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B-186004 1 (1976-04-06)

handle is hein.gao/gaobaddqc0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISI 1N OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-186004 DATE: April 6, 1976 MATTER OF: Graybar Electric Company, Inc. DIGEST: Contracting officer was on constructive notice of possible mistake in low bid and should have requested verification of prices which were different from price bid on same item elsewhere in solicitation. Prices submitted by low bidder were 37 percent below those of next low bidder, whose prices were 22 percent below those of high bidder. Since documentation submitted by low bidder does not clearly and convincingly prove any intended bid prices, rescission rather than refor- mation of contract would be permissible. The Director, Supply Service, Department of Medicine and Surgery, Veterans Administration (VA), has submitted the following matter to our Office for decision as a doubtful case. Solicitation No. 516-19-76 was issued by the VA Center in Bay Pines, Florida, for various numbered items of electrical material. Graybar Electric Company, Inc. (Graybar), was notified that it had been awarded seven of the numbered items. By telephone and by letter, the contracting officer was advised by Graybar that it had mistakenly quoted solid copper wire prices on the awarded item Nos. 43-46 instead of prices for the required stranded copper wire. With the letter, Graybar submitted the pricing schedule of a supplier and work papers. According to Graybar the bid prices for the four items calling for stranded copper wire had been computed from a solid copper wire list price of $28.96 per 1,000 feet (the solicitation called for quotes on rolls of 500 feet). That price was multiplied by a 0.7500 supplier discount factor to arrive at the price of $21.72 per 1,000 feet which was twice successively dis- counted by 5 percent to $19.60, or $9.80 per 500 feet. Finally, Graybar added a 1-percent profit factor to reach the quoted price of $9.90 per 500 feet. The supplier's list price for stranded copper wire was $36.91. Subjecting that price to the above calculations, Graybar states * * * we should have quoted the items at $25.23 - 1 -

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