B-106902, JUN 11, 1952

B-106902, JUN 11, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED MARCH 7, 1952, WITH ENCLOSURES, FROM THE OFFICE OF DIRECTOR OF FINANCE, REPLYING TO LETTER OF DECEMBER 12, 1951, WITH WHICH THERE WAS FORWARDED FOR A REPORT A LETTER DATED DECEMBER 3, 1951, WHEREIN UNIVERSAL WELDER CORPORATION, CLEVELAND, OHIO, ALLEGED THAT AN ERROR HAD BEEN MADE IN ITS BID DATED SEPTEMBER 17, 1951, UPON WHICH CONTRACT NO. AF 33(600)-5461 DATED OCTOBER 30, 1951, IS BASED.

THE AIR MATERIEL COMMAND, WRIGHT-PATTERSON AIR FORCE BASE, DAYTON, OHIO, BY INVITATION NO. (IFB) 33-600-52-60, REQUESTED BIDS - TO BE OPENED SEPTEMBER 18, 1951 - FOR FURNISHING 37 ACETYLENE GENERATORS, AIR REDUCTION SALES COMPANY NUMBER 802-0312, OR EQUAL, ITEM NO. 1, AND CONTRACTORS STANDARD COMMERCIAL HANDBOOK OF INSTRUCTIONS, AS SPECIFIED, ITEM NO. 1A. IN RESPONSE THERETO, UNIVERSAL WELDER CORPORATION SUBMITTED A BID IN WHICH IT OFFERED TO FURNISH 37 SIGHT FEED GENERATOR COMPANY'S MODEL 300A ACETYLENE GENERATORS AT $1,175 EACH, AND TO FURNISH THE DATA CALLED FOR UNDER ITEM NO. 1A AT NO ADDITIONAL CHARGE, A TOTAL BID PRICE FOR BOTH ITEMS OF $43,475. BY LETTER DATED SEPTEMBER 20, 1951, THE CORPORATION ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID AND REQUESTED THAT ITS QUOTATION BE CHANGED TO $1,217.33 EACH AND A TOTAL BID PRICE OF $45,041.21. IN A LETTER DATED SEPTEMBER 26, 1951, THE CONTRACTING OFFICER ADVISED THAT HE WAS WITHOUT AUTHORITY TO GRANT THE BIDDER'S REQUEST, BUT IN THE EVENT THAT A CONTRACT BE AWARDED TO IT, A CLAIM COULD BE FILED IN THE GENERAL ACCOUNTING OFFICE. THE CORPORATION'S BID WAS ACCEPTED ON OCTOBER 30, 1951.

THE CORPORATION, BY LETTER DATED JANUARY 23, 1952, ADDRESSED TO THIS OFFICE, ADVISED THAT THE ALLEGED ERROR WAS DUE TO INADVERTENTLY BASING ITS BID ON A LIST PRICE OF $750 PER GENERATOR TAKEN FROM AN OBSOLETE PRICE BULLETIN INSTEAD OF A LIST PRICE OF $975 EACH PUBLISHED IN ITS SUPPLIER'S LATEST PRICE BULLETIN. IN SUPPORT OF THE ERROR, THE CORPORATION FORWARDED WITH SAID LETTER A PHOTOSTATIC COPY OF ITS WORK SHEET SHOWING THAT ITS BID PRICE OF $1,175 EACH WAS BASED ON THE USE OF A LIST PRICE OF $750 PER GENERATOR, LESS A 30 PERCENT DISTRIBUTOR'S DISCOUNT, PLUS $543 EACH FOR PACKAGING AND A 10 PERCENT WRITE-UP THEREON. ALSO, THE CORPORATION FURNISHED THEREWITH A COPY OF THE SIGHT FEED GENERATOR COMPANY'S PRICE BULLETIN, FORM A 847, SHOWING THE LIST PRICE TO BE $750 PER GENERATOR, AS ALLEGED; A PRICE BULLETIN OF SAID MANUFACTURER, IDENTIFIED AS FORM NO. A 250 N, PURPORTEDLY OF LATER DATE, IN WHICH THE PUBLISHED LIST PRICE FOR THE IDENTICALLY DESCRIBED GENERATOR IS SHOWN TO BE $975 EACH F.O.B. FACTORY; AND ALSO A PHOTOSTATIC COPY OF A LETTER DATED JANUARY 9, 1952, FROM THE SIGHT FEED GENERATOR COMPANY WHEREIN IT IS STATED, IN PERTINENT PART, AS FOLLOWS:

"WE REGRET VERY MUCH THAT YOU WERE NOT AWARE THAT YOUR PRICE BOOK BULLETIN A 847 USER PRICE OF $750.00 TO USER, LESS YOUR 30% DISTRIBUTOR DISCOUNT WAS OBSOLETE AND THAT THE CORRECT USER PRICE YOU SHOULD HAVE USED IN YOUR CALCULATIONS WAS THAT SHOWN IN THE CURRENTLY EFFECTIVE PRICE BULLETIN FORM A-250N, PAGE 4 AS POSTED IN PRICE LIST - $975.00 TO USER SUBJECT, OF COURSE, TO YOUR USUAL 30% DISCOUNT.

"INASMUCH AS WE QUOTED THIS EQUIPMENT DIRECT TO WRIGHT-PATTERSON AIR FORCE BASE AT $975.00 LESS 30%, PLUS $543.00 FOR THE PACKAGING-WHICH IS THE SAME PRICE, WE CAN SELL THE SAME MATERIAL TO YOU. YOU SHOULD PAY THIS PRICE FOR THE EQUIPMENT YOURSELF UNDER THE TERMS OF YOUR DISTRIBUTORS FRANCHISE."

ACCORDINGLY, SINCE THE BIDDER ALLEGED ERROR PRIOR TO AWARD AND SINCE THE EVIDENCE FURNISHED BY THE CORPORATION LEAVES NO ROOM FOR DOUBT THAT AN ERROR WAS MADE AND, ALSO, SINCE IT IS REPORTED THAT NO DELIVERIES HAVE BEEN MADE, THE UNIVERSAL WELDER CORPORATION MAY BE RELEASED FROM OBLIGATION TO FURNISH THE GENERATORS AT ITS BID PRICE.

IN THE EVENT THAT DELIVERY HAS BEEN EFFECTED, IN WHOLE OR IN PART, SINCE THE RECEIPT OF THE REFERRED-TO REPORT, PAYMENT IS AUTHORIZED TO BE MADE TO THE UNIVERSAL WELDER CORPORATION IN THE AMOUNT OF THE NEXT LOW BID PRICE, OR IN THE AMOUNT OF $1,217.33, EACH WHICHEVER IS LOWER, FOR SUCH GENERATORS AS HAVE BEEN DELIVERED AND ACCEPTED UNDER THE CONTRACT.