About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-195358 1 (1979-08-23)

handle is hein.gao/gaobadhnv0001 and id is 1 raw text is: 9 ,_LER - ~~.THE COMPTROLLER GENERAL DECISION . OF THE UNITED BTATES WASHINGTON, 0.C. 20548 FILE: B-195358 OATE:August23, 1979 MATTER OF: Levin Metals, Inc. 7 1. Where contracting officer is on constructive notice of possibility of error in bid and neglects to seek bid verification, contract awarded is subject to reformation or rescission since no valid and binding contract was consummated by acceptance of bid. 2. Clear and convincing evidence of bid actually intended must be submitted to permit reforma- tion, and absent such evidence, rescission is appropriate. The Defense Logistics Agency recommends rescission of Item 2-of Sales Contract No. 41-9103-004 awarded to Levin Metals, Inc. (Levin), for 129,000 pounds of copper base alloy scrap under invitation for bids 41-9103. Levin submitted the high unit bid of $0.4917 for Item 2. After award to Levin, the company alleged that its bid on Item 2 had(been in error and requested that its unit bid be reduced to $0.2917 per pound or, in the alternative, that the contract be rescinded as to Item 2. The next high bid for Item 2 was $0.28599 per pound; the only other bid was $0.2799 per pound and the current market appraisal was $0.36 per pound.) Generally, when a bid has been accepted, the bidder is bound to perform the resultant contract and must bear the consequences of its unilateral mistake. Saligman v. United States, 56 F. Supp. 505 (E.D. Pa. 1944). However, our Office has allowed the rescission or reformation of such a contract where a contracting officer having actual or constructive notice of the possibility of an error neglects to seek verification of the bid, since no valid and binding contract is consummated by acceptance of the bid. 37 Comp. Gen. 685 (1958); Ubique Ltd., B-180610, August 12, 1974, 74-2 CPD 90.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most