B-120658, DEC 6, 1954

B-120658, DEC 6, 1954

PRECIS-UNAVAILABLE

MR. SECRETARY:

REFERENCE IS MADE TO A LETTER DATED NOVEMBER 12, 1954, WITH ENCLOSURES, FROM THE CHIEF, SETTLEMENTS DIVISION, AIR FORCE FINANCE CENTER, DENVER, COLORADO, FURNISHING THE REPORT REQUESTED IN OFFICE LETTER OF JULY 14, 1954, RELATIVE TO AN ERROR ALLEGED BY MOTOR TRUCK SALES COMPANY TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. AF 09(603)-25385, DATED APRIL 30, 1954, WAS BASED.

ERROR WAS APPARENT ON THE FACE OF THE COMPANY'S BID ON ITEM NO. 3 SINCE THE UNIT PRICE OF $25.42 MULTIPLIED BY THE QUANTITY (25) DOES NOT EQUAL THE BID PRICE OF $1,635.50, AS EXTENDED TO THE AMOUNT COLUMN FOR THE ITEM. THIS INCONSISTENCY BETWEEN THE UNIT PRICE AND THE TOTAL BID PRICE SHOULD HAVE PLACED THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF ERROR IN THE BID. THEREFORE, THE COMPANY SHOULD HAVE BEEN REQUESTED TO VERIFY ITS BID PRICE ON ITEM NO. 3 PRIOR TO AWARD OF THAT ITEM.

UPON RECEIPT OF THE CONTRACT THE CONTRACTOR IMMEDIATELY ADVISED OF THE ERROR, FORWARDED A PHOTOSTATIC COPY OF ITS WORKSHEET, ON WHICH THE ALLEGED INTENDED UNIT PRICE FOR ITEM NO. 3 IS SHOWN TO BE $65.42, AND EXPLAINED THAT THE MISTAKE WAS MADE BY ITS TYPIST IN TRANSPOSING THE FIGURES FROM WORKSHEET TO THE BID.

THE FACTS AND EVIDENCE OF RECORD ESTABLISH THAT A BONA FIDE ERROR WAS MADE IN THE CONTRACTOR'S BID, AS ALLEGED, AND THAT TWO PRIOR PURCHASES OF THE SAME TYPE FILTER AT A CONTRACT PRICE OF $37.74 EACH WERE MADE DURING THE CURRENT YEAR FROM THE HERCULES MOTORS CORPORATION, WHICH CORPORATION SUBMITTED THE ONLY OTHER BID OF $37.74 EACH ON ITEM NO. 3 IN THE INSTANT PROCUREMENT.

ACCORDINGLY, PAYMENT IS AUTHORIZED TO BE MADE TO MOTOR TRUCK SALES COMPANY FOR ANY FILTERS DELIVERED UNDER ITEM NO. 3 AT $37.74 EACH - THE AMOUNT OF THE NEXT LOWEST BID.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT OR ON THE VOUCHER COVERING SUCH PAYMENT.