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B-185958 1 (1976-05-03)

handle is hein.gao/gaobaddnx0001 and id is 1 raw text is: qCOLLER 0 p THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, D.C. 2054e Ov ITEO FILE: B-185958 DATE: May 3, 1976 MATTER OF: Harliss Specialties Corp. DIGEST: Rescission of contract, based on unilateral mistake, can only be allowed where contracting -officer had actual or constructive notice of error. Contract- ing officer was not placed on actual or constructive notice of error where high bid for used surplus property was only 2 times greater than next bid and 1.39 times above current market appraisal. Therefore, contract may not be rescinded. Invitation for bids (IFB) No. 27-6105, for the sale of surplus machine tools, was issued by the Defense Property Disposal Region, Columbus, Ohio. Harliss Specialties Corp. (Harliss) submitted the high bid of $6,958 for item 17,.a milling machine. Award was sub- sequently made to Harliss. After award Harliss alleged that it had made a mistake in its bid for item 17 and had, in fact, intended its bid-to be--for a brake press described by item 18. Harliss submitted its work sheets which indicated that certain figures and computations (which Harliss claims relate to item 18) were written next to item 18. According to Harliss, since there was no room for the price next to item 18, it put the price next to item 17. Harliss requested rescission of its contract for item 17, and the sales activity denied Harliss' request. The general rule is that a bidder is bound by his unilateral mistake in bid unless the contracting officer had actual or con- structive notice of the mistake before the award was made. Wender Presses, Inc. v. United States, 170 Ct. Cl. 483 (1965). In a sale of surplus property, a wide range of bids ordinarily is not deemed to be constructive notice of error. United States v. Sabin Metal Corporation, 151 F. Supp. 683 (S.D.N.Y. 1957), affirmed 253 F.2d 956 (2d Cir. 1958); Rodman N. Barker, B-182632, February 19, 1975, 75-1 CPD 104; Bimco Corporation, B-185519, January 26, 1976, 76-1 CPD 45; B-160226, November 3, 1966. - 1 -

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