B-124323, JUN. 24, 1955

B-124323, JUN. 24, 1955

TO MR. W. H. FISCHER, CONTRACTING OFFICER, FOREST SERVICE, SOUTHERN REGION:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 14, 1955 (FILE REFERENCE A COLLECTION CONTRACTS), WITH ENCLOSURES, RELATIVE TO AN ERROR ALLEGED BY E. W. MANNING TO HAVE BEEN MADE IN HIS BID DATED MAY 26, 1955, SUBMITTED IN RESPONSE TO A NOTICE OF SALE OF APPROXIMATELY 10,500 TONS OF DEAD PINE TARWOOD STUMPS BY THE FOREST SERVICE.

THE INVITATION APPRISED THE BIDDERS THAT, IN ADDITION TO THE PRICE BID FOR STUMPAGE, A DEPOSIT OF $1.85 PER TON WAS REQUIRED FOR SALE AREA BETTERMENT WORK ON ALL TARWOOD REMOVED, DESIGNATED AS A "PLANTING, STAND IMPROVEMENT" DEPOSIT. MR. MANNING SUBMITTED A BID FOR STUMPAGE OF $1.36 PER TON AND ALSO SHOWED HIS TOTAL OFFER PER TON, INCLUDING THE REQUIRED DEPOSIT OF $1.85 PER TON, AS $2.21.

YOU STATE THAT MR. MANNING WAS PRESENT WHEN THE BIDS WERE READ ON OPENING DAY AND THAT HE IMMEDIATELY ADVISED THAT THE PRICE BID OF $1.36 PER TON WAS A TYPOGRAPHICAL ERROR AND THAT HIS TOTAL BID PRICE PER TON OF $2.21, THE AMOUNT SHOWN IN THE TOTAL COLUMN OF THE BID UNDER THE CAPTION "SUM OF COOPERATIVE DEPOSITS PLUS PRICE BID," WAS CORRECT. BY LETTER DATED JUNE 10, 1955, THE BIDDER CONFIRMED HIS ALLEGATION OF ERROR AND ADVISED THAT HIS INTENDED BID FOR STUMPAGE WAS $0.36 IN LIEU OF $1.36 PER TON AND THAT HIS INTENDED TOTAL BID PRICE PER TON, INCLUDING THE REQUIRED DEPOSIT OF $1.85 PER TON, WAS $2.21 PER TON, AS CORRECTLY SHOWN IN THE BID.

ERROR IS APPARENT ON THE FACE OF THE BID, SINCE THE SUM OF THE DEPOSIT ($1.85) PLUS THE PRICE BID OF $1.36 IS $3.21 AND NOT $2.21, AS SPECIFIED IN THE BID. THE ABSTRACT OF BIDS SHOWS THAT THE TWO OTHER UNIT PRICE BIDS RECEIVED WERE $0.25 AND $0.15, AND ALSO SHOWS, FOR THE PURPOSE OF COMPARISON, THAT THE THREE BIDS RECEIVED, ON THE BASIS OF THE ESTIMATED QUANTITY OF 10,500 TONS INVOLVED IN THE SALE, AMOUNT TO $14,280 (MR. MANNING-S), $2,625 AND $1,575, RESPECTIVELY, EXCLUSIVE OF THE REQUIRED DEPOSIT OF $1.85 PER TON. THUS, MR. MANNING'S BID IS ENTIRELY OUT OF LINE WITH THE OTHER BIDS. MOREOVER, YOU EXPRESS THE VIEW THAT THE BIDDER INTENDED TO BID $0.36 PER TON AND STATE THAT "THE APPRAISED PRICE OF THE STUMPS BY THE FOREST SERVICE PRIOR TO ADVERTISING BIDS WAS $0.15 PER TON.' ALSO, YOU STATE THAT MR. MANNING'S BID IS CONSIDERABLY HIGHER THAN THE BIDS RECEIVED ON PRIOR SALES OF STUMPAGE AND THAT "IT IS NOT REASONABLE THAT BIDDER WOULD INTENTIONALLY BID $1.36 PER TON IN ADDITION TO THE REQUIRED PAYMENT OF $1.85 PER TON, AS IT IS A VIRTUAL CERTAINTY THAT BY SO DOING HE COULD NOT MAKE EXPENSES ON THE VENTURE.'

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS TO BE NO DOUBT THAT MR. MANNING MADE A BONA FIDE ERROR IN HIS BID AND THAT HIS INTENDED BID PER TON WAS $0.36, INSTEAD OF $1.36, AS ALLEGED. ALSO, IT APPEARS THAT IF HIS BID IS CORRECTED, IT STILL WILL BE THE HIGHEST BID RECEIVED.

ACCORDINGLY, SINCE THE ERROR WAS PROMPTLY ALLEGED AND EXPLAINED SATISFACTORILY BY THE BIDDER PRIOR TO AWARD, THE BID OF E. W. MANNING MAY BE CORRECTED SO AS TO PROVIDE A UNIT PRICE FOR THE STUMPAGE OF $0.36 PER TON, OR A TOTAL BID--- INCLUDING THE REQUIRED STAND IMPROVEMENT DEPOSIT OF $1.85 PER TON--- OF $2.21 PER TON AND THE BID, AS CORRECTED, MAY BE CONSIDERED ALONG WITH THE OTHER BIDS IN MAKING THE AWARD.

IN THE EVENT OF AN AWARD TO E. W. MANNING, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.