A-64949, SEPTEMBER 6, 1935, 15 COMP. GEN. 173

A-64949: Sep 6, 1935

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IS REQUIRED. IN RESPONSE TO THIS ADVERTISEMENT A NUMBER OF BIDS WERE RECEIVED. IT IS PROPOSED TO ACCEPT YOUR BID REFERRED TO ABOVE. THE ISSUE OF THE ORDER IS CONTINGENT UPON FUNDS BEING AVAILABLE. "2. IF SUFFICIENT FUNDS ARE FOUND AVAILABLE BEFORE JULY 1ST. OTHERWISE THE ORDER WILL BE ISSUED ON OR SHORTLY AFTER JULY 1ST. THE BIDS UNDER THIS PROPOSAL 48807 WERE SUBMITTED ON THE BASIS OF CODE COMPLIANCE. READVERTISED AND IN RESPONSE TO THIS SECOND ADVERTISEMENT A NUMBER OF BIDS WERE RECEIVED. HAVE INFORMALLY PROTESTED AGAINST AWARDING THE CONTRACT TO ANY BIDDER OTHER THAN ITSELF. YOUR DECISION IS RESPECTFULLY REQUESTED AS TO WHETHER THIS DEPARTMENT IS AUTHORIZED TO ACCEPT THE BID OF THE UNITED DRY DOCKS.

A-64949, SEPTEMBER 6, 1935, 15 COMP. GEN. 173

CONTRACTS - AWARDS - CONTINGENT AN AWARD CLEARLY CONTINGENT, DOES NOT CONSTITUTE AN ACCEPTANCE OF A BID SUBMITTED IN CONNECTION WITH ADVERTISED SPECIFICATIONS, AND ACCEPTANCE OF THE LOW BID RECEIVED IN CONNECTION WITH SPECIFICATIONS ADVERTISED AFTER REJECTION OF ALL FORMER BIDS, IS REQUIRED.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF COMMERCE, SEPTEMBER 6, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 22, 1935, AS FOLLOWS:

THE BUREAU OF LIGHTHOUSES OF THIS DEPARTMENT ON JUNE 4, 1935, ADVERTISED FOR BIDS TO BE OPENED ON JUNE 12, 1935, FOR FURNISHING APPROXIMATELY 10,483 POUNDS OF BRONZE CASTINGS FOR 375 MM LANTERNS, PROPOSAL NO. 48807. IN RESPONSE TO THIS ADVERTISEMENT A NUMBER OF BIDS WERE RECEIVED, THE LOWEST BEING SUBMITTED BY THE UNITED DRY DOCKS, INC., OF NEW YORK, IN THE AMOUNT OF $1,845. ON JUNE 17, 1935, THE BUREAU OF LIGHTHOUSES AUTHORIZED THE SUPERINTENDENT OF THE THIRD LIGHTHOUSE DISTRICT TO ACCEPT THE BID OF THE UNITED DRY DOCKS, INC., AND ON JUNE 20, THE PURCHASING AGENT, ON BEHALF OF THE SUPERINTENDENT, WROTE THE UNITED DRY DOCKS, INC., THE FOLLOWING LETTER: SUBJECT: PROPOSED ACCEPTANCE OF BID FOR BRONZE CASTINGS FOR 375 MM

LANTERNS.

"SIRS: 1. IT IS PROPOSED TO ACCEPT YOUR BID REFERRED TO ABOVE, BUT THE ISSUE OF THE ORDER IS CONTINGENT UPON FUNDS BEING AVAILABLE.

"2. IF SUFFICIENT FUNDS ARE FOUND AVAILABLE BEFORE JULY 1ST, THE ORDER MAY BE ISSUED AT ANY TIME PRIOR TO THAT DATE; OTHERWISE THE ORDER WILL BE ISSUED ON OR SHORTLY AFTER JULY 1ST.

"RESPECTFULLY,

"J. T. YATES,

"SUPERINTENDENT.

