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B-185140 1 (1976-03-02)

handle is hein.gao/gaobaddey0001 and id is 1 raw text is: Q pTHE COMPTROLLER GENERAL DECISION .. OF THE UNITED STATEL WASHINGTON, D.C. 20548 FILE: B-185140 DATE: March 2, 1976 MATTER OF: Sunset Construction Company DIGEST: 1. Request for rescission of contract due to mistake in bid alleged after award is granted since contracting officer suspected error and requested verification of low bid but failed to adequately discharge verification duty in accordance with FPR § 1-2.406-3(d)(1) by ad- vising low bidder of next low bid, and of noticeable variance between low bids received and Government estimate. 2. Where contracting officer reasonably determines that evidence submitted in support of request for correction of bid is not sufficient under regulation to permit correction, GAO has no basis for disagreeing with such determination. The Veterans Administration (VA) has requested a decision as to whether an alleged mistake in bid by the Sunset Construction Company (Sunset) may be corrected after contract award. This matter was submitted pursuant to Federal Procurement Regulations (FPR) § 1-2.406-4(j) (1964 ed. circ. 1), which provides for con- sideration by this Office of doubtful cases involving possible correction of a mistake in bid price. Invitation for bids (IFB) 600-91-75 was issued as a small business set-aside for construction work involving modification of the cage wash area in building 87 at the VA Hospital, Long Beach, California. The Government estimate for this work was $20,517.00. At bid opening on June 19, 1975, the R. A. Stillman Construction Co. (Stillman) submitted the low bid of $5,219.00. The six remain- ing bids received were: $6,541.00, $9,577.00, $9,950.00, $14,300.00, $16,800.00 and $18,400.00. In view of the Government estimate of $20,000.00 and the disparity in the bids received, the contracting officer suspected the possibility of error and requested that Stillman verify its low bid. Stillman's subsequent allegation of a mistake in the amount of $1,900.00 resulted in VA allowing withdrawal of its low bid. - 1 -

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