invitation for bids 31-5420 issued by the Defense
Property Disposal Service for the sale of surplus property.

     The contract was awarded on June 20, 1975, without verifica-
tion of the bid.  By.telephone conversation on June 23, 1975, with
the contracting officer, L&R alleged that award of item 36 to it was
in error.  By letter of July 8, 1975, L&R stated that it did not
have any use for the truck and that it always bid on items such as
hoists or overhead electrical cranes only. Item 36 was described
as follows in the solicitation:

     RESIDUE, TRUCK: 2-1/2 Ton, 1952 GMC model M135,
     serial 10137, 6x6, wheel size 20. Major parts
     attached:  engine block, winch, cab, less cover,
     bed, 1 front axle, 2 rear axles, rear wheels and
     transmission. Parts detached but included:  left
     front fender, 4 rims, 3 drums, 1 drive shaft.
     FSN 2320-835-8352. CP # 426.

     Outside OPENSTOGE - Used - Poor Condition
     Repairs Required
     Total Cost $300
     Est. Total Wt. 15,000 lbs.       1 EACH


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