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B-184780 1 (1975-12-23)

handle is hein.gao/gaobadduh0001 and id is 1 raw text is: 


                             THE  COMPTROLLER GENERAL
DECISION                   *OF THE       UNITED      STATES
                             -~       NJA SH INGT0N 0.C. 20548




FILE:   B-184780                    DATE:   December 23, 1975

MATTER OF: Stainless Piping Supply Company


DIGEST:

1.  Where contract is terminated for default for failure of
    contractor to supply item which is also subject of
    mistake claim, issue of whether mistake exists is not
    under jurisdiction of Armed Services Board of Contract
    Appeals but for GAO or courts to decide.

2.  Contractor alleging mistake in bid after award is not
    entitled to relief where contracting officer'had no
    actual or constructive notice of mistake prior to award.
    Variation of approximately 12.7 percent between low and
    next low bid and fact that manufacturer cited on bid
    allegedly does not produce required item are not suf-
    ficient to constitute constructive notice of mistake.


    Stainless Piping Supply Company (Stainless) requests that our
Office grant it relief from a decision of the Defense Construction
Supply Center, Defense Supply Agency (DSA) denying Stainless'
claim of mistake alleged after award of contract DSA700-75-C-4896.

    The contract resulted from IFB DSA700-75-B-1708 which calls
for the delivery of pipe of various diameters. Items 0001 and
0002 call for welded pipe while Item 0003 and option Item 0004
call for seamless pipe.  Stainless was the lowest of eight bidders
on Item 0001, welded pipe, as well as on Item 0003, the seamless
pipe, for which it bid $4.16 per foot. The next lowest bid on
seamless pipe was $4.69 per foot. On March 27, 1975, DSA exercised
the option quantity under Item 0004 and awarded contract DSA700-
75-C-4896 for Items 0001, 0003 and 0004 to Stainless. The award
of Item 0001 is not in controversy.

    Shortly after the award Stainless wrote the agency and alleged
that its bid on Item 0003 was erroneous in that it was based on
furnishing welded rather than the seamless pipe required by the
IFB.  The agency responded by issuing a 10-day cure notice and
informing Stainless that since its price was in line with the
others received there was no basis to charge the contracting offi-
cer with knowledge of the mistake. The agency also warned Stain-
less that a valid contract existed obligating it to deliver the
required seamless pipe.


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