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B-178711 1 (1973-06-14)

handle is hein.gao/gaobaadbo0001 and id is 1 raw text is: 
                 IL1

                        CoM~rrIOLLEFt GENERAl, OF THE UNITIED STATES
     ILJ;4                         ASIMGr&*..  I

                                         June 14, 1973


         The Imorable Donald K. Jobn  
         AdmiAistrator, Voterna dtdnitratin
                                  1
         Dear   . satn. onl
                    9*                                                 9
              Referenc, U a aeto letter 340 dated HWy 15, 1973, from the
         Director, Supply forvte, PDepartw  at of Hdlelae ad Surgery, for-
         vardtngswith £ favorabe recowaUtton, the[quaut of-Taa-cec
         ma&tme-Cepmr to be relieved from psrformaco wader purchase order
         *=wutractao 73-e20130p Saud by the sMarket ng Division for  edcal


      *       The SIwvtit io for bide under *hic ' the contract n  mmrded
         soltitud bids for 24 separate lUe Item coverUg seneral type of
         I ceaking and dspensing machines fox various Vatoras Admnisatratiom
         hoepital.  The cmpy'se low pricm  for three item veor accepted
         by the contracting officer for svard subsequent to the award, the
         caopauq roquested to be relived of performance ouader the contract
 Kbecause of an error which resultd in its failure to Include in Its
 V      . pric esig iflcat auits to cover warranty rluirmontu   The
         acpany submitted vidonce demonstrating the error to the atisfaction
         of the contracting officer.

              he conutactan officer h. recomended that the company be
         releved of performance under the contract without liability on the
         ground. that he should have ben aware of the posibility of error and
         roquested ver$ftiation of its bid prices. In this regard, he points
         out that the avrvl see prices bid by tho next three lwest bidders on
         the threeitws awarded to the company ara approxi sataly 18, 19 and
         33 percont h41dhor, reapoctively, then the corresponding pricAs dn the
         COMPO17695bid.
              F*oc our rev of the reord, wo egre. that the contracting       ,
         officer %6a on coastructivu notice, of error  nd that verification
         should have boa requested before award. Accordingly, the owmpany
         my be relieved from performce a. adaelcutratvaly recoammaded.
         Se 37 Coup. Gon 685 (1950).

                                        Sincerely yours,

                                           PAUL Qo DflbOLrwc
                                 Iro the Ccptrollcr Gmeral
                                        of the Uaited States
4      1'lr    C•           Q Cj                                        u('W

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