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B-190177 1 (1977-10-12)

handle is hein.gao/gaobadfem0001 and id is 1 raw text is: 4 Joseph Notopoulos THE COMPTROLL ER GNIVIfRAL PL 2 C ECISION =:r..y./ aF THE uNiUa STATES wAswINTON. o.c 4ose I FILE; B-190177 DATE: October 12, 1977 o MATTER OF: Marris Herring Construction Company, In.c. DIGEST: Where bid substantially lover than Government estimate and other bids is varifked and bidder offers plausib~e explanation for low bid, acceptance of bid results in binding contract notwithstanding contractor's subsequent allega- tion of mistake. Moreover, there is no basis for providing rescission cf contracc since under circumstances contract is not uncon- scionable. The Department of Apriculture, Forest Servicc, has requested our decision as to the propriety of the proposed rescission of a contract with the Norris Ilerring Construction Company, Inc. (Herring), on the basis of c mistake in bid alleged after award. Forest Service advises that the evidence presented by the contractor is not clear and convincing as to either the mistake or the intended bid, but suggests that due Lo the Ereat price disparity between the alleged erroneous bid, the Government's estimate and other bids which are respectively 20, 65, 70 and 170 percent above the low bid, a contract at the bid price might be unconsciinable. The record shows that bids for the construction of Mc~urtery Hollow Road 06035, Ouachita National Forest, were opened June 17, 1977. Herring submitted the low bid of $127,729.47. The Forest Service estimate for the project was $154,432.00 and the other bids were $210,920.85, $216.236.23, and $354,110.54. Because of the disparity between Herring's bid and the Forest Service estimate and the other bids received, the contracting officer called to Herring's attention at the bid opening the possibility of an error In its bid. Herring advised that its first estimate was $147,000 (approximately $7,000 below -1- I I

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