B-100550, FEB 5, 1951

B-100550: Feb 5, 1951

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

PRECIS-UNAVAILABLE THE SECRETARY OF THE AIR FORCE: I HAVE YOUR LETTER OF JANUARY 4. RELATIVE TO AN ERROR ALLEGED BY THE MEMPHIS BLUE PRINT AND SUPPLY COMPANY TO HAVE BEEN MADE IN ITS VERBAL BID OF OCTOBER 24. IS BASED. THE VERBAL BID OF THE COMPANY WAS ACCEPTED AS TO ALL ITEMS QUOTED ON AND PURCHASE ORDER NO. (40-087) 51-3149 WAS ISSUED ON NOVEMBER 2. THE 1/2" SIGNWRITER BRUSHES WERE DESIGNATED ON SAID PURCHASE ORDER AS ITEM 5. WHICH WAS SIGNED BY MR. "WE ARE WRITING TO YOU IN REGARD TO INCREASING THE PRICE ON THIS ITEM TO READ $2.95 EACH OR A TOTAL OF $100.30 INSTEAD OF $47.60. IT IS STATED THAT "IT WOULD APPEAR THAT MR. RISTIG MADE AN ERROR IN QUOTING ON THE WRONG SIZE OF BRUSH BUT THERE IS ALSO THE POSSIBILITY THAT MRS.

B-100550, FEB 5, 1951

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

I HAVE YOUR LETTER OF JANUARY 4, 1951, WITH ENCLOSURES, RELATIVE TO AN ERROR ALLEGED BY THE MEMPHIS BLUE PRINT AND SUPPLY COMPANY TO HAVE BEEN MADE IN ITS VERBAL BID OF OCTOBER 24, 1950, ON WHICH UNNUMBERED CONTRACT DATED NOVEMBER 2, 1950, IS BASED. YOU REQUEST A DECISION AS TO THE ACTION TO BE TAKEN IN THE MATTER.

IT APPEARS THAT THE MALLORY AF SPECIALIZED DEPOT, MEMPHIS, TENNESSEE, BY TELEPHONE, REQUESTED THE MEMPHIS BLUE PRINT AND SUPPLY COMPANY TO QUOTE PRICES ON FIVE TYPES OF BRUSHES, AND THAT IN REPLY THE COMPANY VERBALLY QUOTED CERTAIN PRICES INCLUDING A PRICE OF $1.40 EACH FOR THE 34-1/2" FLAT RED SABLE SIGNWRITER BRUSHES. THE VERBAL BID OF THE COMPANY WAS ACCEPTED AS TO ALL ITEMS QUOTED ON AND PURCHASE ORDER NO. (40-087) 51-3149 WAS ISSUED ON NOVEMBER 2, 1950, REQUESTING THE COMPANY TO DELIVER THE BRUSHES. THE 1/2" SIGNWRITER BRUSHES WERE DESIGNATED ON SAID PURCHASE ORDER AS ITEM 5.

UPON RECEIPT OF SAID PURCHASE ORDER, THE MEMPHIS BLUE PRINT AND SUPPLY COMPANY ADVISED BY LETTER DATED NOVEMBER 10, 1950, WHICH WAS SIGNED BY MR. RISTIG, ASSISTANT MANAGER OF THE COMPANY, AS FOLLOWS:

"REFERRING TO YOUR ORDER NO. (40-087) 51-3149, ITEM #5. WE WISH TO ADVISE THAT THRU SOME ERROR IN OUR QUOTATION ON THIS ITEM WE QUOTED A PRICE OF $1.40 EACH ON 1/4" BRUSHES.

"WE ARE WRITING TO YOU IN REGARD TO INCREASING THE PRICE ON THIS ITEM TO READ $2.95 EACH OR A TOTAL OF $100.30 INSTEAD OF $47.60, WHICH LEAVES A BALANCE DUE US OF $52.70."

IN A REPORT DATED NOVEMBER 22, 1950, FROM THE CONTRACTING OFFICER, IT IS STATED THAT "IT WOULD APPEAR THAT MR. RISTIG MADE AN ERROR IN QUOTING ON THE WRONG SIZE OF BRUSH BUT THERE IS ALSO THE POSSIBILITY THAT MRS. HIGGINS, THE NEGOTIATOR, COULD HAVE REQUESTED QUOTATION ON THE SMALLER SIZE." THE ABSTRACT OF BIDS SHOWS THAT THE PRICES BID BY THE MEMPHIS BLUE PRINT AND SUPPLY COMPANY ON ITEMS 1 TO 4 INCLUSIVE, ARE EITHER EQUAL TO OR SLIGHTLY LESS THAN THE ONLY OTHER PRICES BID THEREON, BUT THAT ON ITEM 5 - THE ITEM ON WHICH ERROR IS ALLEGED - THE PRICE BID BY THE COMPANY IS LESS THAN ONE-HALF OF THE OTHER BID THEREON.

ON THE BASIS OF THE FACTS OF RECORD, THERE APPEARS LITTLE DOUBT THAT THE MEMPHIS BLUE PRINT AND SUPPLY COMPANY MADE AN ERROR IN QUOTING ON THE BRUSHES COVERED BY ITEM 5. ACCORDINGLY, PURCHASE ORDER NO. (40 087) 51- 3149 MAY BE AMENDED TO PROVIDE FOR A PRICE OF $2.95 EACH FOR ITEM 5 THEREOF, WHICH IS EQUAL TO THE ONLY OTHER BID ON SAID ITEM, AND PAYMENT IS AUTHORIZED TO BE MADE ON THAT BASIS - REFERENCE BEING MADE TO THIS DECISION ON THE VOUCHER COVERING PAYMENT FOR SAID ITEM.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT DATED NOVEMBER 22, 1950, ARE RETURNED HEREWITH.