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B-184180 1 (1975-11-28)

handle is hein.gao/gaobadcrb0001 and id is 1 raw text is: 


                             THE  ILJIVI'TRLLE GENERA
 E  C IS IONI                OF   THE UNITED STATES
                             WASHINGTON, D.C. 20548




FILE:  B-184180                     DATE:     November 28, 1975

MATTER OF: Culligan, Inc.


DIGEST:

     Bidder alleging unilateral mistake in bid after award is
     not entitled to reformation of its contract since contract-
     ing officer requested verification of bid and received oral
     and written verification within 1 day of request. Rule is
     that when bidder is requested to verify bid and does so,
     acceptance of bid creates binding contract.


     Invitation for bids (IFB) No. N00104-74-B-1751 was issued
June 5, 1974, by the Navy Ships Parts Control Center, Mechanics-
burg, Pennsylvania, for ion exchange compounds.

     The bids were opened on June 24, 1975, and four bids were
received as follows:

     Culligan, Inc.                     $14.50 per unit
     Bio-Rad Laboratories                39.95 per unit
     Illinois Water Treatment Co.        50.20 per unit
     Rohm & Haas Co.                     57.55 per unit

The bids were evaluated and it was determined that Culligan, Inc.
(Culligan), had submitted the lowest responsive bid. When evalu-
ating the bid, the buyer took into consideration the previous price
history, the Government estimate of the cost which was $10.26 per
unit and the impact of inflation since the last procurement.

     Since there was a large disparity in Culligan's bid and the
next low bid, the contracting officer, pursuant to Armed Services
Procurement Regulation (ASPR) § 2-406.1 (1974 ed.), contacted Cul-
ligan by telephone on June 27, 1974. The president of Culligan
reportedly verified the bid price. Culligan also verified its bid
price by TWX message dated June 27, 1974. After verification, the
Navy awarded contract No. N00104-74-C-D396 to Culligan on June 28,
1974.

     By letter dated July 11, 1974, Culligan alleged that a mistake
in its bid had been discovered and that a revised bid of $29.80 per
unit was requested. In effect, this revised bid increased the con-
tract price by $44,461.80. By letter dated September 30, 1974, the


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