B-124339, JUN. 30, 1955

B-124339, JUN. 30, 1955

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO LETTER DATED JUNE 15, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE APPROPRIATE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR WHICH KESLING MODERN STRUCTURES, NC., ALLEGES WAS MADE IN ITS BID ON WHICH CONTRACT NO. N244S-47910 WAS AWARDED.

THE RECORD SHOWS THAT THREE OTHER BIDS OF $0.015, $0.01422, AND $0.001 EACH WERE RECEIVED FOR THE 2,297 PLUG CONNECTOR TIPS UNDER ITEM NO. 39 OF THE INVITATION. HENCE, NOTWITHSTANDING THAT A WIDE RANGE OF BIDS GENERALLY MAY BE EXPECTED IN THE SALE OF GOVERNMENT SURPLUS PROPERTY, THE BID OF KESLING MODERN STRUCTURES, INC., OF $0.25 EACH FOR ITEM NO. 39--- ALLEGED INTENDED BID OF $0.0025 EACH--- IS OUT OF ALL PROPORTION TO THE OTHER BIDS RECEIVED FOR THIS ITEM. IN VIEW THEREOF AND SINCE THE SUM OF $5.74, SHOWN IN THE BIDDER'S TOTAL AMOUNT COLUMN, IS AN INCORRECT EXTENSION OF THE UNIT PRICE BID, VERIFICATION OF THE BID ON THIS ITEM SHOULD HAVE BEEN REQUESTED PRIOR TO MAKING THE AWARD.

ACCORDINGLY, SINCE THE ERROR WAS APPARENT ON THE FACE OF THE BID AND THE RECORD ESTABLISHES WITH REASONABLE CERTAINTY THAT THE ERROR WAS IN THE UNIT PRICE RATHER THAN IN THE EXTENSION THEREOF, CANCELLATION OF ITEM NO. 39 FROM CONTRACT NO. N244S-47910 IS AUTHORIZED WITH A CORRESPONDING ADJUSTMENT IN THE CONTRACT PRICE.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.

THE PAPERS, WITH THE EXCEPTION OF THE STATEMENT OF FACTS BY THE DISPOSAL OFFICER, ARE RETURNED ..END :