B-110285, JUN 26, 1952

B-110285: Jun 26, 1952

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PRECIS-UNAVAILABLE THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED JUNE 13. THE QUESTION ARISES BECAUSE THE SUBJECT CONTRACT WAS AMENDED TO INCREASE THE UNIT PRICE AS A RESULT OF THE VENDOR'S ALLEGATION OF A MISTAKE IN ITS BID. THE BID WAS ACCEPTED MAY 21. THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT THE UNIT PRICE OF $19.30 SHOULD HAVE BEEN PER REAM (FIVE HUNDRED SHEETS) RATHER THAN PER THOUSAND SHEETS. THAT THE CORRECT PRICE PER THOUSAND SHEETS WAS $38.60. THE CONTRACT WAS AMENDED BY SUPPLEMENTAL AGREEMENT NO. 1. THE RECORD SHOWS THAT THE PAPER WAS DELIVERED TO AND ACCEPTED BY THE GOVERNMENT ON SEPTEMBER 17. THERE IS ATTACHED TO THE FILE A STATEMENT FROM THE PURCHASING OFFICE THAT AFTER THE AWARD OF THE CONTRACT INVOLVED.

B-110285, JUN 26, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED JUNE 13, 1952, WITH ENCLOSURES, FROM THE OFFICE OF THE DIRECTOR OF FINANCE, REQUESTING A DECISION AS TO THE PROPRIETY OF PAYMENT OF UNNUMBERED BUREAU VOUCHER, ADMINISTRATIVELY APPROVED IN THE AMOUNT OF $463.20, TO THE GRAHAM PAPER COMPANY FOR FURNISHING PAPER TO THE UNITED STATES AIR FORCE, MAXWELL AIR FORCE BASE, ALABAMA, UNDER CONTRACT NO. AF 01(028)-227, DATED MAY 21, 1951. THE QUESTION ARISES BECAUSE THE SUBJECT CONTRACT WAS AMENDED TO INCREASE THE UNIT PRICE AS A RESULT OF THE VENDOR'S ALLEGATION OF A MISTAKE IN ITS BID.

IT APPEARS THAT IN RESPONSE TO REQUEST NO. 01-028-51-128, DATED APRIL 18, 1951, ISSUED BY THE MAXWELL AIR FORCE BASE, ALABAMA, THE GRAHAM PAPER COMPANY SUBMITTED A BID DATED APRIL 26, 1951, OFFERING TO FURNISH AS AN ALTERNATE UNDER ITEM 7, 24,000 SHEETS OF GROUNDWOOD INTERNATIONAL PAPER FOR $19.30 PER THOUSAND SHEETS, OR FOR A TOTAL CONSIDERATION OF $463.20. THE BID WAS ACCEPTED MAY 21, 1951. BY LETTER DATED JULY 11, 1951, THE CONTRACTOR ADVISED THE PURCHASING AND CONTRACTING OFFICER, MAXWELL AIR FORCE BASE, ALABAMA, THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT THE UNIT PRICE OF $19.30 SHOULD HAVE BEEN PER REAM (FIVE HUNDRED SHEETS) RATHER THAN PER THOUSAND SHEETS; AND THAT THE CORRECT PRICE PER THOUSAND SHEETS WAS $38.60. THE CONTRACT WAS AMENDED BY SUPPLEMENTAL AGREEMENT NO. 1, DATED JULY 16, 1951, BY CHANGING THE QUANTITY AND UNIT PRICE OF ITEM 7 TO READ 12,000 SHEETS AT $38.60 PER THOUSAND SHEETS. THE RECORD SHOWS THAT THE PAPER WAS DELIVERED TO AND ACCEPTED BY THE GOVERNMENT ON SEPTEMBER 17, 1951.

THERE IS ATTACHED TO THE FILE A STATEMENT FROM THE PURCHASING OFFICE THAT AFTER THE AWARD OF THE CONTRACT INVOLVED, LOCAL PAPER CONCERNS WERE CONTACTED WITH REGARD TO THE PRICE OBTAINED FROM THE GRAHAM PAPER COMPANY AND SECURED ON THE SAME TYPE PAPER INVOLVED THE PRICES OF $22.80 AND $25 PER REAM. UNDER THE CIRCUMSTANCES, THERE IS NO DOUBT THAT THE ALLEGED ERROR AS TO THE UNIT WAS MADE IN THE BID OF THE GRAHAM PAPER COMPANY. SINCE THE PRICE OF $19.30 PER THOUSAND SHEETS IS SO FAR OUT OF LINE WITH THE MARKET PRICE OF THE PAPER, IT WOULD APPEAR UNCONSCIONABLE TO COMPEL THE COMPANY TO FURNISH THE PAPER AT ITS BID PRICE.

ACCORDINGLY, THE VOUCHER AND SUPPORTING PAPERS ARE RETURNED HEREWITH AND YOU ARE ADVISED THAT PAYMENT IN THE AMOUNT ADMINISTRATIVELY APPROVED IS AUTHORIZED, IF OTHERWISE CORRECT. REFERENCE TO THIS DECISION SHOULD BE MADE ON THE PAYMENT VOUCHER.