B-110906, NOV 7, 1952

B-110906: Nov 7, 1952

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PRECIS-UNAVAILABLE THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 12. WITH WHICH THERE WAS FORWARDED FOR A REPORT A LETTER DATED JULY 9. IS BASED. THE COMPANY ADVISED THE CONTINUING OFFICE AS FOLLOWS: "WE HAVE MADE A TYPOGRAPHICAL ERROR IN QUOTING ITEM #17 AND WHEN TO RESPECTFULLY REQUEST YOUR PERMISSION TO CHANGE THIS TO THE CORRECT PRICE. "ITEM #17 - 8800-N100758 BUSHING CONDUIT 3" WAS QUOTED IN ERROR BY US AT $37.40 PER THOUSAND AND SHOULD HAVE BEEN QUOTED AT $37.40 PER HUNDRED. AM SURE THAT IF YOU WILL CHECK YOUR OTHER QUOTATIONS THAT THEY WILL BE AROUND THIS PRICE.". ADVISED AS FOLLOWS: "OUR REQUEST TO CHANGE THE QUOTED PRICE OF ITEM #17 FROM $37.40 PER THOUSAND TO $37.40 PER HUNDRED IS CORRECT.

B-110906, NOV 7, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 12, 1952, FROM THE DIRECTOR OF FINANCE, REPLYING TO LETTER OF JULY 24, 1952, WITH WHICH THERE WAS FORWARDED FOR A REPORT A LETTER DATED JULY 9, 1952, WHEREIN THE WESTINGHOUSE ELECTRIC SUPPLY COMPANY ALLEGED THAT AN ERROR HAD BEEN MADE ON ITEM NO. 17 OF ITS BID DATED MAY 28, 1952, ON WHICH CONTRACT NO. AF 09(603)-11625 DATED JUNE 10, 1952, IS BASED.

IN RESPONSE TO AN INVITATION TO BID FOR FURNISHING VARIOUS ITEMS OF ELECTRICAL SUPPLIES, THE AFORE NAMED COMPANY SUBMITTED A BID TO ROBINS AIR FORCE BASE, GEORGIA, WHEREIN IT OFFERED TO FURNISH, AMONG OTHERS, ITEM NO. 17 COVERING 1,000 "108 3" CONDUIT BU" AT $37.40 PER THOUSAND. THE ACCEPTANCE OF THE BID RESULTED IN THE ABOVE-CITED CONTRACT. BY LETTER OF JUNE 23, 1952, THE COMPANY ADVISED THE CONTINUING OFFICE AS FOLLOWS:

"WE HAVE MADE A TYPOGRAPHICAL ERROR IN QUOTING ITEM #17 AND WHEN TO RESPECTFULLY REQUEST YOUR PERMISSION TO CHANGE THIS TO THE CORRECT PRICE.

"ITEM #17 - 8800-N100758 BUSHING CONDUIT 3" WAS QUOTED IN ERROR BY US AT $37.40 PER THOUSAND AND SHOULD HAVE BEEN QUOTED AT $37.40 PER HUNDRED. AM SURE THAT IF YOU WILL CHECK YOUR OTHER QUOTATIONS THAT THEY WILL BE AROUND THIS PRICE."

THE COMPANY, BY THE REFERRED-TO LETTER OF JULY 9, 1952, REQUESTED AUTHORITY TO INCREASE THE PRICE OF ITEM NO. 17 OF THE CONTRACT AND IN SUBSTANTIATION OF ITS ALLEGATION OF ERROR AND INTENDED BID PRICE, IT FORWARDED A SHEET FROM ITS PRINTED CATALOG SHOWING THE STANDARD NET PRICE OF THE BUSHINGS TO BE $42.50 PER HUNDRED. ALSO, THE COMPANY, BY LETTER DATED JULY 29, 1952, ADVISED AS FOLLOWS:

"OUR REQUEST TO CHANGE THE QUOTED PRICE OF ITEM #17 FROM $37.40 PER THOUSAND TO $37.40 PER HUNDRED IS CORRECT.

"THE PRICES SHOWN ON THE CATALOGUE PAGE SENT TO YOU ARE THE STANDARD MARKET NET PRICES. WE DID HOWEVER, EXTEND A DISCOUNT OF 12% IN ORDER TO BE MORE COMPETITIVE.

"THE ACTUAL COST TO MY COMPANY FOR THESE ITEMS ARE $34.00 PER HUNDRED."

THE ABSTRACT OF BIDS SHOWS THAT THE THREE OTHER BIDS ON ITEM NO. 17 WERE $41.40, $42.32 AND $46 PER HUNDRED, RESPECTIVELY. THUS, THE COMPANY'S BID OF $37.40 PER THOUSAND IS ENTIRELY OUT OF LINE WITH THE OTHER BIDS RECEIVED, WHEREAS ITS INTENDED BID IS IN LINE THEREWITH. IT WOULD APPEAR THAT THE DISCREPANCY BETWEEN THE COMPANY'S BID ON ITEM NO. 17 AND THE OTHER BIDS THEREON WAS SO GREAT THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE PROBABILITY OF ERROR AND, THEREFORE, THE COMPANY SHOULD HAVE BEEN REQUESTED TO VERIFY ITS BID PRICE ON ITEM NO. 17 PRIOR TO THE ACCEPTANCE THEREOF. CONSEQUENTLY, THE ACCEPTANCE OF THE BID DID NOT OBLIGATE THE COMPANY TO FURNISH THE BUSHINGS UNDER ITEM NO. 17 AT ITS BID PRICE.

THERE APPEARS LITTLE DOUBT THAT THE COMPANY MADE A BONA FIDE MISTAKE ON ITEM NO. 17 OF ITS BID WITH RESPECT TO THE UNIT, AND THAT ITS INTENDED BID THEREON WAS INTENDED TO BE $37.40 PER HUNDRED. ACCORDINGLY, THIS OFFICE WILL INTERPOSE NO OBJECTION TO AMENDING THE CONTRACT TO PROVIDE FOR A PRICE OF $37.40 PER HUNDRED FOR THE BUSHINGS TO BE FURNISHED UNDER ITEM NO. 17.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE AMENDMENT TO THE CONTRACT.