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B-193396 1 (1979-07-09)

handle is hein.gao/gaobadhjo0001 and id is 1 raw text is: 






                        THE  COMPTROLLER GENERAL
DECISION                OF   THE   UNITED STATES
                        V/ASHINGTON. O  C. 20548


FILE:~ B-193396


r-IA-~. ~ 10e


MATTER   OF: Handy Tool & Manufacturing Co.. Inc.   0


DIGEST:


     Even if bid of large business is disregarded
     in looking at disparity among bids received
     under small business set-aside, circum-
     stances were not such as to place con-
     tracting officer on constructive notice
     of the probability of mistake. Therefore,
     contract may not be rescinded on basis of
     mistake in bid alleged after award.

     Handy T p1&.gqufacturing  Co., Inc.  (Handy)
has &quest W   escission- f a contract on the basis of
a mistake in bid allege  after award. For the reasons
stated below we believe the contract may not be
rescinded.

     Invitation for bids (IFB) No. DLA 700-77-B-1288
(totally set aside for small business concerns) was
issued August 18, 1977, for 1200 spur gears. The gears
were described by six drawings listed in the IFB Schedule,
but not physically attached to the solicitation. Handy's
bid was the lowest received. Handy was not requested
by the contracting officer to confirm its bid and
on October 31, 1977, it was awarded contract No. DLA
700-78-C-0253.  First delivery of the spur gears was
to be by April 29, 1978.

     By letter dated April 28, 1978, six months after
award and one day before the first scheduled delivery,
Handy contacted the agency alleging a mistake in bid.
Handy stated that it did not have enough time to obtain
the drawings prior to the bid opening date, so it bid
in ignorance of them.  Upon receipt of the drawings
after award, Handy said, it discovered many close
tolerances and that the gears required 100 percent
functional testing.  Handy's alleged mistake was that
it elected to bid before seeing the drawings, which
described an item more difficult and expensive to
manufacture than Handy anticipated.


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