B-124919, AUG. 5, 1955

B-124919: Aug 5, 1955

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TO SECRETARY OF THE ARMY: REFERENCE IS MADE TO YOUR LETTER OF JULY 29. ON WHICH THE CONTRACT IS BASED. THERE IS NO DOUBT THAT THE COMPANY'S UNIT PRICE BID ON ITEM NO. 40 WAS INTENDED AS ITS BID ON ITEM NO. 41 AS ALLEGED. ERROR WAS APPARENT ON THE FACE OF THE BID. THE CONTRACTING OFFICER HAD CONSTRUCTIVE NOTICE OF THE ERROR AND THE COMPANY SHOULD HAVE BEEN AFFORDED AN OPPORTUNITY. IT APPEARING THAT THE MATERIAL INVOLVED STILL IS IN THE GOVERNMENT'S POSSESSION. ONE OF THE DUPLICATE SETS OF DOCUMENTS TRANSMITTED WITH YOUR LETTER IS RETURNED.

B-124919, AUG. 5, 1955

TO SECRETARY OF THE ARMY:

REFERENCE IS MADE TO YOUR LETTER OF JULY 29, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER A CONTRACT DATED JUNE 6, 1955, WITH EFROS TRADING CO., INC., MAY BE RESCINDED AS TO ITEM NO. 40 IN VIEW OF THE ERROR WHICH THE COMPANY ALLEGES IT MADE ON THAT ITEM OF ITS BID DATED MAY 31, 1955, ON WHICH THE CONTRACT IS BASED.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT THE COMPANY'S UNIT PRICE BID ON ITEM NO. 40 WAS INTENDED AS ITS BID ON ITEM NO. 41 AS ALLEGED. ERROR WAS APPARENT ON THE FACE OF THE BID, SINCE THE UNIT BID PRICE OF $1.252 MULTIPLIED BY THE QUANTITY (298) INVOLVED DOES NOT EQUAL THE AMOUNT EXTENDED TO THE TOTAL BID COLUMN FOR THE ITEM. THE CONTRACTING OFFICER HAD CONSTRUCTIVE NOTICE OF THE ERROR AND THE COMPANY SHOULD HAVE BEEN AFFORDED AN OPPORTUNITY, PRIOR TO AWARD, TO VERIFY ITS BID ON ITEM NO. 40.

ACCORDINGLY, IT APPEARING THAT THE MATERIAL INVOLVED STILL IS IN THE GOVERNMENT'S POSSESSION, THE AWARD, AS TO ITEM NO. 40, SHOULD BE CANCELLED.

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

ONE OF THE DUPLICATE SETS OF DOCUMENTS TRANSMITTED WITH YOUR LETTER IS RETURNED, THE OTHER BEING RETAINED FOR OUR FILES.