B-124090, JUN. 9, 1955

B-124090: Jun 9, 1955

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO YOUR LETTER DATED MAY 23. TO HAVE BEEN MADE ON ITEM 2 OF ITS BID ON WHICH. WAS BASED. WHILE THE EQUIPMENT ON WHICH IT QUOTED UNDER ITEM 2 IS THAT NORMALLY SUPPLIED. A REVIEW OF THE SPECIFICATION REQUIREMENTS DISCLOSED THAT IT SHOULD HAVE QUOTED ON ITS MODEL NO. IN VIEW THEREOF AND SINCE IT IS REPORTED THAT THE MB MANUFACTURING COMPANY. WAS THE ONLY BIDDER AND THE SOLE SOURCE OF SUPPLY FOR THE PROCUREMENT INVOLVED. THAT THERE IS A CONTINUING NEED FOR THE ITEM. ARE RETURNED.

B-124090, JUN. 9, 1955

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 23, 1955, WITH ENCLOSURES, RELATIVE TO AN ERROR ALLEGED BY THE MB MANUFACTURING COMPANY, INC., TO HAVE BEEN MADE ON ITEM 2 OF ITS BID ON WHICH, TOGETHER WITH ITEM 1, PURCHASE ORDER NO. 304-55 (13257), DATED JULY 15, 1954, WAS BASED.

THE RECORD SHOWS THAT IN RESPONSE TO THE INVITATION FOR BIDS FOR THE FURNISHING OF AN ELECTRONIC TESTING DEVICE, INCLUDING AN "EXCITER" UNDER ITEM 1 AND SPECIFIED POWER SUPPLY THEREFOR UNDER ITEM 2, THE COMPANY QUOTED A PRICE OF $978.62 FOR THE LATTER ITEM, SPECIFICALLY DESIGNATING ITS MODEL NO. 1702134 AS THAT PROPOSED TO BE FURNISHED. BY LETTER DATED JULY 23, 1954, THE COMPANY ALLEGED THAT, WHILE THE EQUIPMENT ON WHICH IT QUOTED UNDER ITEM 2 IS THAT NORMALLY SUPPLIED, A REVIEW OF THE SPECIFICATION REQUIREMENTS DISCLOSED THAT IT SHOULD HAVE QUOTED ON ITS MODEL NO. T702734, HAVING A DELIVERED PRICE OF $1,475, AND REQUESTED THAT THE CONTRACT PRICE BE INCREASED ACCORDINGLY.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, INCLUDING COPIES OF THE COMPANY'S WORKSHEETS, THERE CAN BE NO DOUBT THAT THE COMPANY MADE A BONA FIDE ERROR ON ITEM 2, AS ALLEGED, AND THAT CONSTRUCTIVE NOTICE THEREOF MAY BE IMPUTED TO THE CONTRACTING OFFICER BY REASON OF THE COMPANY'S BID OF $1,475 IN RESPONSE TO REQUEST OF MAY 27, 1954, FOR THE FURNISHING OF IDENTICAL EQUIPMENT. IN VIEW THEREOF AND SINCE IT IS REPORTED THAT THE MB MANUFACTURING COMPANY, INC., WAS THE ONLY BIDDER AND THE SOLE SOURCE OF SUPPLY FOR THE PROCUREMENT INVOLVED; THAT COMPETITIVE PRICES CAN NOT BE SECURED; THAT THERE IS A CONTINUING NEED FOR THE ITEM; AND THAT THE COMPANY REFUSES TO DELIVER AT THE PRICE QUOTED, THE PURCHASE ORDER MAY BE AMENDED TO SHOW A PRICE OF $1,475 FOR ITEM 2, AND THE TOTAL CONTRACT PRICE INCREASED ACCORDINGLY. A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING PAYMENT OF THE PURCHASE ORDER.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTOR'S LETTERS OF JULY 23 AND AUGUST 18, 1954, AND APRIL 15, 1955, AND THE CONTRACTING OFFICER'S STATEMENTS OF JANUARY 3 AND APRIL 27, 1955, ARE RETURNED.