B-124240, JUN. 17, 1956

B-124240: Jun 17, 1956

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO YOUR LETTER OF JUNE 7. THE RECORD SHOWS THAT THE CONTRACTING OFFICER CONSIDERED THE CORPORATION'S BID WAS OUT OF LINE WITH THE 27 OTHER BIDS RECEIVED. THE BIDDER ADVISED THAT IT HAD MADE AN ERROR IN COMPUTING ITS BID PRICE IN THAT THE COST OF ONE OF THE COMPONENT PARTS OF THE SPECIFIED THREAD PROTECTOR ASSEMBLY WAS INADVERTENTLY OMITTED. THE CORPORATION'S UNIT PRICE WOULD HAVE BEEN $0.42 HIGHER. THE CONTRACTING OFFICER STATES THAT IT IS HIS BELIEF THAT THE CORPORATION MADE AN ERROR IN SUBMITTING ITS BID AND THAT ITS INTENDED BID OF $1.40 PER ASSEMBLY IS ESTABLISHED BY EVIDENCE THAT IS CLEAR AND CONVINCING. THERE IS NO DOUBT THAT THE CORPORATION MADE A BONA FIDE ERROR IN ITS BID AND THAT ITS INTENDED BID WAS $1.40 PER ASSEMBLY.

B-124240, JUN. 17, 1956

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 7, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER A BID, DATED APRIL 22, 1955, SUBMITTED BY BEE MOLD AND DIE, INC., IN RESPONSE TO INVITATION NO. IFB 195-114-55, MAY BE CORRECTED, IN VIEW OF THE BIDDER'S ALLEGATION OF ERROR.

THE RECORD SHOWS THAT THE CONTRACTING OFFICER CONSIDERED THE CORPORATION'S BID WAS OUT OF LINE WITH THE 27 OTHER BIDS RECEIVED, THE SIX LOWEST OF WHICH RANGED FROM $1.67 TO $2.29 PER ASSEMBLY, AND REQUESTED THE CORPORATION TO VERIFY ITS UNIT PRICE BID OF $0.98, INCLUDING PACKAGING. BY LETTER OF MAY 9, 1955, CONFIRMING A PRIOR TELEPHONE CONVERSATION, THE BIDDER ADVISED THAT IT HAD MADE AN ERROR IN COMPUTING ITS BID PRICE IN THAT THE COST OF ONE OF THE COMPONENT PARTS OF THE SPECIFIED THREAD PROTECTOR ASSEMBLY WAS INADVERTENTLY OMITTED. A PHOTOSTATIC COPY OF THE BIDDER'S ORIGINAL WORKSHEETS CLEARLY SHOWS THAT, ALTHOUGH THE BIDDER HAD PREPARED A BREAKDOWN OF THE BASIC COST OF EACH OF THE ASSEMBLY'S COMPONENT PARTS INCLUDING PART NO. 1123452, ON SEPARATE SHEETS, IN ITS RECAPITULATION OF THE AGGREGATE COST OF THE ENTIRE ASSEMBLY, IT FAILED TO INCLUDE ANY AMOUNT TO COVER PART NO. 1123452. ALSO, THE WORKSHEETS CLEARLY INDICATE THAT, IF THE ERROR HAD NOT BEEN MADE AS ALLEGED, THE CORPORATION'S UNIT PRICE WOULD HAVE BEEN $0.42 HIGHER, OR $1.40 EACH, AS THE BIDDER CONTENDS. THE CONTRACTING OFFICER STATES THAT IT IS HIS BELIEF THAT THE CORPORATION MADE AN ERROR IN SUBMITTING ITS BID AND THAT ITS INTENDED BID OF $1.40 PER ASSEMBLY IS ESTABLISHED BY EVIDENCE THAT IS CLEAR AND CONVINCING.

ON THE BASIS OF THE FACTS OF RECORD, THERE IS NO DOUBT THAT THE CORPORATION MADE A BONA FIDE ERROR IN ITS BID AND THAT ITS INTENDED BID WAS $1.40 PER ASSEMBLY, AS ALLEGED. ACCORDINGLY, SINCE THE CONTRACTING OFFICER BELIEVED THAT THE BID WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED SATISFACTORILY BY THE CORPORATION PRIOR TO AWARD, THE BID OF BEE MOLD AND DIE, INC., MAY BE CORRECTED SO AS TO PROVIDE A UNIT PRICE OF $1.40, IN LIEU OF $0.98, AND, AS CORRECTED, THE BID MAY BE CONSIDERED ALONG WITH THE OTHER BIDS IN MAKING THE AWARD.

IN THE EVENT OF AN AWARD TO BEE MOLD AND DIE, INC., A REFERENCE SHOULD BE MADE TO THIS DECISION ON THE CONTRACT.

THE PAPERS, WITH THE EXCEPTION OF THE PHOTOSTATIC COPIES OF THE BIDDER'S WORKSHEETS, A COPY OF THE BREAKDOWN OF THE INTENDED BID PRICE AND A COPY OF THE CONTRACTING OFFICER'S UNDATED STATEMENT OF FACTS AND RECOMMENDATIONS, ARE RETURNED.