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B-157211, B-157266, SEP. 3, 1965

B-157211,B-157266 Sep 03, 1965
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DEFENSE SUPPLY AGENCY: REFERENCE IS MADE TO A REPORT FORWARDED BY LETTER DATED AUGUST 17. ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO PETROF DENYING ITS PROTEST. ON WHICH EXPLOSIVES WAS THE HIGH BIDDER. WAS OVERSTATED BY FOUR POUNDS FOR EACH CONTAINER. IT IS CONCEIVABLE. THE BID PRICE WOULD HAVE BEEN HIGHER SINCE THE TRANSPORTATION CHARGES TO BE BORNE BY THE PURCHASER MIGHT HAVE BEEN LESSENED. IT IS OUR VIEW THAT SHOULD YOU DETERMINE UPON CONSIDERATION OF ALL THE FACTORS RELATING TO THE RESALE OF ITEM 7 THAT ACCEPTANCE OF EXPLOSIVES' BID OF ?041 PER POUND ON THE MISDESCRIBED PROPERTY WOULD BE IN THE BEST INTEREST OF THE GOVERNMENT.

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B-157211, B-157266, SEP. 3, 1965

TO VICE ADMIRAL JOSEPH M. LYLE, DIRECTOR, DEFENSE SUPPLY AGENCY:

REFERENCE IS MADE TO A REPORT FORWARDED BY LETTER DATED AUGUST 17, 1965, BY YOUR ASSISTANT COUNSEL, ON THE PROTESTS OF PETROF TRADING COMPANY, INC., AND EXPLOSIVES ENGINEERING SERVICE, NC., REGARDING THE SALE OF SURPLUS SMOKELESS EXPLOSIVE POWDERS AND BARIUM CHLORATE UNDER INVITATION FOR BIDS NO. 27-S-65-75, ISSUED MAY 19, 1965, BY THE DEFENSE SURPLUS SALES OFFICE, COLUMBUS, OHIO.

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO PETROF DENYING ITS PROTEST.

REGARDING THE PROTEST OF EXPLOSIVES ENGINEERING SERVICE, INC., THE RECORD INDICATES THAT THE WEIGHT OF THE CONTAINERS HOLDING THE BARIUM CHLORATE OFFERED UNDER ITEM 7, ON WHICH EXPLOSIVES WAS THE HIGH BIDDER, WAS OVERSTATED BY FOUR POUNDS FOR EACH CONTAINER. IT IS CONCEIVABLE, THEREFORE, THAT HAD THE PROPER CONTAINER WEIGHT BEEN STATED IN THE IFB, THE BID PRICE WOULD HAVE BEEN HIGHER SINCE THE TRANSPORTATION CHARGES TO BE BORNE BY THE PURCHASER MIGHT HAVE BEEN LESSENED. HOWEVER, DLSC COMPUTES SUCH TRANSPORTATION COSTS AT LESS THAN $100 AND, IN ADDITION, POINTS TO THE FACT THAT EXPLOSIVES HAS OFFERED A PRICE OF ?041 PER POUND FOR THE BARIUM CHLORATE UNDER ITEM 7, WHEREAS THE BARIUM CHLORATE SOLD UNDER ITEM 6 BROUGHT ?027 PER POUND.

BEARING IN MIND THAT THE RIGHT TO REJECT ALL BIDS, RESERVED TO THE GOVERNMENT IN PARAGRAPH 3 OF THE GENERAL SALES TERMS AND CONDITIONS OF THE IFB, SHOULD BE EXERCISED ONLY IN THE BEST INTEREST OF THE GOVERNMENT AND FOR SOME REASONABLE CAUSE, IT IS OUR VIEW THAT SHOULD YOU DETERMINE UPON CONSIDERATION OF ALL THE FACTORS RELATING TO THE RESALE OF ITEM 7 THAT ACCEPTANCE OF EXPLOSIVES' BID OF ?041 PER POUND ON THE MISDESCRIBED PROPERTY WOULD BE IN THE BEST INTEREST OF THE GOVERNMENT, OUR OFFICE WOULD INTERPOSE NO OBJECTION TO AWARD OF THE ITEM TO EXPLOSIVES, CONDITIONED UPON WAIVER BY IT OF ANY CLAIM OF MISDESCRIPTION AGAINST THE GOVERNMENT ON THE PROPERTY IN QUESTION. ABSENT SUCH WAIVER, THE PROPERTY SHOULD BE WITHDRAWN FROM SALE AND READVERTISED.

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