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B-185959 1 (1976-04-16)

handle is hein.gao/gaobaddpf0001 and id is 1 raw text is: DECISDN ~THE COMPTROLLER GEN~ERAL ~>J4OF THE UNITED STATES WASHINGTON. D.C. 20549 FILE: B-185959 DATE: April 16, 1976 MATTER OF: John F. McGreevey & Company, Inc. DIGEST: Contractor whose bid was 50 percent below next low bid and 45 percent below Government estimate may have contract rescinded since no valid and binding contract is consummated where contracting officer knew or should have known of error and neglected to verify bid in accordance with ASPR § 2-406.1. By letter dated February 19, 1976, the Acting Chief Counsel, Office of the Chief of Engineers, Department of the Army, recom- mended that contract No. DACW61-76-B-0032, awarded by the Phila- delphia District Corps of Engineers (Corps), be rescinded. On December 11, 1975, bids were opened for ditch construction and work on wet and soft terrain at Penns Neck Disposal Area, New Jersey. The Government estimate was $15,000, and the two bids received were $8,250 and $16,500. Although the low bid was 50 percent less than the next low bid, and 45 percent under the Govern- ment estimate, the contracting officer made award to John F. McGreevey & Company, Inc. (McGreevey), on December 15, 1975, without requesting that the bidder verify its low bid. By letters dated December 31, 1975, January 5, 1976, and January 21, 1976, McGreevey alleged a mistake in bid and requested that the contract be rescinded. McGreevey maintained that the mistake occurred because it interpreted the procurement to allow the use of a crane with dragline bucket capable of operating on either pontoons or mats. In this regard, 4cGreevey alleges that * * * Terminology in the trade often classifies pontoons and mats as synonymous because they are often used in the water or on the bottom of streams as well as on land. However, the solicitation required the use of a crane which operated only on pontoons and, therefore, McGreevey was advised that its equipment was unaccepta- ble since it operated only on mats. The contracting officer acknowledges that he failed to comply with the provisions of Armed Services Procurement Regulation § 2- 406.1 (1975 ed.) regarding verification of low bids. In addition, - 1 -

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