B-126424, JAN. 10, 1956

B-126424: Jan 10, 1956

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TO THE HONORABLE SECRETARY OF THE NAVY: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 22. THE BID WAS ACCOMPANIED BY LETTER OF THE SAME DATE. WHEREIN IT WAS STATED AS FOLLOWS: "ENCLOSED YOU WILL FIND OUR QUOTATION FOR THE SUBJECT INVITATION NUMBER IN THE TOTAL AMOUNT OF $7874.00. "THIS FIGURE IS COMPLETE INCLUDING ALL SPARE PARTS. "A BREAKDOWN WILL SHOW A TOTAL COST OF $335.00 FOR EACH OF 20 BREAD SLICERS IN ACCORDANCE WITH FEDERAL SPECIFICATIONS 00-M-66. "FREIGHT IS $4.20 PER HUNDRED WEIGHT. THE TOTAL WEIGHT OF THE SLICER IS 300 POUNDS. "INSTRUCTION BOOKS ARE PRICED AT $4.00 EACH IN QUANTITIES OF MORE THAN 50 AND THERE ARE 70 BOOKS CALLED FOR IN THE SUBJECT INVITATION. "MOTORS AND CONTROLS ON THE ABOVE QUOTATION ARE STANDARD COMMERCIAL TYPES.

B-126424, JAN. 10, 1956

TO THE HONORABLE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 22, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION THAT SHOULD BE TAKEN RELATIVE TO CONTRACT NO. N155S-14802.

THE GENERAL STORES SUPPLY OFFICE, PHILADELPHIA, PENNSYLVANIA, BY INVITATION NO. IFB-155/3/-436-55, REQUESTED BIDS FOR FURNISHING 20 BREAD- SLICING MACHINES IN ACCORDANCE WITH FEDERAL SPECIFICATION OO-M 66 AMENDMENT 3, DATED AUGUST 25, 1947. ONE OF THE PROVISIONS OF THE SPECIFICATIONS REQUIRES THE FURNISHING OF NAVY SERVICE "C" MOTORS AND CONTROLS.

IN RESPONSE TO THE INVITATION, OLIVER MACHINERY COMPANY SUBMITTED A BID DATED NOVEMBER 15, 1954, QUOTING A PRICE OF $393.70 PER MACHINE. THE BID WAS ACCOMPANIED BY LETTER OF THE SAME DATE, WHEREIN IT WAS STATED AS FOLLOWS:

"ENCLOSED YOU WILL FIND OUR QUOTATION FOR THE SUBJECT INVITATION NUMBER IN THE TOTAL AMOUNT OF $7874.00.

"THIS FIGURE IS COMPLETE INCLUDING ALL SPARE PARTS, INSTRUCTION BOOKS, PRESERVATION AND PACKAGING AS WELL AS FREIGHT TO NORFOLK, VIRGINIA, FOR 20 SLICERS.

"A BREAKDOWN WILL SHOW A TOTAL COST OF $335.00 FOR EACH OF 20 BREAD SLICERS IN ACCORDANCE WITH FEDERAL SPECIFICATIONS 00-M-66, TYPE III, CLASS A. THIS FIGURE INCLUDES INSTRUCTION BOOKS.

"A FURTHER BREAKDOWN SHOWS $300.00 FOR PRESERVATION AND PACKAGING, AT THE RATE OF $15.00 PER MACHINE AND PARTS; $622.00 FOR MECHANICAL AND ELECTRICAL SPARE PARTS AT THE RATE OF $31.10 PER SLICER.

"FREIGHT IS $4.20 PER HUNDRED WEIGHT. THE TOTAL WEIGHT OF THE SLICER IS 300 POUNDS, INCLUDING SPARE PARTS.

"INSTRUCTION BOOKS ARE PRICED AT $4.00 EACH IN QUANTITIES OF MORE THAN 50 AND THERE ARE 70 BOOKS CALLED FOR IN THE SUBJECT INVITATION.

"MOTORS AND CONTROLS ON THE ABOVE QUOTATION ARE STANDARD COMMERCIAL TYPES.

"ENCLOSED YOU WILL FIND SHEETS COVERING THE DIMENSIONS AND WEIGHT OF MACHINE; MATERIALS OF CONSTRUCTION OF PRINCIPLE PARTS AND DRAWINGS OF THE MACHINE TO BE FURNISHED.

