B-125685, OCT. 14, 1955

B-125685: Oct 14, 1955

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TO THE HONORABLE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 30. A DECISION IS REQUESTED AS TO THE APPROPRIATE ACTION TO BE TAKEN BY YOUR DEPARTMENT IN THE MATTER. THE YORK PENN MACHINERY COMPANY SUBMITTED BIDS FOR SEVERAL OF THE ITEMS OF PROPERTY OFFERED FOR SALE AND THE SAME WERE ACCEPTED AS TO ITEMS 1. ONLY ITEM 262 IS BEING CONSIDERED HEREIN. IT BEING STATED BY THE CONTRACTOR THAT THROUGH CARELESSNESS A BID MEANT TO BE PLACED ON ITEM 261 WAS IN REALITY PLACED ON ITEM 262. NAVAL SUPPLY DEPOT IS OF THE OPINION THAT THE CONTRACTOR IS ENTITLED TO RELIEF FOR THE FOLLOWING REASONS: (A) THE BID PRICE ON ITEM 262 SUBMITTED BY THE CLAIMANT IS FAR IN EXCESS OF THOSE SUBMITTED BY ANY OF THE OTHER BIDDERS ON THE SAME ITEM.

B-125685, OCT. 14, 1955

TO THE HONORABLE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 30, 1955, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY, RELATING TO A MISTAKE IN BID ALLEGED BY THE YORK PENN MACHINERY COMPANY, YORK, PENNSYLVANIA, UNDER CONTRACT NO. N407S- 1577 (SALE INVITATION NO. B-4-56), ISSUED BY THE U.S. NAVAL SUPPLY DEPOT, MECHANICSBURG, PENNSYLVANIA, AS SET FORTH IN THE COMMANDING OFFICER'S LETTER OF AUGUST 29, 1955. IN VIEW OF THE FACTS SET FORTH IN THE ENCLOSURES TO THE LETTER OF SEPTEMBER 30, 1955, A DECISION IS REQUESTED AS TO THE APPROPRIATE ACTION TO BE TAKEN BY YOUR DEPARTMENT IN THE MATTER.

BY INVITATION NO. B-4-56, DATED JUNE 27, 1955, THE U.S. NAVAL SUPPLY DEPOT, MECHANICSBURG, PENNSYLVANIA, OFFERED FOR SALE CERTAIN SURPLUS PROPERTY, THE BIDS TO BE OPENED ON JULY 27, 1955. IN RESPONSE THERETO, THE YORK PENN MACHINERY COMPANY SUBMITTED BIDS FOR SEVERAL OF THE ITEMS OF PROPERTY OFFERED FOR SALE AND THE SAME WERE ACCEPTED AS TO ITEMS 1, 2, 25, 31, 32, 35, 36, 37, 42, 44, 46, 70, 72, 150 AND 262, FOR A TOTAL PRICE OF $34,879.50. ONLY ITEM 262 IS BEING CONSIDERED HEREIN, IT BEING STATED BY THE CONTRACTOR THAT THROUGH CARELESSNESS A BID MEANT TO BE PLACED ON ITEM 261 WAS IN REALITY PLACED ON ITEM 262.

ITEM 262 COVERED ONE LAYOUT PLATE, SIZE 120 INCHES BY 120 INCHES BY 10 1/2 INCHES HIGH, WITH 7 METAL LEGS 24 INCHES HIGH, ACQUISITION COST $1,200. ON THIS ITEM THE CONTRACTOR SUBMITTED A BID OF $2,010. THE COMMANDING OFFICER OF THE U.S. NAVAL SUPPLY DEPOT IS OF THE OPINION THAT THE CONTRACTOR IS ENTITLED TO RELIEF FOR THE FOLLOWING REASONS:

(A) THE BID PRICE ON ITEM 262 SUBMITTED BY THE CLAIMANT IS FAR IN EXCESS OF THOSE SUBMITTED BY ANY OF THE OTHER BIDDERS ON THE SAME ITEM. THE SECOND HIGHEST BID IS ACTUALLY LESS THAN 25 PERCENT OF THE PRICE OFFERED BY THE CLAIMANT.

(B) THE BID SUBMITTED BY THE CLAIMANT AS TO ITEM 262 IS ALMOST 70 PERCENT HIGHER THAN THE ORIGINAL ACQUISITION COST OF THE PROPERTY WHEREAS THE NEXT HIGHEST BID FOR THE SAME ITEM IS LESS THAN 40 PERCENT OF THE ACQUISITION COST.

THE EVIDENCE PRESENTED APPEARS TO ESTABLISH THE EXISTENCE OF THE MISTAKE ALLEGED. ACCORDINGLY, AND IN VIEW OF THE RECOMMENDATION OF THE COMMANDING OFFICER, THE AWARD AS TO ITEM 262 SHOULD BE CANCELED, IT APPEARING THAT THE DISCREPANCY BETWEEN THE AMOUNT BID AND THE ACQUISITION COST WAS SO GREAT THAT VERIFICATION SHOULD HAVE BEEN REQUESTED BEFORE AWARD.

THE PAPERS TRANSMITTED WITH THE LETTER OF SEPTEMBER 30, 1955, WITH THE EXCEPTION OF THE COMMANDING OFFICER'S LETTER OF AUGUST 29, 1955, ARE RETURNED HEREWITH.