B-126306, DEC. 22, 1955

B-126306: Dec 22, 1955

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TO THE HONORABLE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED DECEMBER 7. TO HAVE BEEN MADE IN ITS BID WHICH WAS SUBMITTED IN RESPONSE TO INVITATION NO. 33-058-A-56-1. THE BID WAS ACCEPTED WITH RESPECT TO THESE ITEMS. 20 AND 23 WAS ?0376. ERROR IS APPARENT ON THE FACE OF THE BID AS TO ITEMS 19. SINCE THE AMOUNT OF THE BID DEPOSIT IS APPROXIMATELY 20 PERCENT OF THE TOTAL BID PRICE. IT SEEMS APPARENT THAT THE ERROR WAS IN THE UNIT PRICE RATHER THAN THE TOTAL PRICE. IT IS REASONABLE TO CONCLUDE THAT THE CONTRACTING OFFICER WAS ON NOTICE OF A POSSIBLE ERROR AND THAT THE COMPANY SHOULD HAVE BEEN REQUESTED TO VERIFY ITS BID PRIOR TO ACCEPTANCE.

B-126306, DEC. 22, 1955

TO THE HONORABLE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED DECEMBER 7, 1955, WITH ENCLOSURES FROM THE ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY THE BRUNSWICK AUTO SUPPLY COMPANY, 378-382 BLUE HILL AVENUE, ROXBURY 21, MASSACHUSETTS, TO HAVE BEEN MADE IN ITS BID WHICH WAS SUBMITTED IN RESPONSE TO INVITATION NO. 33-058-A-56-1, DATED JULY 18, 1955, ISSUED BY THE LORDSTOWN ORDNANCE DEPOT, WARREN, OHIO.

THE BRUNSWICK AUTO SUPPLY COMPANY SUBMITTED A BID OF ?376, ?376 AND ?356 EACH FOR SCREWDRIVERS SPECIFIED UNDER ITEMS 19, 20 AND 23, RESPECTIVELY. THE BID WAS ACCEPTED WITH RESPECT TO THESE ITEMS, IN ADDITION TO THREE OTHER ITEMS, ON AUGUST 15, 1955. BY LETTER DATED AUGUST 29, 1955, THE COMPANY ADVISED THE PROPERTY DISPOSAL OFFICE THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT IT HAD FAILED TO INCLUDE A ZERO AND THAT THE INTENDED BID FOR ITEMS 19, 20 AND 23 WAS ?0376, ?0376 AND ?0356, RESPECTIVELY. THE COMPANY INVITED ATTENTION IN ITS LETTER TO THE FACT THAT THE TOTAL OF ITS BID AMOUNTED TO $2,833.50 AND THAT IT HAD ENCLOSED A CHECK FOR $600 TO COVER THE REQUIRED 20 PERCENT DEPOSIT.

ERROR IS APPARENT ON THE FACE OF THE BID AS TO ITEMS 19, 20 AND 23 SINCE THE QUANTITIES MULTIPLIED BY THE UNIT PRICES DO NOT EQUAL THE AMOUNTS INSERTED IN THE TOTAL PRICE BID COLUMN. ALSO, SINCE THE AMOUNT OF THE BID DEPOSIT IS APPROXIMATELY 20 PERCENT OF THE TOTAL BID PRICE, IT SEEMS APPARENT THAT THE ERROR WAS IN THE UNIT PRICE RATHER THAN THE TOTAL PRICE.

UNDER THE CIRCUMSTANCES, IT IS REASONABLE TO CONCLUDE THAT THE CONTRACTING OFFICER WAS ON NOTICE OF A POSSIBLE ERROR AND THAT THE COMPANY SHOULD HAVE BEEN REQUESTED TO VERIFY ITS BID PRIOR TO ACCEPTANCE. ACCORDINGLY, THE AWARD AS TO THE ITEMS IN QUESTION SHOULD BE CANCELED AND THE BID DEPOSIT APPLICABLE TO THESE ITEMS REFUNDED.

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