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B-196711 1 (1979-12-19)

handle is hein.gao/gaobadhuu0001 and id is 1 raw text is: LER I1Z32-7 THE COMPTROLLER GENERAL DESCISIDIN OF THE UNITED STATES WASHINGTON, D. C. 20548 FILE: B-196711 DATE: December 19, 1979 MATTER OF: Mid-South Specialties,.Inc. DIGEST: No legal basis exists for reformation of contract based on mistake-in bid discovered after award where con- tracting officer notified low bidder of basis for suspicion of error in bid and requested verification since acceptance of verified bid resulted in valid and binding contract. The Veterals Administration (VA) request pinion areformation of contact No. V 21C- 237 awarded to Mid-South Spe 'alties, Inc. (Mid-South) by the Veterans Administration because of a mistake in bid discovered after award. The contract is for tuck- pointing and waterproofing of three buildings at the VA Medical Center, Mountain Home, Tennessee. Mid-South allegedly underestimated its labor.costs and costs for benefits, taxes and insurance for the tuckpointing on one of the buildings by $24,166.80 because of its fail- ure to multiply the hourly rate for the projected 137 days'of labor by 8 hours per day. Bids were opened on September 19, 1979, with two bids being received, Mid-South's at $51,822, and one other for $98,105.17. We have been informally advised that the Government estimate for the project was be- tween $50,000 and $100,000. Due to the large disparity in the bids and the inconclusive nature of the Govern- ment estimate, the contracting officer telephoned Mid- South on September 21 to obtain bid verification. The telephone contact report from the VA indicates that Mid-South's vice president and estimator asked if something was wrong with his bid, and also asked for the bid results, which I gave him. The bid was con- firmed on the same day. A notice of award was mailed to Mid-South on September 25, 1979. On September 29, Mid-South asserts it realized it had made an error.

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