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B-185255 1 (1975-11-28)

handle is hein.gao/gaobadcrg0001 and id is 1 raw text is: I-ER ~ THE COMPTROLLER GENERAL DECISION . O= THE UNITED STATES WASHI.NGTON. D. C. 20548 FILE: B-185255 DATE: November 28, 1975 MATTER OF: Commercial Metals Company DIGEST: Purchaser whose bid price for item 2 of $0.1709 per pound was 244 percent greater than next highest bid of $0.0698 per pound and 170 percent greater than current market appraisal of $0.10 per pound may have sales contract reformed by deleting item since con- tracting officer was on constructive notice of possibility of mistake in bid because of wide price variations which are not normally encountered in sale of scrap, and should have requested verification of bid before acceptance. This decision involves a mistake in bid by Commercial Metals Company (Commercial) alleged after an award to it of item 2 (surplus magnetic and nonmagnetic stainless steel), under sales contract No. 41-5495-202. The Acting Assistant Counsel, Headquarters, Defense Supply Agency, in concurrence with the Defense Property Disposal Service, recommends the reformation of the sales contract by deleting item 2 therefrom. The award on item 2, described as 75,000 pounds of magnetic and nonmagnetic stainless steel, was made to Commercial on July 3, 1975, at their bid price of $0.1709 per pound. By letter postmarked July 2, 1975, and received by the contracting officer on July 7, 1975, Commercial alleged a mistake in its bid for item 2. Commercial alleged that the mistake occurred during their prebid inspection when the material offered under item 2 was confused with similar material offered under item 13 (22,600 pounds of nonmagnetic stainless steel scrap). Generally, when a bid has been accepted, the bidder is bound to perform the resultant contract and must bear the consequences of its unilateral mistake. Saligman et al. v. United States, 56 F. Supp. 505 '(E.D. Pa. 1944). However, our Office has consistently allowed the recision of such a contract where a contracting officer having actual or constructive notice that the bidder made a mistake neglects to verify the bid. 37 Comp. Gen. 685 (1953); Ubique Ltd., B-180610, August 12, 1974, 74-2 CPD 90. - 1 -

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