B-124231, AUG. 10, 1955

B-124231, AUG. 10, 1955

TO SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED JULY 14, 1955, WITH ENCLOSURES, FROM THE OFFICE OF THE CHIEF OF FINANCE, FURNISHING THE REPORT WE REQUESTED RELATIVE TO AN ERROR WHICH THE GRAYBAR ELECTRIC COMPANY, INC., ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 4256-DSD 55 DATED APRIL 13, 1955, IS BASED.

IT APPEARS THAT ON MARCH 28, 1955, THE DECATUR SIGNAL DEPOT REQUESTED THE GRAYBAR ELECTRIC COMPANY, INC., TO SUBMIT A QUOTATION ON 200 1/2 INCH LEAD CABLE SPACERS; THAT ON MARCH 31, 1955, THE CONTRACTING OFFICER RECEIVED A REQUISITION FOR AN ADDITIONAL 600 LEAD CABLE SPACERS OF THE SAME TYPE AND SIZE AND THAT SINCE THE GRAYBAR ELECTRIC COMPANY, INC., HAD NOT AS OF THAT DATE SUBMITTED ITS QUOTATION ON THE 200 CABLE SPACERS, IT WAS REQUESTED TO SUBMIT A QUOTATION ON 800 LEAD CABLE SPACERS. ON APRIL 11, 1955, THE CONTRACTING OFFICER RECEIVED A QUOTATION DATED APRIL 8, 1955, FROM THE GRAYBAR ELECTRIC COMPANY, INC., IN WHICH IT OFFERED TO FURNISH 800 1/2 INCH LEAD CABLE SPACERS IN ACCORDANCE WITH AT SPECIFICATION NO. 7396 AT A PRICE OF $4.12 PER ONE HUNDRED. THE CORPORATION'S BID FOR FURNISHING 800 LEAD CABLE SPACERS WAS ACCEPTED ON APRIL 13, 1955, AND PURCHASE ORDER NO. 4256-DSD-55 WAS ISSUED REQUESTING DELIVERY OF THE CABLE SPACERS AND ANOTHER ITEM.

IN A REPORT DATED JUNE 29, 1955, THE CONTRACTING OFFICER STATES THAT THE ITEM INVOLVED WAS PREVIOUSLY FURNISHED ON FEBRUARY 7, 1955, BY THE GRAYBAR ELECTRIC COMPANY, INC., AT A PRICE OF $8.92 PER ONE HUNDRED; THAT THE GRAYBAR ELECTRIC COMPANY, INC., WAS THE ONLY FIRM CONTACTED FOR FURNISHING THE LEAD CABLE SPACERS FOR THE REASON THAT THE AMOUNT OF THE CONTEMPLATED PURCHASE WAS LESS THAN $100; THAT THE CORPORATION'S QUOTATION OF APRIL 1, 1955, IN WHICH IT OFFERED TO FURNISH 200 1/2 INCH CABLE SPACERS IN ACCORDANCE WITH AT SPECIFICATION NO. 7092 AT A PRICE OF $9.81 PER ONE HUNDRED, WAS NOT RECEIVED UNTIL AFTER THE PURCHASE ORDER INVOLVED WAS ISSUED. ALSO, IT IS STATED THAT WHEN THE CORPORATION'S QUOTATION ON THE 800 CABLE SPACERS WAS RECEIVED IT WAS NOTED THAT THE PRICE QUOTED WAS CONSIDERABLY BELOW THAT QUOTED BY IT ON FEBRUARY 7, 1955, AND THAT THE CORPORATION WAS OFFERING A LEAD CABLE SPACER IN ACCORDANCE WITH AT SPECIFICATION NO. 7396 RATHER THAN AT SPECIFICATION NO. 7092, BUT THAT IT WAS BELIEVED THAT THE NEW PART OFFERED WAS PRICED MORE COMPETITIVELY THAN THE PART PREVIOUSLY FURNISHED.

