Alabama Shirt & Trouser Co. v. United States

In April 1946 the Quartermaster Corps of the Army invited bids from many manufacturers for the manufacture of wool army trousers. Twenty-three manufacturers, including the plaintiff, submitted bids for various quantities. The bids ranged from plaintiff’s bid of $0.975 per pair to a high of $2.475 by one manufacturer. A contract for 30,000 pairs was made with the plaintiff at its bid price. Other contracts were made with other manufacturers at higher prices, the average price being about $1.35 per pair.

The plaintiff’s official who prepared its bid was negligent. His telegraphic bid, quoted in…