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B-184249 1 (1975-11-14)

handle is hein.gao/gaobadcsy0001 and id is 1 raw text is: 5 kt~tL THE COMPTROLLER GENERAL DECISION (~~OF THE UNITED STATE~S WASHINGTON, D.C. 20548 FILE: B-184249 DATE:November 14, 1975 MATTER OF: R. E. Lee Electric Co., Inc. DIGEST: When mistake in bid is alleged after award, no reformation of the contract is granted where mistake was unilateral and contracting officer was not on actual or constructive notice of mistake in bid of low bidder. Invitation for bids (IFB) No. N62467-74-B-0184 was issued by the Southern Division, Navy Facilities Engineering Command (NAVFAC) for sewage system improvements at the Marine Corps Recruit Depot, Parris Island, South Carolina. The two lowest bids of the fifteen received were from R. E. Lee Electric Company, Inc. (Lee) at $201,386.00 and Tesco Inc. (Tesco) at $219,473.00. Award was made to Lee for the basic item and all three additive items in the amount of $201,386.00. Shortly after award, Lee alleged that a mistake in its bid had been caused by a mathematical error made by a subcontractor, who had provided a price on the basis of one unit of an item whereas four units should have been quoted. Lee requested that the Navy reform its contract by increasing the price in the amount of $15,506.00 plus additional costs for sales tax and allowed mark-ups. The Navy requested a decision from this Office as to the propriety of reforming the contract. When a mistake is alleged after award of a contract, our Office will grant relief only if the mistake was mutual or the contracting officer was on actual or constructive notice of a unilateral error prior to award. Armed Services Procurement Regulation (ASPR) § 2-406.4 (1974 ed.); 30 Comp. Gen. 509 (1951). We have held that no valid and binding contract is consummated where the contracting officer knew or should have known of the probability of error, but failed to take proper steps to verify the bid. 37 Comp. Gen. 685 (1958); 17 Comp. Gen. 575 (1938); Fritz A. Nachant, Inc., B-181028, July 11, 1974, 74-2 CPD 24, affirmed upon reconsideration October 21, 1974, 74-2 CPD 216. In determining whether a contracting officer has a duty to verify bid prices we have stated: - 1 - r.

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