B-125804, NOV. 4, 1955

B-125804: Nov 4, 1955

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TO THE HONORABLE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER OF OCTOBER 13. WAS AWARDED. A DECISION IS REQUESTED AS TO WHETHER THE CONTRACTOR'S REQUEST FOR RESCISSION OF THE CONTRACT MAY BE GRANTED. THE BID OF THE COMPANY WAS DETERMINED TO BE THE HIGHEST BID RECEIVED AND AWARD WAS MADE ON JULY 25. THE BID OF THE COMPANY IN THE AMOUNT OF $176.50 FOR ITEM 31 IS CLEARLY OUT OF LINE WITH THE OTHER BIDS RECEIVED FOR THAT ITEM AND IT WOULD APPEAR THAT BY REASON OF SUCH WIDE DISPARITY A VERIFICATION OF THE COMPANY'S BID SHOULD HAVE BEEN MADE PRIOR TO AWARD. IT IS ALSO REPORTED THAT THE COMPANY'S STATEMENT IN ITS LETTER OF JULY 27. TO THE EFFECT THAT THEY NEVER BID ON ANYTHING THAT IS NOT IN THEIR LINE OF BUSINESS.

B-125804, NOV. 4, 1955

TO THE HONORABLE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER OF OCTOBER 13, 1955, WITH ENCLOSURES, FROM THE DEPUTY ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), REQUESTING A DECISION RELATIVE TO AN ERROR THE S AND B SEWING MACHINE COMPANY, CHICAGO, ILLINOIS, ALLEGES IT MADE IN ITS BID ON WHICH UNNUMBERED CONTRACT DATED JULY 25, 1955, WAS AWARDED. A DECISION IS REQUESTED AS TO WHETHER THE CONTRACTOR'S REQUEST FOR RESCISSION OF THE CONTRACT MAY BE GRANTED.

BY INVITATION NO. 12-036-S-56-18 DATED JUNE 28, 1955, THE

PROPERTY DISPOSAL OFFICER OF THE JEFFERSONVILLE QUARTERMASTER DEPOT, JEFFERSONVILLE, INDIANA, REQUESTED BIDS FOR THE PURCHASE FROM THE GOVERNMENT OF VARIOUS ITEMS OF SURPLUS GOVERNMENT PROPERTY UNDER ITEMS 1 TO 56, INCLUSIVE. IN RESPONSE, THE S AND B SEWING MACHINE COMPANY SUBMITTED A BID DATED JULY 19, 1955, OFFERING TO PURCHASE ITEM 31 AT A PRICE FOR THE LOT OF $176.50. THE BID OF THE COMPANY WAS DETERMINED TO BE THE HIGHEST BID RECEIVED AND AWARD WAS MADE ON JULY 25, 1955.

ON JULY 26, 1955, MR. FRANK ALTER, REPRESENTING THE COMPANY, CALLED THE PROPERTY DISPOSAL OFFICER AND ADVISED THAT UPON RECEIPT OF THE NOTICE OF AWARD ON ITEM 31 THERE APPEARED TO BE A MISTAKE IN THAT HE HAD BID, OR AT LEAST INTENDED TO BID ON ITEM 30. THEREAFTER, BY LETTER OF JULY 27, 1955, THE COMPANY CONFIRMED THE PREVIOUS TELEPHONE COMMUNICATION TO THE EFFECT THAT THEY HAD INTENDED BIDDING ON ITEM 30, SEWING MACHINE PARTS, AND NOT ON ITEM 31, AND ENCLOSED ITS WORK COPY OF THE INVITATION FOR BID TO SUBSTANTIATE THIS STATEMENT.

THE PROPERTY DISPOSAL OFFICER STATES THAT, IN HIS OPINION, THE BID OF THE COMPANY IN THE AMOUNT OF $176.50 FOR ITEM 31 IS CLEARLY OUT OF LINE WITH THE OTHER BIDS RECEIVED FOR THAT ITEM AND IT WOULD APPEAR THAT BY REASON OF SUCH WIDE DISPARITY A VERIFICATION OF THE COMPANY'S BID SHOULD HAVE BEEN MADE PRIOR TO AWARD. HE FURTHER STATES THAT THE WORK COPY OF THE INVITATION FOR BID USED BY THE COMPANY IN PREPARATION OF ITS BID SUBSTANTIATES THE FACT THAT THE COMPANY INTENDED BIDDING ON ITEM 30 RATHER THAN ITEM 31. IT IS ALSO REPORTED THAT THE COMPANY'S STATEMENT IN ITS LETTER OF JULY 27, 1955, TO THE EFFECT THAT THEY NEVER BID ON ANYTHING THAT IS NOT IN THEIR LINE OF BUSINESS, NAMELY, SEWING MACHINES, IS CORRECT.

CONSIDERING THE FACT THAT THE COMPANY'S WORK COPY OF THE INVITATION SUBSTANTIATES THAT IT WAS BIDDING ON ITEM 30, AS WELL AS THE FACT THAT THE RECORD ESTABLISHES THE COMPANY HAS NEVER BID ON OTHER THAN SEWING MACHINE PARTS, IT WOULD APPEAR THAT THE COMPANY SHOULD BE RELEASED FROM THE CONTRACT.

ACCORDINGLY, UNNUMBERED CONTRACT DATED JULY 25, 1955, MAY BE CANCELED WITHOUT LIABILITY TO THE COMPANY.