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B-185400 1 (1976-03-02)

handle is hein.gao/gaobaddez0001 and id is 1 raw text is: S'k - 1 THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, D.C. 2O548 FILE: B-185400 OATE:March 2, 1976 MATTER OF: Westinghouse Electric'Corporation DIGEST: 1. Bidder who alleged mistake in bid after award may have contract rescinded without liability because contracting officer should have been on constructive notice of possible error and should have requested verification since only other bid was 240 percent highdr than low bid and low bid was 11 percent below Government estimate. 2. Where contractor's worksheets substantiate claim of mistake in bid but do not clearly and convincingly establish intended price, proper remedy is rescission rather than reformation. Invitation for bids (IFB) DS-7125 was issued on April 8, 1975, by the Bureau of Reclamation, Department of the Interior, for a 230-kilovolt power transformer. At bid opening on June 19, 1975, two bids were received: Westinghouse Electric Corporation (Westinghouse) submitted a bid of $221,730 and the General Electric Company (GE) submitted a bid of $530,114; the Government estimate was $250,000. On June 27, 1975, a contract was awarded to Westinghouse. Thereafter, by letter dated June 30, 1975, Westing- house advised the Bureau of Reclamation of an alleged mistake in its bid. Pursuant to Federal Procurement Regulations § 1-2.406-4(i) (1964 ed. circ. 1) the case was forwarded to our Office for resolution. Westinghouse alleges that the mistake occurred as follows: Originally, Westinghouse prepared its bid in response to a previous solicitation for a similar transformer. Ultimately, Westinghouse decided not to submit a bid for this unit because of certain tech- nical requirements in the solicitation. It is unclear from the record whether Westinghouse, in preparing its bid, intended to apply a 0.60 multiplier to the book list price of its transformer or a 0.70 multiplier. (A multiplier is a numerical percentage, expressed in decimal form, which the seller's list price is multiplied by to yield the customer's actual price.) In any event, a 0.60 multiplier was applied to the book list price of the unit under the first solicitation. Subsequently, in the preparation

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