B-124047, JUN. 6, 1955

B-124047: Jun 6, 1955

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TO THE HONORABLE SECRETARY OF THE ARMY: REFERENCE IS MADE TO YOUR LETTER DATED MAY 20. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR ALLEGED BY IRVING WOLF TO HAVE BEEN MADE ON ITEM 14 OF HIS BID ON WHICH CONTRACT NO. WAS AWARDED. THE EXTENDED TOTAL WAS INCORRECT FOR THE UNIT PRICE SHOWN. WAS THE CORRECT TOTAL FOR THE ALLEGED INTENDED BID OF $0.0055 PER POUND. WHILE THIS WAS IN ACCORDANCE WITH THE TERMS OF THE INVITATION. IT APPEARS THAT THE DISPARITY BETWEEN THE UNIT PRICE STATED AND THE OTHER BIDS RECEIVED SHOULD HAVE CREATED SUFFICIENT DOUBT AS TO THE BIDDER'S INTENTION TO REQUIRE VERIFICATION. ESPECIALLY SINCE THE BID OF $0.055 IS REPORTED ALSO TO HAVE BEEN IN EXCESS OF THE PREVAILING MARKET PRICE FOR SCRAP RUBBER.

B-124047, JUN. 6, 1955

TO THE HONORABLE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 20, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR ALLEGED BY IRVING WOLF TO HAVE BEEN MADE ON ITEM 14 OF HIS BID ON WHICH CONTRACT NO. DA-S-23-037-AV-1632, DATED DECEMBER 8, 1954, WAS AWARDED.

THE CONTRACTOR'S BID AS SUBMITTED SHOWED A UNIT PRICE OF $0.055 PER POUND, AND A TOTAL OF $16.50, FOR THE 3,000 POUNDS OF RUBBER SCRAP OFFERED FOR SALE UNDER ITEM 14. THE EXTENDED TOTAL WAS INCORRECT FOR THE UNIT PRICE SHOWN, BUT WAS THE CORRECT TOTAL FOR THE ALLEGED INTENDED BID OF $0.0055 PER POUND. THE CONTRACTING OFFICER REPORTS THAT A CLERK IN THE PROPERTY DISPOSAL OFFICE CHANGED THE TOTAL TO CORRESPOND TO THE CORRECT PRODUCT OF THE UNIT PRICE BID TIMES THE NUMBER OF POUNDS OFFERED FOR SALE. WHILE THIS WAS IN ACCORDANCE WITH THE TERMS OF THE INVITATION, WHICH PROVIDED THAT UNIT PRICES SHOULD GOVERN IN THE EVENT OF ERROR IN EXTENSION, IT APPEARS THAT THE DISPARITY BETWEEN THE UNIT PRICE STATED AND THE OTHER BIDS RECEIVED SHOULD HAVE CREATED SUFFICIENT DOUBT AS TO THE BIDDER'S INTENTION TO REQUIRE VERIFICATION, ESPECIALLY SINCE THE BID OF $0.055 IS REPORTED ALSO TO HAVE BEEN IN EXCESS OF THE PREVAILING MARKET PRICE FOR SCRAP RUBBER.

IN THE CIRCUMSTANCES, THE ERROR IS SUFFICIENTLY ESTABLISHED, AND THE CONTRACT MAY BE CANCELED.

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

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTOR'S LETTER DATED DECEMBER 20, 1954, THE CONTRACTING OFFICER'S FINDINGS OF FACT, AND A COPY OF THE ABSTRACT OF BIDS, ARE RETURNED HEREWITH.