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B-189514 1 (1978-02-17)

handle is hein.gao/gaobadtcx0001 and id is 1 raw text is: 


                                                                  721
   )       COMPTROLLER GENERAL OF THE UNITED STATES
                        WASHINGTON, D.C. 20548               -


B-189514                                 FEB 1 7 1978




Mr. Kai Kabeiseman
Counsel, Defense Logistics Agency
Cameron   tation
Alexand.-ia, Virginia 22314

Dear Mr. Kabelseman:

    Th is Is in reply to your letter of January 3l4 1978, relative to our
decision in Colonial Oil Industries, Inc., B-189514e December 7, 1977,
77-2 CPD 437, You request this Office reconsider the recommendation
made therein to resollicit for the requirements awarded to Colonial at
an erroneous bid price.
    You state that prior to our decLsion the solicitation for the new con-
tract year beginning April 1, 1978 was issued on November 1, 1977. This
calls for proposals to supply approximately IT0O line items for many
Government facilities, including the items covered in our decision. You
state that an additional procurement for the items discussed in our deci-
sion would seriously disrupt your procurement process.

    On the basis of your advice that an interim award before Apr1 is
not possible, no further action is required to effect our recommendation.

    Your letter correctly observes that the underlying premise to our
recommendation of resollc tation was the relative ease with which th..
Colonial contract could be rescinded, It remains our position that
whe re award of a requirements contract or Indefinite quantity type
contract has been tnade with actual or constructive notice of mistake,
rescission and resolicitation ordinarily is the preferred remedy. Ve
think it is unfair to other bidders and detrimental to the integrity of
the competitive procurement system to retain such a contractor without
regard to the standards normally required for correction of mistakes.
Wt consider reformation in such circumstances to be the least desirable
solution and we would recommend for future cases consideration of
possible alternatives such as revival of the otherwise low bid.

                                   Sincerely yours,


                            Deputyj Comptroller General
                                   of the United States



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