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B-175325 1 (1974-07-11)

handle is hein.gao/gaobadcdf0001 and id is 1 raw text is: DECISION FILE: B-175325 THE COMPTROLLER GENERAL . .OF THE UNITED STATES WASHINGT N, D.C. 20548 DATE: July 11, 1974 MATTER OF: M & M Precision Systems, Inc. Contract canceled on basis of error in bid upon request of contractor several months after contractine officer and contractor had knowledge of error should not be reinstated notwithstanding principle that party desir- ing to rescind contract on grounds of mistake must announce intention at once or be bound by contract, since contractor who might have relied on such defense chose instead to seek cancellation for error and only relied on such defense after cancellation was granted. The issue in this case is whether a contractor, M & M Precision Systems, Inc. (M & M), which had its contract N00156- 72-C-1115 with the Naval Air Engineering Center canceled because of an error in bid, is entitled to have the contract reinstated in order that it may pursue as a termination for convenience claim the expense incurred in work, modification changes and engineering and material costs allegedly incurred prior to the cancellation of the contract. In decision of August 9, 1972, our Office considered the initial claim of the contractor that the contract should be canceled and sustained the claim. Subsequently, by decision of December 21, 1972, the contractor's claim for $24,000 for expenses allegedly incurred under the contract was denied on the grounds that no tangible benefits were received by the Government. The facts and circumstances considered in connec- tion with those claims are set forth in the referenced decisions and will not be repeated here. The contractor has subsequently requested reconsideration of the decisions substantially on the basis that the contract should not have been canceled, but rather terminated for the convenience of the Government with the contractor reimbursed its out-of-pocket expenses. In support of the contention that - 1 - DIGEST:

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