"BY J. H. SERRICK,

"PURCHASING AGENT.'

THE BIDS UNDER THIS PROPOSAL 48807 WERE SUBMITTED ON THE BASIS OF CODE COMPLIANCE, AND IN VIEW OF YOUR DECISION OF JULY 1, 1935, A 63153, A- 63252, A-63295, THE BUREAU, ON JULY 5, 1935, DIRECTED THE SUPERINTENDENT OF THE THIRD DISTRICT TO REJECT THE BIDS RECEIVED ON JUNE 12, 1935, AND TO READVERTISE FOR THIS MATERIAL.

THE SUPERINTENDENT, IN ACCORDANCE WITH INSTRUCTIONS, READVERTISED AND IN RESPONSE TO THIS SECOND ADVERTISEMENT A NUMBER OF BIDS WERE RECEIVED,THE LOWEST BEING SUBMITTED BY THE ARLINGTON FOUNDRY, NEW YORK, IN THE AMOUNT OF $1,729.70 PROPOSAL NO. 49114.

THE UNITED DRY DOCKS, INC., DID NOT SUBMIT A BID ON THE SECOND ADVERTISEMENT, PROPOSAL NO. 49114, AND HAVE INFORMALLY PROTESTED AGAINST AWARDING THE CONTRACT TO ANY BIDDER OTHER THAN ITSELF, STATING THAT IT CONSIDERED THAT IT HAD A CONTRACT FOR FURNISHING THIS MATERIAL AND HAD GONE TO SOME EXPENSE IN PREPARATION FOR THE COMPLETION OF SAID CONTRACT.

THEREFORE, IN VIEW OF THE CIRCUMSTANCES IN THIS CASE, YOUR DECISION IS RESPECTFULLY REQUESTED AS TO WHETHER THIS DEPARTMENT IS AUTHORIZED TO ACCEPT THE BID OF THE UNITED DRY DOCKS, INC., IN THE AMOUNT OF $1,845, ON THE FIRST ADVERTISEMENT PROPOSAL NO. 48807, OR WHETHER IT SHOULD REJECT ALL BIDS FIRST RECEIVED, INCLUDING THIS PROPOSAL, AND ACCEPT THE LOW BID OF THE ARLINGTON FOUNDRY ON THE SECOND ADVERTISEMENT, PROPOSAL NO. 49114.

ALL PERTINENT PAPERS IN REGARD TO THE ABOVE MATTER ARE SUBMITTED HEREWITH, THE RETURN OF WHICH IS REQUESTED WHEN THEY HAVE SERVED THEIR PURPOSE.

THE QUOTED LETTER OF JUNE 20, 1935, FROM THE PURCHASING AGENT TO THE UNITED DRY DOCKS, INC., DID NOT CONSTITUTE AN ACCEPTANCE OF THE BID SUBMITTED BY THAT COMPANY. IT WAS NOTHING MORE THAN AN EXPRESSION OF AN INTENT TO BE EXERCISED AT SOME INDEFINITE DATE IN THE FUTURE TO ACCEPT THE BID. BEFORE THAT INTENT WAS MADE MANIFEST IN A DEFINITE ACCEPTANCE OF THE BID--- AN ACCEPTANCE SUFFICIENT, WITH THE PROPOSAL, TO CONSTITUTE A CONTRACT BINDING ON THE CONTRACTOR TO PERFORM IN ACCORDANCE WITH ITS TERMS --- THE BID WAS REJECTED AND THERE WAS READVERTISEMENT, AS THE RESULT OF WHICH THE UNITED STATES RECEIVED A LOWER BID FOR THE PERFORMANCE OF THE WORK.

ACCORDINGLY, YOU ARE ADVISED THAT ACCEPTANCE OF OTHER THAN THE LOW BID OF THE ARLINGTON FOUNDRY FOR THE DELIVERY OF THE CASTINGS IS NOT AUTHORIZED.