B-123489, SEP. 30, 1955
Highlights
TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 15. ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 09/603/55-5551 IS BASED. THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEM 19 ON THE BASIS OF ITS UNIT BID PRICE OF $0.1006 EACH. IN ITS LETTER THE COMPANY ALLEGED THAT A TYPOGRAPHICAL ERROR HAD BEEN MADE IN ITS BID AS TO ITEM 19 IN THAT THE PRICE FOR THAT ITEM SHOULD HAVE BEEN $1.006 EACH INSTEAD OF $0.1006 EACH. THE PRINTED PRICE LIST SPECIFIES A LIST PRICE OF $175 PER 100 ($1.75 EACH) FOR GE 4069-1 OUTLETS (RECEPTACLES) AND IF THE DISCOUNT OF 50 PERCENT SHOWN ON THE DISCOUNT SHEET IS APPLIED TO THE LIST UNIT PRICE OF $1.75 EACH. THE NET UNIT PRICE WILL BE $0.875.
B-123489, SEP. 30, 1955
TO THE SECRETARY OF THE AIR FORCE:
REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 15, 1955, WITH ENCLOSURES, FROM THE OFFICE OF THE CHIEF, ADJUDICATIONS BRANCH, SETTLEMENTS DIVISION, AIR FORCE FINANCE CENTER, FURNISHING THE REPORT REQUESTED BY OUR OFFICE RELATIVE TO AN ERROR THE GENERAL ELECTRIC SUPPLY CO., ALBANY, GEORGIA, ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 09/603/55-5551 IS BASED.
THE PROCUREMENT DIVISION, ROBINS AIR FORCE BASE, GEORGIA, BY REQUEST FOR PROPOSAL DATED DECEMBER 31, 1954, REQUESTED BIDS FOR FURNISHING, AMONG OTHER ITEMS, 100 GE NO. 4069-1 RECEPTACLES, ITEM 19. IN RESPONSE, THE GENERAL ELECTRIC SUPPLY CO. SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHERS, 100 RECEPTACLES UNDER ITEM 19 AT A PRICE OF $0.1006 EACH FOR WHICH IT EXTENDED THE PRICE AS $100.60. ON FEBRUARY 12, 1955, THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEM 19 ON THE BASIS OF ITS UNIT BID PRICE OF $0.1006 EACH.
IN A LETTER DATED MARCH 22, 1955, TO OUR OFFICE, THE COMPANY REQUESTED THAT THE UNIT PRICE FOR ITEM 19 BE INCREASED FROM $0.1006 EACH TO $0.875 EACH, ITS ALLEGED FACTORY COST. IN ITS LETTER THE COMPANY ALLEGED THAT A TYPOGRAPHICAL ERROR HAD BEEN MADE IN ITS BID AS TO ITEM 19 IN THAT THE PRICE FOR THAT ITEM SHOULD HAVE BEEN $1.006 EACH INSTEAD OF $0.1006 EACH. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED THE PRINTED PRICE LIST AND DISCOUNT SHEET OF ITS SUPPLIER. THE PRINTED PRICE LIST SPECIFIES A LIST PRICE OF $175 PER 100 ($1.75 EACH) FOR GE 4069-1 OUTLETS (RECEPTACLES) AND IF THE DISCOUNT OF 50 PERCENT SHOWN ON THE DISCOUNT SHEET IS APPLIED TO THE LIST UNIT PRICE OF $1.75 EACH, THE NET UNIT PRICE WILL BE $0.875--- THE PRICE REQUESTED BY THE COMPANY.
ERROR IS APPARENT ON THE FACE OF THE BID OF THE COMPANY AS TO ITEM 19 SINCE THE UNIT PRICE OF $0.1006 MULTIPLIED BY THE QUANTITY OF 100, SPECIFIED FOR ITEM 19, DOES NOT EQUAL THE AMOUNT OF $100.60 INSERTED IN THE TOTAL AMOUNT COLUMN. IF THE UNIT PRICE FOR ITEM 19 BE CORRECTED TO $1.006, THE TOTAL WILL EQUAL THE EXTENDED AMOUNT OF $100.60. ALSO, IN AN UNDATED REPORT FROM THE SUCCESSOR CONTRACTING OFFICER WHO RECOMMENDED THAT THE UNIT PRICE OF ITEM 19 BE CORRECTED TO READ $0.875 EACH, IT WAS STATED THAT THE ONLY OTHER BIDDER ON ITEM 19 WAS REQUESTED BY TELEPHONE TO VERIFY ITS UNIT BID PRICE OF $0.105 EACH FOR THAT ITEM AND THAT IN RESPONSE TO SUCH REQUEST, THE BIDDER ADVISED THAT THE CORRECT UNIT PRICE FOR THAT ITEM WAS $1.05 EACH AND NOT $0.105 EACH AS ORIGINALLY QUOTED. IN THE CIRCUMSTANCES, THE GENERAL ELECTRIC SUPPLY CO. SHOULD HAVE BEEN REQUESTED TO VERIFY ITS BID AS TO ITEM 19 PRIOR TO AWARD.
ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, IT IS APPARENT THAT THE GENERAL ELECTRIC SUPPLY CO. INTENDED THE UNIT PRICE FOR ITEM 19 TO BE $1.006 EACH. ACCORDINGLY, OUR OFFICE WILL INTERPOSE NO OBJECTION TO THE PAYMENT TO THE GENERAL ELECTRIC SUPPLY CO. FOR ANY RECEPTACLES DELIVERED BY THE COMPANY UNDER ITEM 19 OF THE PURCHASE ORDER AT THE RATE OF $0.875 EACH--- THE AMOUNT REQUESTED BY THE COMPANY--- WHICH AMOUNT IS STILL LOWER THAN THE NEXT LOWEST BID ON THAT ITEM. A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING PAYMENT FOR ITEM 19.