B-124073, JUN. 6, 1955

B-124073: Jun 6, 1955

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TO THE HONORABLE SECRETARY OF THE NAVY: REFERENCE IS MADE TO YOUR LETTER DATED MAY 23. RELATIVE TO AN ERROR ALLEGED BY BENJAMIN AND JAY CORPORATION TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. IS BASED. B -150-55 FOR THE SALE OF GOVERNMENT PROPERTY IN THAT THE BID THEREON OF $116 EACH WAS FOR A COMPLETE REVERSE REDUCTION GEAR AND NOT FOR A MERE PART OR PINION THEREOF. THE RECORD INDICATES THAT THE BID WAS ENTIRELY OUT OF LINE WITH THE SIX OTHER BIDS RECEIVED ON THIS ITEM RANGING FROM $1.05 TO $0.10 EACH AND THAT IT WAS MARKEDLY MORE THAN THE REPORTED LOCAL PRICE FOR A NEW GEAR RANGING FROM $42.35 TO $49.84. THE CONTRACTING OFFICER STATES THAT SINCE THE BID WAS EXCESSIVE WHEN COMPARED TO THE OTHER BIDS ON THIS ITEM HE SHOULD NOT HAVE ACCEPTED THE BID WITHOUT VERIFICATION.

B-124073, JUN. 6, 1955

TO THE HONORABLE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 23, 1955, WITH ENCLOSURES, RELATIVE TO AN ERROR ALLEGED BY BENJAMIN AND JAY CORPORATION TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. N261S-41, DATED MARCH 11, 1955, IS BASED.

BY LETTER OF MARCH 23, 1955, THE CONTRACTOR ADVISED THE CONTRACTING OFFICER THAT IT HAD MADE AN ERROR IN ITS BID ON ITEM 3 OF INVITATION NO. B -150-55 FOR THE SALE OF GOVERNMENT PROPERTY IN THAT THE BID THEREON OF $116 EACH WAS FOR A COMPLETE REVERSE REDUCTION GEAR AND NOT FOR A MERE PART OR PINION THEREOF, AS COVERED BY THE INVITATION. THE RECORD INDICATES THAT THE BID WAS ENTIRELY OUT OF LINE WITH THE SIX OTHER BIDS RECEIVED ON THIS ITEM RANGING FROM $1.05 TO $0.10 EACH AND THAT IT WAS MARKEDLY MORE THAN THE REPORTED LOCAL PRICE FOR A NEW GEAR RANGING FROM $42.35 TO $49.84. THE CONTRACTING OFFICER STATES THAT SINCE THE BID WAS EXCESSIVE WHEN COMPARED TO THE OTHER BIDS ON THIS ITEM HE SHOULD NOT HAVE ACCEPTED THE BID WITHOUT VERIFICATION.

ACCORDINGLY, SINCE IT APPEARS THAT AN ERROR ACTUALLY WAS MADE AS CLAIMED; THAT THE CONTRACTING OFFICER SHOULD HAVE NOTICED THE PROBABILITY THEREOF AND REQUESTED VERIFICATION OF THE BID PRIOR TO AWARD; AND THAT THE PROPERTY INVOLVED IS STILL IN THE POSSESSION OF THE GOVERNMENT, THE CONTRACT MAY BE CANCELED WITHOUT LIABILITY TO THE COMPANY.

THE PAPERS, WITH THE EXCEPTION OF THE COMPANY'S LETTER DATED MARCH 23, 1955, THE STATEMENT OF THE CONTRACTING OFFICER, AND THE COPY OF THE ABSTRACT OF BIDS, ARE RETURNED HEREWITH.