B-104113, SEP 18, 1952

B-104113: Sep 18, 1952

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PRECIS-UNAVAILABLE THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED JUNE 23. WITH WHICH THERE WAS FORWARDED FOR A REPORT A LETTER DATED MAY 22. WAS BASED. ANIOA 7154 FEDERAL MOTORS OR EQUAL" FOR WHICH A PRICE OF $2.50 PER ASSEMBLY WAS QUOTED. WERE AWARDED TO THE COMPANY. ADVISED THIS OFFICE THAT ITS QUOTATION OF $2.50 EACH ON ITEM NO. 1 WAS THE RESULT OF A TYPOGRAPHICAL ERROR AND THAT THE INTENDED BID PRICE ON SUCH ITEM WAS $5.50. ADVISED AS FOLLOWS: "WE CAN NOT FURNISH PRICE SHEETS BECAUSE THE PART NUMBER INVOLVED IS OF SPECIAL MILITARY NATURE. IS NOT PUBLISHED. OUR PRICES ARE OBTAINED FROM FEDERAL AS NEEDED FOR EACH QUOTATION MADE TO KELLY AF BASE. ARE CARDED. WE ARE ATTACHING THE CARD FROM OUR FILE SHOWING LIST AND NET PRICES RECEIVED FROM FEDERAL.

B-104113, SEP 18, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED JUNE 23, 1952, FROM THE DIRECTOR OF FINANCE, REPLYING TO LETTER OF JUNE 26, 1951, WITH WHICH THERE WAS FORWARDED FOR A REPORT A LETTER DATED MAY 22, 1951, WHEREIN THE MOTOR TRUCK SALES COMPANY, SAN ANTONIO, TEXAS, ALLEGED THAT AN ERROR HAD BEEN MADE ON ITEM NO. 1 OF ITS BID DATED MARCH 28, 1951, ON WHICH CONTRACT NO. AF 41(142)-499 DATED APRIL 27, 1951, WAS BASED.

IN RESPONSE TO A REQUEST FOR PROPOSAL ISSUED BY THE CONTRACTING OFFICE, SASP, SAAMA, KELLY AIR FORCE BASE, TEXAS, THE MOTOR TRUCK SALES COMPANY SUBMITTED A BID IN WHICH IT OFFERED TO FURNISH CERTAIN ITEMS OF SUPPLIES INCLUDING ITEM NO. 1, COVERING 15 "SHAFT ASSYPEDAL CLUTCH APPL TYPE F1 REO TRUCK (5119) FED NO. ANIOA 7154 FEDERAL MOTORS OR EQUAL" FOR WHICH A PRICE OF $2.50 PER ASSEMBLY WAS QUOTED. THREE ITEMS, INCLUDING ITEM NO. 1, WERE AWARDED TO THE COMPANY.

THE COMPANY, BY THE ABOVE REFERRED-TO LETTER OF MAY 22, 1951, ADVISED THIS OFFICE THAT ITS QUOTATION OF $2.50 EACH ON ITEM NO. 1 WAS THE RESULT OF A TYPOGRAPHICAL ERROR AND THAT THE INTENDED BID PRICE ON SUCH ITEM WAS $5.50, AND IN SUBSTANTIATION THEREOF IT REFERRED TO A PRIOR ORDER NO. 51- 19177.

UPON BEING REQUESTED BY OFFICE LETTER OF JUNE 26, 1951, TO FURNISH EVIDENCE IN SUBSTANTIATION OF INTENDED UNIT PRICE, THE COMPANY, BY LETTER OF SEPTEMBER 12, 1951, ADVISED AS FOLLOWS:

"WE CAN NOT FURNISH PRICE SHEETS BECAUSE THE PART NUMBER INVOLVED IS OF SPECIAL MILITARY NATURE, AND IS NOT PUBLISHED. OUR PRICES ARE OBTAINED FROM FEDERAL AS NEEDED FOR EACH QUOTATION MADE TO KELLY AF BASE, AND ARE CARDED. WE ARE ATTACHING THE CARD FROM OUR FILE SHOWING LIST AND NET PRICES RECEIVED FROM FEDERAL, AND DATE QUOTATION WAS RECEIVED. EXPLAINED IN OUR LETTER OF MAY 22, THE TYPIST ERRORED IN COPYING PRICE FROM CARD AND TYPED $2.50 INSTEAD OF $5.50 AS OUR QUOTED BID TO KELLY. YOU CAN ALSO SEE THAT OUR COST ON THE PART IS $4.03, PLUS 10%, MAKING A NET COST OF $4.43.

"WE HOPE YOU WILL FIND SUFFICIENT EVIDENCE HERE TO ALLOW CLAIM TO AT LEAST OUR COST OF PARTS, THE DIFFERENCE BEING BETWEEN $37.50 AND $66.65 OUR NET, MAKING AN INCREASE OF $29.15 OVER CONTRACT PRICE."

THE REFERRED-TO FILE CARD CONTAINED INFORMATION AS FOLLOWS:

FEDERAL 10A7154

SHAFT

LIST EA: 5.75 NET EA: 4.03

QUOTE: 5.50 5-9-51 #15 QUOTATION

DEL: 180 DAYS

FOB DETROIT PLUS TAX PLUS 10%

BY FIRST INDORSEMENT DATED OCTOBER 4, 1951, THE CONTRACTING OFFICER ADVISED THAT DELIVERY OF ITEM NO. 1 HAD BEEN COMPLETED; PAYMENT HAD BEEN MADE THEREFOR AT THE CONTRACT PRICE; AND THAT -

"RESEARCH REVEALS THIS ITEM WAS PREVIOUSLY PURCHASED ON ORDER 51 19177 FROM CLAIMANT AT $5.50 EACH. THEREFORE, IT WOULD APPEAR THE CONTRACTOR'S CONTENTION OF ERROR IN BID IS BORNE OUT. IT IS ADMINISTRATIVELY RECOMMENDED THE CLAIM BE ALLOWED."

THERE APPEARS LITTLE DOUBT THAT THE COMPANY MADE A BONA FIDE ERROR ON ITEM NO. 1 OF ITS BID AND IN VIEW OF THE EVIDENCE OF RECORD, THE COMPANY SHOULD NOT BE REQUIRED TO FURNISH THE ASSEMBLIES FOR THE ACCEPTED BID PRICE OF $2.50 EACH.

ACCORDINGLY, PAYMENT IS AUTHORIZED TO BE MADE TO THE MOTOR TRUCK SALES COMPANY FOR THE DIFFERENCE BETWEEN ITS COST OF $4.43 PER ASSEMBLY AND THE PRICE OF $2.50 EACH HERETOFORE PAID THEREFOR, OR $1.93 EACH, FOR THE ASSEMBLIES FURNISHED UNDER THE ABOVE-CITED CONTRACT.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING THE ADDITIONAL PAYMENT.