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B-185201 1 (1976-01-02)

handle is hein.gao/gaobaddtv0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION I V`7' OF THE UNITED STATES WASHINGTON, D. C. 20548 FILE: B-185201 DATE: January 2, 1976 MATTER OF: Charles and Son Window Cleaning Co. DIGEST: 1. Where there was wide disparity between bids and price for prior year's window washing contract and low bid for current contract requiring substantially more work, contracting officer was on notice of error in bid for which contractor is entitled to relief since no valid and binding contract is consummated where contracting officer knew or should have known of error and neglected to verify bid. 2. Although GAO would not object to relief for contractor that made error in bid, such modification should not exceed amount of next lowest correct bid. The Veterans Administration (VA) has requested our decision regarding an error Charles and Son Window Cleaning Co. (Charles and Son) alleges was made in its bid for window cleaning service at the VetArans Administration Hospital, Perry Point, Maryland. Solicitation No. 641-21-75, issued on August 1, 1974, sought bids for one (1) job to consist of two (2) washings of 2,182 windows and frames. Eight bids received at the September 12, 1974, opening ranged from a low bid of $3,100 submitted by Capitol Building Services, Inc. (Capitol), to a high of $28,900. Since the wide disparity in bids indicated the possibility of a bidding error, the contracting officer requested that the low bidder verify its bid. Verification by Capitol was received by telephone that the bid price was correct and that it intended to perform. The contract was awarded to the low bidder on September 30, 1974. However, by letter dated October 21, 1974, the low bidder advised VA that it could not perform the contract because of its inability to obtain a performance bond. This was allegedly due to the enormous differences in the bid prices. Therefore, VA offered to accept other securities in lieu of the performance bond required if it would complete the contract. No action was taken by the low bidder, and on November 27, 1974, its contract was terminated due to nonperformance. - 1 -

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