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Contracts Keyed to Marshall
Pavel Enterprises, Inc. v. A.S. Johnson Company, Inc.
Citation:674 A.2d 521 (1996)
The National Institutes of Health solicited bids for a renovation project on Building 30 of its Bethesda, Maryland campus. General contractors’ bids were opened on the afternoon of August 5, 1993. PEI’s bid was the second lowest bid. The government subsequently disqualified the apparent low bidder,4 however, and in mid-August, NIH notified PEI that its bid would be accepted. Upon receipt of PEI’s fax of September 1, James Kick called and informed PEI that Johnson’s bid contained an error, and as a result the price was too low. According to Kick, Johnson had discovered the mistake earlier, but because Johnson believed that PEI had not been awarded the contract, they did not feel compelled to correct the error. Kick sought to withdraw Johnson’s bid.
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