B-125331, SEP. 9, 1955

B-125331: Sep 9, 1955

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO LETTER OF AUGUST 24. IS BASED. THERE IS NO DOUBT THAT THE CONTRACTOR MADE AN ERROR IN ITS BID AS ALLEGED AND THAT IF NOT FOR SUCH ERROR. ITS BID FOR THE ENTIRE QUANTITY OF 60 TABLES WOULD HAVE BEEN $168.85 EACH. IS OBVIOUSLY INCONSISTENT WITH THE FEDERAL PACKING SPECIFICATIONS IN THE APPLICABLE PURCHASE DESCRIPTION. TO WHICH THE PROSPECTIVE BIDDER'S ATTENTION WAS INVITED. WHEREIN ONE UNIFORM "OVERPACKING" WAS REQUIRED SUITABLE FOR DOMESTIC OR OVERSEAS DELIVERY. THE CONTRACTING OFFICER ALSO STATES THAT SINCE A UNIT PRICE OF $166 WAS PAID FOR 86 IDENTICAL UNITS IN FEBRUARY 1955. IT IS HIS OPINION THAT $168.85 EACH. IS A REASONABLE UNIT PRICE FOR THE SMALLER QUANTITY INVOLVED IN THE INSTANT PROCUREMENT.

B-125331, SEP. 9, 1955

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER OF AUGUST 24, 1955, FROM THE ASSISTANT SECRETARY (LOGISTICS AND R AND D), RELATIVE TO AN ALLEGED ERROR IN A BID DATED JUNE 8, 1955, SUBMITTED BY THE SHAMPAINE COMPANY, ST. LOUIS, MISSOURI, ON WHICH CONTRACT NO. MPA-30-287-MD-26050, OIN-53650, IS BASED. YOU REQUEST A DECISION AS TO WHETHER THE CONTRACT PRICE MAY BE CHANGED TO PROVIDE FOR A PRICE OF $168.85, F.O.B. ORIGIN, FOR EACH OF THE 60 TABLES CALLED FOR UNDER ITEM NO. 3, INSTEAD OF $162.50 EACH FOR 40 TABLES (DOMESTIC PACK) AND $168.85, FOR 20 TABLES (OVERSEAS PACK) AS QUOTED BY THE COMPANY IN ITS BID, SUBMITTED ON AN "ALL OR NONE" BASIS.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, INCLUDING THE DISCLOSURES IN THE CONTRACTING OFFICER'S LETTER OF JULY 5, 1955, THE CONTRACTOR'S EXPLANATORY LETTER OF JUNE 21, 1955, AND ITS ORIGINAL WORKSHEETS FORWARDED THEREWITH, THERE IS NO DOUBT THAT THE CONTRACTOR MADE AN ERROR IN ITS BID AS ALLEGED AND THAT IF NOT FOR SUCH ERROR, ITS BID FOR THE ENTIRE QUANTITY OF 60 TABLES WOULD HAVE BEEN $168.85 EACH.

THE GOVERNMENT'S ADVERTISEMENT FOR TWO SEPARATE BID PRICES, ONE ON 40 TABLES, DOMESTIC PACK, AND THE OTHER ON 20 TABLES, OVERSEAS PACK, IS OBVIOUSLY INCONSISTENT WITH THE FEDERAL PACKING SPECIFICATIONS IN THE APPLICABLE PURCHASE DESCRIPTION, TO WHICH THE PROSPECTIVE BIDDER'S ATTENTION WAS INVITED, WHEREIN ONE UNIFORM "OVERPACKING" WAS REQUIRED SUITABLE FOR DOMESTIC OR OVERSEAS DELIVERY. IN HIS STATEMENT THE CONTRACTING OFFICER REPORTS THAT, BY REASON OF THIS AMBIGUITY IN THE INVITATION, THE ONLY OTHER BIDDER ALSO MADE THE SAME ERROR.

THE CONTRACTING OFFICER ALSO STATES THAT SINCE A UNIT PRICE OF $166 WAS PAID FOR 86 IDENTICAL UNITS IN FEBRUARY 1955, IT IS HIS OPINION THAT $168.85 EACH, AS QUOTED BY THE CONTRACTOR FOR THE TABLES PACKED AS REQUIRED, IS A REASONABLE UNIT PRICE FOR THE SMALLER QUANTITY INVOLVED IN THE INSTANT PROCUREMENT. IN VIEW OF ALL THE FACTS, AND SINCE, DUE TO THE URGENT NEED FOR THE TABLES, THE AWARD WAS MADE SUBJECT TO THE DECISION OF THIS OFFICE IN THE MATTER, PAYMENT IS AUTHORIZED TO BE MADE TO THE SHAMPAINE COMPANY, UPON COMPLETION OF THE DELIVERY OF THE 60 TABLES IN ACCORDANCE WITH THE CONTRACT SPECIFICATIONS, AT A PRICE OF $168.85 PER TABLE, AS RECOMMENDED BY THE CONTRACTING OFFICER, IT BEING STATED IN YOUR LETTER THAT SUCH PRICE IS LESS THAN THE OTHER BID RECEIVED.

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

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT DATED JULY 5, 1955, AND A COPY OF INVITATION NO. MPA-30-287 MD-55-797, DATED JUNE 1, 1955, WITH ATTACHMENTS, ARE RETURNED.