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B-184738 1 (1975-11-11)

handle is hein.gao/gaobadctk0001 and id is 1 raw text is: 

                       N
                             TH   COIViPTROLLER GENERAL
                             OF   TH*E   UINITED     STAT   ES
                             VAASHINGTON, D. C. 20548




FILE:  B-184738                     DATE:   November 11, 1975

MATTER OF: Myers New Steel & Metals, Inc.


DIGEST:

    Where bid price on contract item was approximately
    100 percent higher than current market price and
    contracting officer was aware that item purchased
    was totally unrelated to bidder's business, con-
    tracting officer should have been on notice of
    possibility of mistake prior to award and should
    not have accepted bid without verification.
    -Recission of contract as recommended by agency may
    be allowed.

    The Office of the Federal Supply Service, General Services
Administration (GSA), requests our decision as to the propriety
of  the proposed recission of GSA sales contract No. GS-04-
FW(S)K5-0002 with Myers New Steel & Metals, Inc. (Myers), of
Tallahassee, Florida.  The sale was awarded on April 24, 1975,
for Item 3, one lot of used IBM cards, estimated weight 10 tons,
for a price of $2,505.00.

    By letter dated May 5, 1975, Myers notified GSA that due to
 a typographical error it had mistakenly bid on Item 3 instead
 of Item 4, scrap aluminum. As evidence of the error, Myers
 submitted its bid preparation papers which show the figure
 $2,505.00 (the figure bid on Item 3) beside the encircled Item 4.
 Myers further alleges that since it engages in the scrap metal
 business and not scrap paper business, it is apparent that it
 intended to bid on Item 4 (scrap metal) and not Item 3 (IBM
 cards).

    The abstract of bids shows that there were 11 bids on Item 3,
 ranging from the high bid of $2,505.00 submitted by Myers to a
 low bid of $50.00. Although the second high bid was $2,000.00,
 the average bid of the other 10 bidders was $519.52. In addition,
 it is reported that Myers' bid price was about 100 percent higher
 than the current market price of used IBM cards (approximately
 $1,200 for 10 tons).


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