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B-194712 1 (1979-06-13)

handle is hein.gao/gaobadhhp0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION Y NOF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-194712 DATE: June 13, 1979 MATTER OF: Colonial Aluminum Sales, Inc. DIGEST: Contract may not be rescinded on basis of unconscionability, since circumstances do not establish that Government is obviously getting something for nothing. The Department of Transportation (DOT) has forwarded for our consideration a claim of mistake in bid submitted by Colonial Aluminum Sales, Inc. (Colonial), after the award to the firm of a $10,500 contract to furnish and install vinyl siding at two airports in New York. Colonial submitted the only bid under the solicitation for the services. Since the Government estimate was $15,000, the contracting officer advised Colonial that its bid was 30 percent below the Govern- ment estimate and requested that Colonial verify its bid, which the firm did on September 27, 1978. Contract No. DOT-FA78EA-9368 was awarded to Colonial on that same date. In view of the nature of the request for veri- fication and the response, we believe the mistake was unilateral, not mutual, and thus a valid and binding contract resulted from the award. Porta-Kamp Manufac- turing Company, Inc., 54 Comp. Gen. 545 (1974), 74-2 CPD 393. Shortly after award, Colonial alleged that it had misread as $300,000 the solicitation's require- ment that the contractor procure bodily injury and property damage liability insurance in the amount of $3,000,000. Colonial stated that the cost of the addi- tional coverage would be $6,700. In support of the claim of mistake, Colonial submitted a letter from its insurance company advising the firm of the cost of the necessary coverage. The firm's worksheets appear to indicate that in preparing the bid Colonial allocated less than $1,000 for insurance.

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