B-125304, SEP. 19, 1955

B-125304: Sep 19, 1955

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INC.: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 1. YOUR OFFER WAS ACCEPTED BY PURCHASE ORDER DATED SEPTEMBER 18. YOU SENT A TELEGRAM TO THE ARSENAL ADVISING THAT YOUR PRICE WAS NET AND INQUIRED WHETHER IT WOULD BE SATISFACTORY TO PROCEED ON THE BASIS OF A NET PRICE OF $787.50. YOU WERE NOTIFIED TO DELIVER THE MATERIALS IN ACCORDANCE WITH YOUR QUOTATION WHICH CONTAINED A 20 PERCENT CASH DISCOUNT OFFER. THE RECORD FURTHER SHOWS THAT A PHOTOSTAT WAS MADE OF YOUR PROPOSAL AS SUBMITTED AND FORWARDED TO YOU FOR YOUR EXAMINATION. THEREAFTER YOU MADE DELIVERY WHICH WAS ACCEPTED BY THE ARSENAL ON FEBRUARY 25. THE ADMINISTRATIVE AGENCY HAS REPORTED THAT YOUR PROPOSAL WAS ACCEPTED BY THE GOVERNMENT WITHOUT ANY NOTICE OF ERROR THEREIN.

B-125304, SEP. 19, 1955

TO BUNTING STAMP COMPANY, INC.:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 1, 1955, REQUESTING REVIEW OF SETTLEMENT DATED JULY 15, 1955, WHICH DISALLOWED YOUR CLAIM FOR $157.50, REPRESENTING THE SUM DEDUCTED AS CASH DISCOUNT FROM YOUR INVOICE NO. 83097, DATED FEBRUARY 26, 1954, COVERING CERTAIN STEEL DIES FURNISHED THE DEPARTMENT OF THE ARMY, WATERTOWN ARSENAL, WATERTOWN, MASSACHUSETTS, UNDER PURCHASE ORDER NO. 54-1410, DATED SEPTEMBER 18, 1953.

THE WATERTOWN ARSENAL, ORDNANCE CORPS, WATERTOWN, MASSACHUSETTS, ISSUED REQUEST FOR PROPOSAL NO. 70, DATED JULY 28, 1953, FOR THE PURCHASE OF STEEL DIES. IN RESPONSE THERETO, YOU OFFERED TO FURNISH ITEMS NOS. S4 155, S4 154 AND S4 156 FOR A TOTAL PRICE OF $787.50, LESS A 20 PERCENT CASH DISCOUNT. YOUR OFFER WAS ACCEPTED BY PURCHASE ORDER DATED SEPTEMBER 18, 1953.

THE RECORD SHOWS THAT ON SEPTEMBER 29, 1953, YOU SENT A TELEGRAM TO THE ARSENAL ADVISING THAT YOUR PRICE WAS NET AND INQUIRED WHETHER IT WOULD BE SATISFACTORY TO PROCEED ON THE BASIS OF A NET PRICE OF $787.50. IN REPLY, YOU WERE NOTIFIED TO DELIVER THE MATERIALS IN ACCORDANCE WITH YOUR QUOTATION WHICH CONTAINED A 20 PERCENT CASH DISCOUNT OFFER. THE RECORD FURTHER SHOWS THAT A PHOTOSTAT WAS MADE OF YOUR PROPOSAL AS SUBMITTED AND FORWARDED TO YOU FOR YOUR EXAMINATION; THAT YOU THEN SUBMITTED YOUR CARBON COPY OF YOUR PROPOSAL WHICH DID NOT CONTAIN THE 20 PERCENT DISCOUNT OFFER. BY LETTER DATED NOVEMBER 10, 1953, THE ARSENAL REQUESTED YOU TO MAKE DELIVERY OF THE ITEMS IN ACCORDANCE WITH THE CONTRACT TERMS, AND THEREAFTER YOU MADE DELIVERY WHICH WAS ACCEPTED BY THE ARSENAL ON FEBRUARY 25, 1954.

THE ADMINISTRATIVE AGENCY HAS REPORTED THAT YOUR PROPOSAL WAS ACCEPTED BY THE GOVERNMENT WITHOUT ANY NOTICE OF ERROR THEREIN; THAT PURCHASE ORDER NO. 54-1410 WAS ISSUED IN ACCORDANCE WITH YOUR PROPOSAL; AND THAT DELIVERY WAS ACCEPTED AND PAYMENT MADE PURSUANT TO THE TERMS OF THE CONTRACT. THE ORIGINAL PROPOSAL, WHICH CONTAINED THE "LESS 20 PERCENT" OFFER OF DISCOUNT, AND YOUR CARBON COPY THEREOF, WHICH YOU FORWARDED HERE AND WHICH DID NOT CONTAIN THE "LESS 20 RCENT," APPEAR TO HAVE BEEN TYPED WITH THE SAME TYPEWRITER RIBBON AS THE OTHER ITEMS FILLED IN BY YOU. SUCH ERROR AS MIGHT HAVE BEEN MADE IN YOUR BID WAS UNILATERAL--- NOT MUTUAL--- AND SINCE YOUR OFFER WAS THE ONLY ONE RECEIVED, THE USUAL PRICE COMPARISON BASIS WAS NOT AVAILABLE TO THE CONTRACTING OFFICER FOR APPRAISAL PURPOSES.

IN VIEW OF THE FOREGOING, IT REASONABLY MAY NOT BE CONCLUDED THAT THE CONTRACTING OFFICER WAS ON NOTICE OF THE PROBABILITY OF ERROR IN THE PROPOSAL AND, THEREFORE, SHOULD HAVE REQUESTED VERIFICATION OF THE CASH DISCOUNT OFFER PRIOR TO ACCEPTANCE. THE PRESENT RECORD INDICATES THAT ACCEPTANCE OF YOUR OFFER WAS IN GOOD FAITH, NO NOTICE OF ERROR HAVING BEEN ALLEGED UNTIL AFTER THE CONTRACT WAS ENTERED INTO. THE ACCEPTANCE OF YOUR OFFER UNDER THE CIRCUMSTANCES CONSUMMATED A VALID AND BINDING CONTRACT WHICH FIXED THE RIGHTS AND LIABILITIES OF THE PARTIES THERETO.

ACCORDINGLY, THE SETTLEMENT OF JULY 15, 1955, IS SUSTAINED. YOUR CARBON COPY OF THE ORIGINAL PROPOSAL IS RETURNED HEREWITH BY REGISTERED MAIL, AS YOU REQUESTED.

Nov 24, 2017

  • FEI Systems
    We deny the protest in part and dismiss it in part.
    B-414852.2

Nov 22, 2017

Nov 21, 2017

  • A-P-T Research, Inc.
    We deny the protest in part and dismiss the protest in part.
    B-414825,B-414825.2

Nov 20, 2017

Nov 16, 2017

  • HBI-GF, JV
    We deny the protest.
    B-415036
  • Epsilon Systems Solutions, Inc.
    We dismiss the protest because it raises a matter of contract administration over which we do not exercise jurisdiction.
    B-414410.4

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