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75.

Claims of Mistakes in Bids

If the government knew or should have known of a mistake in a contractor's bid, and failed to request adequate verification of the bid price before award, the bidder may obtain the equitable remedy of reformation to correct a unilateral mistake. See United States v. Hamilton Enterprises, Inc., 711 F.2d 1038 (Fed. Cir. 1983); Burnett Electronics Laboratory, Inc. v. United States, 479 F.2d 1329 (Ct. Cl. 1973); Alabama Shirt & Trouser Co. v. United States, 121 Ct. Cl. 313 (1952); Ruggiero v. United States, 420 F.2d 709 (Ct. Cl. 1970). When the contracting officer reasonably suspects or should suspect that a mistake has been made, he/she must request the bidder to verify the bid. And, in so doing, he/she must inform the bidder of why the request for the verification is being made. See 48 C.F.R. § 1-2.406-31; United States v. Hamilton Enterprises, Inc., supra; United States v. Metro Novelty Manufacturing Co., 125 F. Supp. 713 (S.D.N.Y. 1954).

[cited in USAM 4-4.420]