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B-187488 1 (1976-10-22)

handle is hein.gao/gaobadefu0001 and id is 1 raw text is: i. Ale A 9 b. u rTHU COMPTflOLILER GIIPAERAL O E CI1lON OF THE! LINfTL13 V L B TATEf 61WASHINGYON, . O. 20.546 FILE:. 1-187488 DATE: otober 2N, 1976 * MATTER OF; American Railroad Industriea, Inc, . .DIGEST: Where, after award, contractor allegepmistakc in bid price which was only 7 percent lower than Government estimate and 12 percent lower than next. lowest. bid, such disparities were not so great as to have placed) contracting officer on constructive notice of possibility of mistake and no relief may be granted from valid and binding contratt. American Railroad Industries, Iuc. (ARM) requests relief from a mistake in bid, resulting from an error in additon, which was not discovered until after it was awarded contract No. DAKF23-76-rC-0407. The Government estimate for the railroad repairs Involved was 457,497.P.ARI's bid was $53,339,00; the second lowest bid was $60,600.00. Where, as here, a mistake in bid has been alleged after award of contract, this Office may grant roll fonly If such sidtakp was mutual or if the contracting officer had actual or construetive notice of thearror prior to award. 45 Comp. Gen. 700, 706 (1966), The contracting officer will be charged with construc- tiveknowledge of such error only where the bid price deviates sianificantly from the other bids received or from the Government's estimate., 1-176517, September 6, 1972, The test is one of reasonableness; whether 'under the facts and circumstances of the particular case9 there are,factors whicihcculd have raised the presumption of e rror In tHe mind of the contracting officer. Wendet 1/resses, Inc. v. -Jnited States, 170 Ct. Cl. 483, 486 (1965);i-176772, May 23, 1973. Generally, a contracting officer has no reason to suspect error where a low bid is in line with other bid9 received and with the Government estimate. >-179725, Octobcr 30, 1973. . In the instant case, the bid price of ARI was only 7 percent below the Government's estimate and 12 percent below the second lowest bid. We believe that. these differences were not so great

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