B-124155, SEP. 16, 1955

B-124155: Sep 16, 1955

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TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED AUGUST 24. ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. (09 607) 55-2596 IS BASED. THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEMS 2 AND 5. THE PROBABILITY OF ERROR WAS APPARENT AND. THE BID AS TO ITEM 5 SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID. IT IS APPARENT THAT THE COMPANY MADE AN ERROR IN QUOTING A PRICE OF $0.0257 EACH FOR ITEM 5 AS A RESULT OF THE MISPLACEMENT OF A DECIMAL POINT IN THAT UNIT PRICE. IT WILL NOT BE THE LOWEST BID ON THAT ITEM. AN ADDITIONAL PAYMENT IN AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE AMOUNT ALREADY PAID TO THE COMPANY FOR THE FUSES DELIVERED BY IT UNDER PURCHASE ORDER NO. (09-607) 55-2596 AND THE AMOUNT OF THE NEXT LOWEST CORRECT BID ON THAT ITEM IS AUTHORIZED TO BE MADE TO THE WESTINGHOUSE ELECTRIC SUPPLY CO.

B-124155, SEP. 16, 1955

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED AUGUST 24, 1955, WITH ENCLOSURES, FROM THE OFFICE OF THE CHIEF, SETTLEMENTS DIVISION, AIR FORCE FINANCE CENTER, FURNISHING THE REPORT REQUESTED BY OUR OFFICE RELATIVE TO AN ERROR THE WESTINGHOUSE ELECTRIC SUPPLY CO., ALBANY, GEORGIA, ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. (09 607) 55-2596 IS BASED.

THE PURCHASING AND CONTRACTING OFFICE, MOODY AIR FORCE BASE, VALDOSTA, GEORGIA, BY REQUEST FOR PROPOSAL DATED FEBRUARY 18, 1955 REQUESTED BIDS FOR FURNISHING, AMONG OTHER ITEMS, 100 REN-30 BUSSMAN FUSES, ITEM 5. RESPONSE, THE WESTINGHOUSE ELECTRIC SUPPLY CO. SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHERS, THE FUSES UNDER ITEM 5 AT A PRICE OF $0.0257 EACH. THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEMS 2 AND 5.

BY LETTER DATED APRIL 6, 1955, THE WESTINGHOUSE ELECTRIC SUPPLY CO. ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID AS TO ITEM 5 AND THAT THE PRICE FOR THAT ITEM SHOULD BE $0.257 EACH. IN A LETTER DATED MAY 17, 1955, TO OUR OFFICE, THE COMPANY REQUESTED THAT THE UNIT PRICE OF ITEM 5 BE INCREASED FROM $0.0257 EACH TO $0.257 EACH. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED A PRINTED PRICE LIST OF ITS SUPPLIER WHICH SPECIFIES A LIST PRICE OF $0.40 EACH FOR REN-30 BUSS SUPER- LAG RENEWABLE FUSE--- THE TYPE OF FUSE REQUIRED UNDER ITEM 5.

THE ABSTRACT OF BIDS SHOWS THAT THE UNIT PRICES QUOTED BY THE SEVEN OTHER BIDDERS UNDER ITEM 5 RANGED FROM $0.22 EACH TO $0.30 EACH. IN VIEW OF THE SUBSTANTIAL DIFFERENCE BETWEEN THE BID OF THE WESTINGHOUSE ELECTRIC SUPPLY CO. OF $0.0257 EACH FOR ITEM 5 AND THE OTHER BIDS ON THAT ITEM, THE PROBABILITY OF ERROR WAS APPARENT AND, IN THE CIRCUMSTANCES, THE BID AS TO ITEM 5 SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, IT IS APPARENT THAT THE COMPANY MADE AN ERROR IN QUOTING A PRICE OF $0.0257 EACH FOR ITEM 5 AS A RESULT OF THE MISPLACEMENT OF A DECIMAL POINT IN THAT UNIT PRICE. HOWEVER, IF THE BID BE CORRECTED TO THE INTENDED BID PRICE OF $0.257 EACH, IT WILL NOT BE THE LOWEST BID ON THAT ITEM. IT APPEARS FROM THE RECORD THAT THE COMPANY HAS DELIVERED THE FUSES REQUIRED UNDER ITEM 5 OF THE CONTRACT AND THAT PAYMENT HAS BEEN MADE AT A UNIT PRICE OF $0.0257 EACH.

ACCORDINGLY, AN ADDITIONAL PAYMENT IN AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE AMOUNT ALREADY PAID TO THE COMPANY FOR THE FUSES DELIVERED BY IT UNDER PURCHASE ORDER NO. (09-607) 55-2596 AND THE AMOUNT OF THE NEXT LOWEST CORRECT BID ON THAT ITEM IS AUTHORIZED TO BE MADE TO THE WESTINGHOUSE ELECTRIC SUPPLY CO.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING THE ADDITIONAL PAYMENT FOR THE FUSES.