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B-185093 1 (1976-01-02)

handle is hein.gao/gaobaddtu0001 and id is 1 raw text is: 


                            p THE   COMPTROLLER GENERAL
  DECISI      ll  .           OF   THE     UNITED      STATES
                               WASHINGTON, 0. C. 20546




  FILE:   B-185093                   DATE:     January 2, 1976

  MATTER   OF:     Eveready Machinery Company


  DIGEST:

     Where contracting agency admits that contracting officer
     should have been on notice prior to award of possibility
     of error in bid modification since telegraphic bid modifi-
     cation for surplus sale listed 38 items in ascending
     sequence except for contested Item 12, which was listed
     between Items 111 and 113, contract awarded for Item 12 at
     price increased by modification is rescinded.


     Invitation for bids (IFB) No. 27-5312 was issued by the
Defense Property Disposal Service (DPDS) for the sale of 322
different numbered items of machine tools, shop equipment, and
special industry machinery. Eveready Machinery Company (Eveready)
submitted bids on a number of the items. Its bids wcrc listed on
an invitation page with the bid price item number listed on the
same line.  The items were listed in ascending numerical order
with three of the listed items (Items 13, 14 and 127) out of
sequence.  Furthermore, the bid included a telegfaphic modifica-
tion received before the May 29, 1975 bid opening, which listed
38 of the items in numerical sequence, except for Item 12, which
appeared in the telex after Item 111 and before Item 113. With
regard to Item 12, the telex modification stated that $1,000
should be added to Eveready's bid for that item.

     Item 12 was listed in the sales invitation as a Shearing
and Squaring Machine in poor condition, total cost of $3,664.
Eveready's listed price in the invitation page for Item 12 was
$199.99.  Adding $1,000, the total bid price became $1,199.99,
at which price Eveready was the high bidder for Item 12, the
next low bids being $757 and $555. Accordingly, on June 5, 1975,
Item 12 was awarded to Eveready for $1,199.99.

     On June 9, 1975, Eveready's president telephoned DPDS,
stating that the telegraph company had made a mistake in trans-
mission.  A follow-up letter from the contractor stated that the



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