B-130708, FEB. 25, 1957

B-130708, FEB. 25, 1957

TO GOLD SEAL ELECTRIC SUPPLY CO.:

REFERENCE IS MADE TO YOUR LETTER DATED JANUARY 25, 1957, REQUESTING RECONSIDERATION OF SETTLEMENT DATED JANUARY 23, 1957, WHICH DISALLOWED YOUR CLAIM FOR AN ADDITIONAL $110.40 ALLEGED TO BE DUE ON ACCOUNT OF AN ERROR IN BID ON LIGHTING FIXTURES FURNISHED THE UNITED STATES COAST GUARD, CAPE MAY, NEW JERSEY.

YOUR BID IN THE AMOUNT OF $450 TO FURNISH 40 FLORESCENT INDUSTRIAL LIGHTING FIXTURES WITH LAMPS AND STARTERS (ITEM 1 OF INVITATION NO. 77 309 -56) WAS ACCEPTED BY PURCHASE ORDER 77-1562-56, DATED JUNE 28, 1956. THE THREE OTHER BIDS RECEIVED RANGED FROM $590 TO $732.40. IN YOUR LETTER DATED JULY 10, 1956, YOU CLAIMED ADDITIONAL COMPENSATION IN THE AMOUNT OF $110.40 BASED ON THE ALLEGATION THAT YOU FORGOT TO ADD THE LAMPS FOR THE FIXTURES TO YOUR BID PRICE AND THAT THE DIFFERENCE BETWEEN YOUR BID AND THE NEXT LOWEST BID SHOULD HAVE CAUSED THE CONTRACTING OFFICER TO QUESTION YOUR PRICE. ON JANUARY 23, 1957, OUR CLAIMS DIVISION DISALLOWED YOUR CLAIM ON THE BASIS THAT THE VARIANCE IN PRICES DID NOT PUT THE CONTRACTING OFFICER ON NOTICE OF ERROR AND THAT AS A RESULT YOU MUST BEAR THE CONSEQUENCES OF YOUR UNILATERAL MISTAKE. IN YOUR LETTER OF JANUARY 25, 1957, YOU REQUEST RECONSIDERATION OF THE DISALLOWANCE ON THE BASIS THAT THE DIFFERENCE BETWEEN YOUR BID AND THE NEXT LOW BID WAS APPROXIMATELY 25 PERCENT AND YOU INFER THAT THE CONTRACTING OFFICER SHOULD, THEREFORE, HAVE BEEN ON NOTICE OF A POSSIBLE MISTAKE IN YOUR BID; ALSO, YOU STATE, IN EFFECT, THAT YOU WERE ASSURED BY THE CONTRACTING AGENCY THAT YOUR CLAIM WOULD BE APPROVED.

IN REGARD TO THE DIFFERENCE IN PRICE BETWEEN YOUR BID AND THE NEXT LOW BID, YOUR ATTENTION IS INVITED TO 17 COMP. GEN. 452, WHEREIN THERE WAS CONSIDERED A SIMILAR VARIANCE, I.E., THE DIFFERENCE BETWEEN $1.24 AND $1.665 EQUALING APPROXIMATELY 25 PERCENT. IT WAS HELD IN THAT CASE, AT PAGE 454, THAT THE ACCEPTANCE OF THE BID CONSUMMATED A CONTRACT AND FIXED THE RIGHTS AND OBLIGATIONS OF THE PARTIES WHICH COULD NOT BE CHANGED BY ANY ACTION OF GOVERNMENT OFFICERS EXCEPT FOR THE GOVERNMENT'S OWN BENEFIT OR UPON SOME NEW AND VALUABLE CONSIDERATION PASSING TO THE GOVERNMENT. DOES NOT APPEAR, NOR HAS THE CONTRACTING OFFICER STATED, THAT THE RANGE IN BIDS WAS SUCH THAT HE SHOULD HAVE SUSPECTED AN ERROR IN YOUR BID.

IN REGARD TO YOUR CONTENTION THAT YOU WERE ALLEGEDLY ASSURED BY THE CONTRACTING AGENCY THAT YOUR CLAIM WOULD BE APPROVED, IT HAS BEEN HELD THAT THE FACT THAT A COMPANY ELECTED TO ACT ON THE CONTRACTING OFFICER'S INSTRUCTIONS TO MAKE DELIVERY OF THE MATERIAL AND TO PRESENT A CLAIM FOR ANY AMOUNT TO WHICH IT BELIEVED ITSELF ENTITLED, IN ADDITION TO THE CONTRACT PRICE, DOES NOT REQUIRE OR AUTHORIZE ALLOWANCE OF THE CLAIM. COMP. GEN. 452, 454.