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B-195258 1 (1979-07-13)

handle is hein.gao/gaobadhkf0001 and id is 1 raw text is: 1F' p THE COMPTROLLER GENERAL DECISION . OF THE UNITED BTATES WASHINGTON, D.C. 20548 FILE: B-195258 DATE: July 13, 1979 MATTER OF: Hanagriffs Machine Shop, Inc. t( DIGEST: I4 Where high bid was 5-1/4 times second high bid, which was closely aligned with next highest bids, and where high bid exceeded item's acquisition price by 183 percent, contracting officer was on constructive notice of possible mistake and should have sought verification. In these circumstances, bidder who mistakenly bid on sale item may have contract rescinded. The Defense Logistics Agency has requested the rescission of the contract awarded to Hanagriffs Machine Shop, Inc. (Hanagriffs) under sale No. 31-9086 issued by the Defense Property Disposal Service, Memphis, Tennessee.o i\ Hanagriffs submitted the high bid of $13,752 for sale item 124 and award was subsequently made to it. Upon receipt of notice of award, Hanagriffs alleged that it intended to bid on item 123 rather than item 124. The Defense Logistics Agency recommends that the contract be rescinded since the contracting officer was on constructive notice of possible error in bid and should have requested verification prior to award. We agree. The general principle applicable to this case is that a purchaser's unilateral mistake in bid will not excuse it from a contract subsequently awarded unless the con- tracting officer knew or should have known of the mistake. Corbin on Contracts § 610; Wender Presses, Inc. v. United States, 343 F.2d 961 (Ct. Cl. 1965); Saligman v. United States, 56 F. Supp. 505 (E.D. Penn. 1944); J.B.L. Construc- tion Co., Inc., B-191011, April 18, 1978, 78-1 CPD 301. There is no evidence in the present record to indicate

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