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B-196710 1 (1980-01-24)

handle is hein.gao/gaobadhxp0001 and id is 1 raw text is: 

                           THE/2UZ7
                        THE  COMPTROLLER GENERAL
DECISION                OF  THE   UNITED STATES
                        WASHINGTON, D.C. 20548




FILE: B-196710                DATE: January 24, 1980'

MATTER  OF:  Dunn Electric Company  ])L 63 6       Y'>


DIGEST:

      Binding contract did not result from
      Government's acceptance of bid where
      contracting officer should have been
      on notice of possible error in bid
      and did not request verification by
      bidder.

      The Veterans Administration (VA) has orwarded a
 request by Dunn Electric Company (Dunn) fo l;eforma-
 tion of contract No. V506C-446-79 for the removal and
 replacement of two generators and associated equip-
 ment at the VA Medical Center in Ann Arbor, Michigan,bLG,63 23
 on the basis of an alleged mistake in Dunn's bid dis-
 covered by the contractor after award. For the reason
 set forth below, we believe that the contract should
 be reformed.

      Item I involved the removal and replacement of a
 75 KW generator with a 180/185 KW one and of a 60 KW
 generator with a 75 KW one. Item II required the re-
 moval and replacement of the 75 KW generator only.
 Award was to be made for item I unless the low bid
 exceeded the funds available, in which case award
 would be made for item II.

      Dunn's bid of $69,888 for item I .and $40,220
 for item II was the only bid received, and a contract
 was awarded to the firm for item I. Immediately
 thereafter, Dunn asserted that it had made a mistake
 in its bid. Dunn contended that its bid on item I of
 $69,888 was for the removal and replacement of the
 75 KW generator only, and that its bid on item II
 of $40,220 was for the removal and replacement of the
 60 KW generator. Dunn thus alleged that its intended
 bid for item I was the total of the two amounts, or
 $110,108, and that the correct bid for item II was
 $69,888.  In support of the claim, Dunn provided its
 workpapers; a supplier's quotation upon which Dunn
 alleged to have based the bid showing the cost to

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