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B-191069 1 (1978-02-09)

handle is hein.gao/gaobadfrf0001 and id is 1 raw text is: h A. Poat 0a-LA, U,. f THR 1:oMPTNcLLEN CENENRAL DECISION . ): PNE uNIITEC aTA.rE WASHINGTON. C.. 2054 FILE: B-191069 DATE: Febru&ry 9, 3978 MATTER OF: H & L Auto Service, Inc. DIGEST: 1. Purchaser whose bid price was substantially higher than two next high bids and current market appraisal, especially where there is comparatively narrow range among lower bids and current markrt appraisal, may have sales contract, rescinded silice contracting of- ficer was on constructive notice of possibility of mistake !I bid because of wide price variation which is not normally encountered in sale of scrap, and should have requested verification of bid before acceptance. 2. Where mistake in bid on item in surplus saled con- tract was alleged after award, and bid for item contained a discrepancy between the unit price and total price, contracting officer knew or should have known of the mistake and should have requested veri- fication before award. GAO will not object to admin- intrative recommendation to xescind te contract. The Defense Logistics Agency has recommended to our Office that sales contract No. 27-7292-116, awarded to R & L Auto Service, Inc. (H & L Auto), tn Item 137 of Sale No. 27-7292, be rescinded. Item 137 consists of 100,000 pounds of scrap lead batteries. The current market appraisal for Item 137 was $.',6 per pound. The unit price bid nhould have been Lasud on price per pound, and extended to the total quantity of 100,000 pounds. H & L Auto's bid was as follows: - 1- '? I I 'I - -- I . I

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