B-107466, SEP 2, 1952

B-107466: Sep 2, 1952

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PRECIS-UNAVAILABLE THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED JULY 24. WITH WHICH THERE WAS FORWARDED FOR A REPORT A LETTER DATED DECEMBER 24. WAS BASED. WERE AWARDED TO THE COMPANY. IS SHOWN TO BE $10.90. THE APPLICABLE DISCOUNT THEREON IS SHOWN TO BE 55 PERCENT. THE NET CATALOG PRICE OF THE 5-FOOT DUCT NO. 20443 IS $4.905. ERROR WAS APPARENT ON THE FACE OF THE BID SINCE IT IS OBVIOUS THAT THE COMPANY DID NOT INTEND TO QUOTE THE IDENTICAL PRICE FOR ITEM 1989-2 COVERING A DUCT 4" X 4" AS FOR ITEM 1989-1 COVERING A DUCT 21/2" X 21/2". $1.068 AND $5.99 THE CONCLUSION IS WARRANTED THAT THE COMPANY SHOULD HAVE BEEN AFFORDED AN OPPORTUNITY TO VERIFY ITS BID PRICE ON ITEM NO. 1989-2 PRIOR TO THE ACCEPTANCE THEREOF.

B-107466, SEP 2, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED JULY 24, 1952, WITH ENCLOSURES, FROM THE DIRECTOR OF FINANCE, REPLYING TO LETTER OF JANUARY 22, 1952, WITH WHICH THERE WAS FORWARDED FOR A REPORT A LETTER DATED DECEMBER 24, 1951, WHEREIN THE SOUTHERN EQUIPMENT COMPANY, SAN ANTONIO, TEXAS, ALLEGED THAT AN ERROR HAD BEEN MADE ON ITEM NO. 1989-2 OF ITS BID OF SEPTEMBER 27, 1951, ON WHICH CONTRACT NO. AF 41(608) 358 DATED OCTOBER 15, 1951, WAS BASED.

IN RESPONSE TO A REQUEST FOR PROPOSAL ISSUED BY THE KELLY AIR FORCE BASE, TEXAS, THE SOUTHERN EQUIPMENT COMPANY SUBMITTED A BID IN WHICH IT OFFERED TO FURNISH, AMONG OTHERS, ITEM NO. 1989-1, COVERING 400 FEET OF "DUCT 21/2 X 21/2 IN X 5 FT 08B LENGTH SQUARE D 20243 OR EQUAL (8800 NL0047)" AT $0.764 PER FOOT, AND ITEM NO. 1989-2, COVERING 400 FEET OF "DUCT - 4X4 IN X 5 FT LGTH SQ D 20443 OR EQUAL (8800-NL00450)," AT $0.764 PER FOOT. THE ABOVE TWO ITEMS, TOGETHER WITH TWO OTHERS, WERE AWARDED TO THE COMPANY, RESULTING IN THE ABOVE-CITED CONTRACT.

BY LETTER OF OCTOBER 30, 1951, THE COMPANY ADVISED THE CONTRACTING OFFICE THAT AN ERROR HAD BEEN MADE IN TYPING THE UNIT PRICE FOR ITEM NO. 1989-2 BY OMITTING THE FIRST TWO DIGITS THEREOF WHICH RESULTED IN AN ERRONEOUS QUOTATION OF $0.764 INSTEAD OF THE INTENDED BID PRICE OF $1.0764 AND, THEREFORE, IT REQUESTED THAT THE CONTRACT PRICE OF SAID ITEM BE INCREASED ACCORDINGLY.

BY LETTER DATED FEBRUARY 15, 1952, THE COMPANY SUBMITTED TO THIS OFFICE A COPY OF THE SQUARE D COMPANY'S PUBLISHED CATALOG PRICE LIST SB 133, DATED DECEMBER 1, 1950, AND A PRINTED DISCOUNT SCHEDULE DE-4, DATED JUNE 11, 1951. THE LIST PRICE APPLICABLE TO THE SQUARE D DUCT CATALOG NO. 20443, CALLED FOR UNDER ITEM NO. 1989-2, IS SHOWN TO BE $10.90, AND THE APPLICABLE DISCOUNT THEREON IS SHOWN TO BE 55 PERCENT. THUS, THE NET CATALOG PRICE OF THE 5-FOOT DUCT NO. 20443 IS $4.905, OR $0.981 PER FOOT.

ERROR WAS APPARENT ON THE FACE OF THE BID SINCE IT IS OBVIOUS THAT THE COMPANY DID NOT INTEND TO QUOTE THE IDENTICAL PRICE FOR ITEM 1989-2 COVERING A DUCT 4" X 4" AS FOR ITEM 1989-1 COVERING A DUCT 21/2" X 21/2". THE ABSTRACT OF BIDS SHOWS THAT EACH OF THE THREE OTHER BIDDERS QUOTED A HIGHER PRICE ON ITEM 1989-2 THAN ON ITEM 1989-1. IN VIEW THEREOF, AND OF THE DIFFERENCE BETWEEN THE COMPANY'S BID OF $0.764 FOR ITEM 1989-2 AND THE OTHER BIDS THEREON OF $1.03, $1.068 AND $5.99 THE CONCLUSION IS WARRANTED THAT THE COMPANY SHOULD HAVE BEEN AFFORDED AN OPPORTUNITY TO VERIFY ITS BID PRICE ON ITEM NO. 1989-2 PRIOR TO THE ACCEPTANCE THEREOF.

ACCORDINGLY, SINCE THE ALLEGED INTENDED BID OF $1.0764 PER FOOT IS NOT THE LOWEST BID ON ITEM 1989-2 AND SINCE IT IS REPORTED THAT THERE HAS BEEN NO DELIVERY OF THE ITEM, THE CONTRACT AS TO SAID ITEM SHOULD BE CANCELLED.