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B-185096 1 (1975-11-25)

handle is hein.gao/gaobadcsa0001 and id is 1 raw text is: o THE CDMPTROLLER GENERAL SIC3IN OF THE UNITED STATES WASHINGTON,.0D.C. 20548 --185096 DATE: November 25,1975 R OF: United Tire & Rubber Co. sale of Government surplus scrap rubber, where successful _ was 27 times greater on one item and 3 times greater on other item than next highest bidders on those respective ems, contracting officer was on constructive notice of -ssible error in bid; therefore, sales contract may be acinded since bid verification was not sought prior to ird. -;s decision involves a mistake in bid by United Tire and 0. (United) alleged after an award to it of items 42 and iius scrap rubber), under sales contract No. 41-5326-091. tng Assistant Counsel, Headquarters, Defense Supply Agency, rrence with the Defense Property Disposal Service, recom- a recision of the'sales contract by his letter of October 8, the ground that United's intended final bid of $0.003 per as mistakenly transmitted by Western Union as $0.03 per pound. connection, it is noted that United's bid was 27 times than the second highest bid for item 42, and 3 times greater a second highest bid for item 53. Therefore, it was con- that the disparity was large enough to put the contracting on notice of possible error, but he neglected to take proper o verify the bid. March 3, 1975, a telex modification was sent by United Nestern Union which apparently increased its bid on items 3 to $0.03 per pound. On March 10, 1975, the award on these s made to United on the basis of the following bids received: Bidder Unit Bid/lb. Total Bid 91 (United) $ .03 $2,250.00 116 .00111 83.25 91 (United) .03 1,800.00 58 .0095 570.00 '76 .005 300.00 116 .00321 192.60 122 .0026 156.00 106 .00251 150.60 - 1 -

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