B-115888(2), OCT 9, 1953

B-115888(2): Oct 9, 1953

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: REFERENCE IS MADE TO A LETTER DATED AUGUST 27. TO HAVE BEEN MADE IN ITS BID ON WHICH UNNUMBERED CONTRACT (PURCHASE ORDER NO. (04-606) 53-12135) DATED APRIL 24. WAS BASED. WHILE A COPY OF THE BID WAS NOT FORWARDED TO THIS OFFICE. THE COMPANY WAS AWARDED VARIOUS ITEMS INCLUDING ITEM NO. 5 COVERING ONE "8100 NL SHEAR. THE PRICE STIPULATED IN THE ORDER FOR THAT ITEM WAS $20.70 EACH. WHEN ONLY ONE BID IS RECEIVED ON AN ITEM - AS IN THE PRESENT CASE - THERE IS. WHERE THERE IS NO INDICATION OF ERROR ON THE FACE OF THE BID. ORDINARILY THERE IS NOTHING TO PLACE THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF ERROR IN THE BID ON SUCH ITEM.

B-115888(2), OCT 9, 1953

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED AUGUST 27, 1953, FROM THE DEPUTY DIRECTOR OF FINANCE, FURNISHING THE REPORT REQUESTED IN OFFICE LETTER OF JUNE 29, 1953, RELATIVE TO AN ERROR ALLEGED BY THE MCMASTER-CARR SUPPLY CO. TO HAVE BEEN MADE IN ITS BID ON WHICH UNNUMBERED CONTRACT (PURCHASE ORDER NO. (04-606) 53-12135) DATED APRIL 24, 1953, WAS BASED.

THE PROCUREMENT OFFICE, SMAMA, MCCLELLAN AIR FORCE BASE, REQUESTED BIDS FROM SEVEN SUPPLIERS FOR FURNISHING CERTAIN SUPPLIES. WHILE A COPY OF THE BID WAS NOT FORWARDED TO THIS OFFICE, IT APPEARS THAT IN RESPONSE TO THE INVITATION THE MCMASTER-CARR SUPPLY CO. SUBMITTED A BID DATED APRIL 13, 1953, OFFERING TO FURNISH CERTAIN OF THE SUPPLIES. THE COMPANY WAS AWARDED VARIOUS ITEMS INCLUDING ITEM NO. 5 COVERING ONE "8100 NL SHEAR, REIN ROD STOCK NO. 40 PG NO. 175 MCMASTER CARR CAT NO. 56," AT A PRICE OF $20.70 EACH.

IN A LETTER DATED MAY 21, 1953, THE CONTRACTOR ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID ON ITEM NO. 5 DUE TO THE MISPLACEMENT OF THE DECIMAL POINT AND, AS A CONSEQUENCE, THE PRICE STIPULATED IN THE ORDER FOR THAT ITEM WAS $20.70 EACH, WHEREAS IT SHOULD BE $207 EACH AND THE COMPANY REQUESTED PERMISSION TO INCREASE THE PRICE ACCORDINGLY. ALSO, IN THE LETTER, THE COMPANY INVITED ATTENTION TO A PRIOR PURCHASE ORDER (APPARENTLY NO. (04-606) 53-11157 RELATING TO REQUISITION NO. 17A-53 35530) ISSUED BY THE SAME CONTRACTING OFFICE COVERING THE IDENTICAL ARTICLE HERE INVOLVED AT A STATED PRICE OF $207 EACH.

WHEN ONLY ONE BID IS RECEIVED ON AN ITEM - AS IN THE PRESENT CASE - THERE IS, OF COURSE, NO BASIS FOR COMPARISON OF BIDS AND, CONSEQUENTLY, WHERE THERE IS NO INDICATION OF ERROR ON THE FACE OF THE BID, ORDINARILY THERE IS NOTHING TO PLACE THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF ERROR IN THE BID ON SUCH ITEM. SEE 17 COMP. GEN. 560; AND 26 ID. 415. HOWEVER, IN THIS CASE, IT APPEARS THAT THE CONTRACTOR QUOTED ONLY ONE- TENTH OF ITS INTENDED BID PRICE ON ITEM NO. 5. IN FIRST INDORSEMENT DATED JULY 24, 1953, THE CONTRACTING OFFICER RECOMMENDED RELIEF ON THE BASIS OF INFORMATION FURNISHED BY THE COMPANY "AND THE DIFFERENCE IN THE PRICE QUOTED BY MCMASTER CARR CATALOG #56, PAGE 175, STOCK #40."

ACCORDINGLY, IF THE RECORDS CONFIRM THE COMPANY'S STATEMENT THAT IT FORMERLY QUOTED A PRICE OF $207 EACH FOR THE IDENTICAL ARTICLE AND THAT IT WAS AWARDED THE CONTRACT THEREFOR AT THAT PRICE, OR IF THE CATALOG OF THE COMPANY SPECIFIES A PRICE OF $207 FOR THE ARTICLE COVERED BY ITEM NO. 5 OF THE CONTRACT, PAYMENT IS AUTHORIZED TO BE MADE THEREFOR AT SAID PRICE OF $207 EACH.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING PAYMENT OF THE PRICE HEREIN AUTHORIZED.