BY LETTER DATED APRIL 15, 1955, THE CORPORATION ADVISED THATA DISCREPANCY EXISTED BETWEEN THE FIRST ITEM OF THE PURCHASE ORDER AND THE FIRST ITEM OF ITS QUOTATION OF APRIL 8, 1955, IN THAT THE PURCHASE ORDER CALLED FOR DELIVERY OF A LEAD CABLE SPACER WHICH IS COVERED BY AT SPECIFICATION NO. 7092, WHEREAS ITS QUOTATION IS BASED ON DELIVERY OF A PLASTIC CABLE SPACER COVERED BY AT SPECIFICATION NO. 7396. THE CORPORATION INVITED ATTENTION TO ITS QUOTATION OF APRIL 1, 1955, IN WHICH IT OFFERED TO FURNISH 200 1/2 INCH LEAD CABLE SPACERS COVERED BY AT SPECIFICATION NO. 7092 AT A PRICE OF $9.81 PER ONE HUNDRED. IN A LETTER DATED APRIL 19, 1955, TO OUR OFFICE, THE CORPORATION REQUESTED THAT THE UNIT PRICE OF THE LEAD CABLE SPACERS BE INCREASED FROM $4.12 PER ONE HUNDRED TO $9.81 PER ONE HUNDRED--- THE PRICE QUOTED BY IT IN ITS QUOTATION OF APRIL 1, 1955. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED ITS PRINTED PRICE LIST WHICH SPECIFIES A PRICE OF $10.95 PER ONE HUNDRED FOR A LESS THAN STANDARD PACKAGE OF 400 FOR 1/2 INCH LEAD CABLE SPACERS IN ACCORDANCE WITH AT SPECIFICATION NO. 7092. THE PRICE FOR A STANDARD PACKAGE OF 400 IS SHOWN AS BEING $9.72 PER ONE HUNDRED. THE PRICE LIST ALSO SPECIFIES A PRICE OF $4.55 PER ONE HUNDRED IN STANDARD CARTONS OF 50, FOR 1/2 INCH "B" PLASTIC CABLE SPACERS IN ACCORDANCE WITH AT SPECIFICATION NO. 7396.

IN ITS QUOTATION OF APRIL 8, 1955, THE CORPORATION OFFERED TO FURNISH AT A PRICE OF $4.12 PER ONE HUNDRED, 800 1/2 INCH LEAD CABLE SPACERS IN ACCORDANCE WITH AT SPECIFICATION NO. 7396. THE RECORD, HOWEVER, SHOWS THAT THIS SPECIFICATION COVERS PLASTIC CABLE SPACERS AND NOT LEAD CABLE SPACERS AS REQUIRED BY THE INVITATION. WHILE THE CONTRACTING OFFICER STATES THAT IT WAS BELIEVED THAT THE PART COVERED BY THAT SPECIFICATION WAS A NEW PART PRICED MORE COMPETITIVELY THAN THE PART COVERED BY AT SPECIFICATION NO. 7092, WHICH PART WAS PREVIOUSLY FURNISHED BY THE CORPORATION AT A PRICE OF $8.92 PER ONE HUNDRED ON FEBRUARY 7, 1955--- APPROXIMATELY TWO MONTHS BEFORE THE DATE ON WHICH THE SUBJECT INVITATION WAS ISSUED--- IN VIEW OF THE SUBSTANTIAL DIFFERENCE BETWEEN THE CORPORATION'S PRICE OF $4.12 PER ONE HUNDRED QUOTED IN ITS QUOTATION OF APRIL 8, 1955, AND THE PRICE AT WHICH IT HAD PREVIOUSLY FURNISHED THE REQUIRED ITEM, IT IS BELIEVED THAT THE CONTRACTING OFFICER SHOULD HAVE ASCERTAINED THE TYPE OF ITEM THAT WAS COVERED BY AT SPECIFICATION NO. 7396 BEFORE MAKING AN AWARD TO THE CORPORATION. IN THE INSTANT CASE, IF THE CONTRACTING OFFICER HAD TAKEN SUCH ACTION, THE PROBABILITY OF ERROR WOULD HAVE BEEN APPARENT--- THE PRICE QUOTED FOR THE REQUIRED ITEM BEING APPROXIMATELY ONE-HALF OF THE AMOUNT PREVIOUSLY PAID THEREFOR.

THE RECORD INDICATES THAT THE CORPORATION HAS DELIVERED THE REQUIRED LEAD CABLE SPACERS AND THAT IT HAS BEEN PAID FOR THEM AT ITS ORIGINAL BID PRICE. ACCORDINGLY, IN THE CIRCUMSTANCES, OUR OFFICE WILL RAISE NO OBJECTION TO AN ADDITIONAL PAYMENT OF $45.52--- THE DIFFERENCE BETWEEN THE CORPORATION'S ORIGINAL TOTAL BID PRICE AND INTENDED TOTAL BID PRICE FOR THE LEAD CABLE SPACERS--- BEING MADE TO THE GRAYBAR ELECTRIC COMPANY, INC., FOR THE LEAD CABLE SPACERS DELIVERED BY IT UNDER PURCHASE ORDER NO. 4256-DSD-55.

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