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B-181028 1 (1974-07-11)

handle is hein.gao/gaobadcde0001 and id is 1 raw text is: DECISION FILE: B-181028 THE COMPTROLLER GENERAL OF THE UNITED STATES 1\4.-- '. WASHINGTON. O.C. 20548 DATE: July 11, 1974 MATTER OF: Fritz A. Nachant, Inc. Invitation for Bids No. N62474-74-B-2965 DIGEST: Contracting officer was not on actual or constructive notice of mistake in bid of low bidder nor was there any duty to seek bid verification where all six bids fol- lowed a normal upward progression and four bids were priced below the Government's estimate. This matter involves a mistake alleged by Fritz A. Nachant, Inc. (Nachant) in its bid under the subject invitation covering the construction of a maintenance building at the Naval Air Station, North Island, San Diego, California. The requirement was the subject of two solicitations, the first having been canceled because of a mistake in the low bid and the excessive pricesof the remaining bids. The readvertised IFB, with some specification changes, was opened March 15, 1974, and award was made on that date to Nachant, the lowest aggregate bidder. In a telegram dated April 5, 1974, Nachant advised the Navy that its bid was $30,000 to $40,000 lower than it should have been. The telegram alleged that a mistake was caused by a faulty subcontractor quotation. The contractor has requested relief by way of rescission of the contract. Nachant has suggested that the Government knew or should have known of the mistake before the bid was accepted for award. As a general rule, when a bid has been accepted the bidder is bound to perform and must bear the consequences of its unilateral mistake. Saligman et al. v. United States, 56 F. Supp. 505 (D.C.E.D. PA. 1944). However, our Office has held that no valid and binding contract is consummated where the contracting officer knew or should have known of the probability of error, but neglected to take proper steps to verify the bid. 37 Comp. Gen. 685 (1958) and 17 Comp. Gen. 575 (1938). In determining whether a contracting officer has a duty to verify bid prices we have stated: - 1 - ? -5- .2 51

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