B-126216, FEB. 3, 1956

B-126216: Feb 3, 1956

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TO THE HONORABLE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED JANUARY 23. THAT THE CONTRACT PRICE OF FIVE FORM AD-101635 COUNTERS TO BE FURNISHED BY IT UNDER PURCHASE ORDER NO. 4959-55-SCD BE INCREASED FROM $8.45 EACH TO $30.30 EACH BECAUSE OF A MISUNDERSTANDING EXISTING BETWEEN IT AND THE TOBYHANNA SIGNAL DEPOT AS TO THE ITEM COVERED BY ITS VERBAL BID ON WHICH THE SUBJECT ORDER IS BASED. ON THE BASIS OF SUCH QUOTATION PURCHASE ORDER NO. 4969-55- SCD WAS PROCESSED ON JUNE 27. POINTED OUT THAT THE PRICE OF $8.45 EACH ORIGINALLY QUOTED BY IT COVERED ITS STANDARD MODEL COUNTER WHICH DID NOT HAVE THE FIVE SPECIAL FEATURES FOUND IN THE REQUIRED COUNTER. THE CONTRACTING OFFICER ADVISED THE CORPORATION THAT SHE WAS WITHOUT AUTHORITY TO CORRECT THE PRICE OF THE COUNTERS AND SUGGESTED THAT THE CORPORATION SUBMIT A CLAIM FOR ADDITIONAL COMPENSATION TO THE CLAIMS DIVISION OF THE GENERAL ACCOUNTING OFFICE.

B-126216, FEB. 3, 1956

TO THE HONORABLE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED JANUARY 23, 1956, WITH ENCLOSURES, FROM THE OFFICE OF THE CHIEF OF FINANCE, FURNISHING THE REPORT REQUESTED BY OUR OFFICE RELATIVE TO THE REQUEST OF VEEDER-ROOT INCORPORATED, HARTFORD, CONNECTICUT, THAT THE CONTRACT PRICE OF FIVE FORM AD-101635 COUNTERS TO BE FURNISHED BY IT UNDER PURCHASE ORDER NO. 4959-55-SCD BE INCREASED FROM $8.45 EACH TO $30.30 EACH BECAUSE OF A MISUNDERSTANDING EXISTING BETWEEN IT AND THE TOBYHANNA SIGNAL DEPOT AS TO THE ITEM COVERED BY ITS VERBAL BID ON WHICH THE SUBJECT ORDER IS BASED.

IT APPEARS FROM THE RECORD THAT THE TOBYHANNA SIGNAL DEPOT, TOBYHANNA, PENNSYLVANIA, ON JUNE 24, 1955, CONTACTED BY TELEPHONE A REPRESENTATIVE OF VEEDER-ROOT INCORPORATED AT ITS OFFICE IN PHILADELPHIA, PENNSYLVANIA, FOR A QUOTATION ON FIVE COUNTERS WITH CERTAIN SPECIAL FEATURES, AND THAT THE CORPORATION'S REPRESENTATIVE QUOTED A PRICE OF $8.45 EACH FOR COUNTERS IN THE CORPORATION'S NO. 1016 SERIES AND REQUESTED THAT THE ORDER FOR THE COUNTERS BE PLACED WITH THE CORPORATION'S OFFICE IN HARTFORD, CONNECTICUT. ON THE BASIS OF SUCH QUOTATION PURCHASE ORDER NO. 4969-55- SCD WAS PROCESSED ON JUNE 27, 1955, IN THE AMOUNT OF $42.25, AND SUCH ORDER CALLED FOR DELIVERY OF FIVE SERIES 1016 VEEDER-ROOT TYPE AX-53819 RECIPROCATING COUNTERS WITH FIXED MOUNTING, TOBYHANNA SIGNAL DEPOT STOCK NO. 6Z3417-24.

THE RECORD INDICATES THAT, AFTER CONSIDERABLE CORRESPONDENCE HAD PASSED BETWEEN THE CORPORATION AND THE CONTRACTING OFFICER RELATIVE TO THE SPECIAL FEATURES OF THE REQUIRED COUNTER, THE CORPORATION REQUESTED BY LETTERS DATED SEPTEMBER 28 AND OCTOBER 10, 1955, THAT THE PRICE OF THE SPECIAL COUNTERS BE INCREASED TO $30.30 EACH, AND POINTED OUT THAT THE PRICE OF $8.45 EACH ORIGINALLY QUOTED BY IT COVERED ITS STANDARD MODEL COUNTER WHICH DID NOT HAVE THE FIVE SPECIAL FEATURES FOUND IN THE REQUIRED COUNTER. BY LETTER DATED OCTOBER 19, 1955, THE CONTRACTING OFFICER ADVISED THE CORPORATION

THAT SHE WAS WITHOUT AUTHORITY TO CORRECT THE PRICE OF THE COUNTERS AND SUGGESTED THAT THE CORPORATION SUBMIT A CLAIM FOR ADDITIONAL COMPENSATION TO THE CLAIMS DIVISION OF THE GENERAL ACCOUNTING OFFICE. IN A LETTER DATED OCTOBER 26, 1955, THE CORPORATION ADVISED THE CONTRACTING OFFICER THAT IT HAD CHECKED WITH ITS PHILADELPHIA OFFICE AND THAT IT WAS ITS UNDERSTANDING THAT MR. JONES, THE PERSON WHO MADE THE VERBAL QUOTATION, HAD INDICATED AT THE TIME OF THE QUOTATION THAT IT COVERED ONLY THE CORPORATION'S STANDARD UNIT AND THAT THERE UNDOUBTEDLY WOULD BE EXTRA CHARGES FOR SPECIAL FEATURES. THE CORPORATION STATED THAT AT THE TIME OF THE VERBAL QUOTATION MR. JONES COULD NOT HAVE QUOTED THE CHARGES FOR THE SPECIAL FEATURES, AS THE AMOUNTS OF SUCH CHARGES WERE AVAILABLE ONLY AT ITS OFFICE IN HARTFORT, CONNECTICUT. IN A LETTER DATED NOVEMBER 18, 1955, TO OUR OFFICE, THE CORPORATION REQUESTED THAT THE UNIT PRICE OF THE COUNTERS BE INCREASED FROM $8.45 TO $30.30. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION BY LETTER DATED DECEMBER 14, 1955, FURNISHED A COPY OF ITS PRINTED PRICE LIST EFFECTIVE AUGUST 1, 1955, WHICH SPECIFIES FOR A SERIES 1016 NON-RESET DIRECT DRIVE COUNTER WITH FIVE FIGURES--- THE ITEM ON WHICH THE CORPORATION CONTENDS ITS REPRESENTATIVE QUOTED A PRICE-- - A LIST PRICE OF $8.80 EACH. THE CORPORATION ALSO FURNISHED A PHOTOSTATIC COPY OF A CARD RECORD WHICH, IT STATED, SHOWS THE PRICES FOR GRADUATED QUANTITIES OF SERIES 1016 SPECIAL COUNTERS TO BE MANUFACTURED IN ACCORDANCE WITH DRAWINGS NOS. AX-53819 AND AX-53820. ON THE FIRST LINE OF THE CARD RECORD, THERE APPEARS A PRICE OF $30.30 WHICH, IT IS ALLEGED, IS THE UNIT PRICE FOR THE SPECIAL COUNTERS REQUIRED UNDER THE PURCHASE ORDER.

THE QUOTATION RECEIVED FROM VEEDER-ROOT INCORPORATED WAS ORAL AND THERE IS NOTHING TO ESTABLISH DEFINITELY THAT THE PRICE QUOTED WAS FOR THE TYPE OF COUNTER DESIRED. MOREOVER, THE CORPORATION CONTENDS THAT ITS PHILADELPHIA REPRESENTATIVE COULD NOT HAVE QUOTED A PRICE FOR THE SPECIAL COUNTER SINCE A LIST OF THE CHARGES FOR THE SPECIAL FEATURES OF THE COUNTER WAS AVAILABLE ONLY AT ITS HARTFORD OFFICE. IN THE CIRCUMSTANCES WE THINK IT REASONABLY MAY BE CONCLUDED THAT THERE WAS NO MEETING OF THE MINDS OF THE PARTIES IN RESPECT TO THE SUBJECT MATTER OF THE PURCHASE AND, THEREFORE, THAT NO BINDING CONTRACT WAS CONSUMMATED.

ACCORDINGLY, PURCHASE ORDER NO. 4959-55-SCD SHOULD BE CANCELED WITHOUT LIABILITY TO THE CORPORATION OR, IF DELIVERY OF THE COUNTERS HAS BEEN MADE, THE CORPORATION MAY BE PAID FOR THE COUNTERS AT THE RATE OF $30.30 EACH, AS RECOMMENDED BY THE CONTRACTING OFFICER.