"THE BREAD SLICER BEING QUOTED UPON IS KNOWN AS THE "OLIVER" NO. 797-16" GRAVITY FEED SLICER, WITH 32 INCH CHUTE AND 11/2 INCH SLICE SPACING. THE MOTOR IS 1/4 HP WIRED FOR SINGLE PHASE, 60 CYCLE, 115 VOLTS A.C. THE CRUMB TRAY IS NICKEL PLATED AND THE SLICER IS BUILT IN ACCORDANCE WITH THE FEDERAL SPECIFICATIONS 00-M-66.

"DELIVERY ON THE ABOVE QUOTATION CAN BE MADE IN 240 DAYS FROM DATE OF RECEIPT OF THE FORMAL ORDER IN GRAND RAPIDS, MICHIGAN.'

ONE OF THE SHEETS REFEREED TO IN THE LETTER,"MATERIAL USED IN CONSTRUCTION," INDICATED THAT THE MOTORS AND CONTROLS WOULD BE NAVY SERVICE "C" MOTORS AND CONTROLS.

THE ONE OTHER BID RECEIVED QUOTED A PRICE OF $435 PER MACHINE AND IT WAS NOT RESPONSIVE TO THE INVITATION. THE BID OF OLIVER MACHINERY COMPANY BEING THE LOWEST RECEIVED, AND BEING UNDERSTOOD AS COMPLYING WITH THE SPECIFICATION, WAS ACCEPTED ON DECEMBER 17, 1954.

BY LETTER DATED JANUARY 4, 1955, THE OLIVER MACHINERY COMPANY SUBMITTED A REQUEST TO THE CONTRACTING OFFICER FOR CLARIFICATION OF A QUESTION RAISED BY THE GOVERNMENT INSPECTORS IN GRAND RAPIDS, MICHIGAN, WITH REGARD TO THE TYPE OF MOTOR TO BE FURNISHED ON VARIOUS GOVERNMENT CONTRACTS. IT WAS STATED THAT, WHILE ITS BID ON THE CONTRACT HERE INVOLVED WAS BASED ON STANDARD COMMERCIAL MOTORS AND CONTROLS, THE INSPECTORS INSISTED THAT THE MENTION OF FEDERAL SPECIFICATION OO-M-66 REQUIRED THE FURNISHING OF NAVY SERVICE "C" MOTORS AND CONTROLS. THE COMPANY WAS ADVISED THAT NAVY SERVICE "C" MOTORS AND CONTROLS WERE REQUIRED UNDER THE CONTRACT. LETTER DATED FEBRUARY 15, 1955, THE COMPANY ADVISED THAT, WHILE AN ERROR HAD BEEN MADE IN ATTACHING THE WRONG MATERIAL SHEET WITH THE BID, NEVERTHELESS IT HAD STATED IN THE LETTER ACCOMPANYING THE BID THAT THE QUOTATION WAS BASED ON STANDARD COMMERCIAL TYPE MOTORS AND CONTROLS AND THAT THE STATEMENT IN THE SIGNED LETTER SHOULD HAVE INDICATED THE COMPANY'S INTENT RATHER THAN THE UNSIGNED, UNDATED TYPED MATERIAL SHEET. THE COMPANY REQUESTED AN INCREASE IN THE CONTRACT PRICE OF $1,350 OR $67.50 PER SLICER TO COVER THE ADDED COST OF FURNISHING NAVY SERVICE "C" MOTORS.

THE LETTER OF NOVEMBER 15, 1954, WHICH ACCOMPANIED THE BID, SET FORTH IN DETAIL THE BASIS OF THE BID AND STATED SPECIFICALLY THAT THE PRICE QUOTED WAS BASED ON STANDARD COMMERCIAL TYPE MOTORS AND CONTROLS. IT IS OUR BELIEF THAT SUCH STATEMENT TAKES PRECEDENCE OVER THE UNSIGNED, UNDATED TYPED MATERIAL SHEET. FURTHERMORE, THE RECORD ESTABLISHES THAT THE BID WAS BASED ON FURNISHING STANDARD COMMERCIAL TYPE MOTORS AND CONTROLS. THE CIRCUMSTANCES, IT MAY NOT BE CONSIDERED THAT THE ACCEPTANCE OF THE BID CONSUMMATED A VALID AND BINDING CONTRACT REQUIRING THE OLIVER MACHINERY COMPANY TO FURNISH SLICERS WITH NAVY SERVICE "C" MOTORS AND CONTROLS FOR THE PRICE QUOTED, AND, SINCE IT HAS BEEN DETERMINED THAT THE INCREASED PRICE REQUESTED IS REASONABLE, WE WILL NOT BE REQUIRED TO OBJECT TO AN AMENDMENT TO THE CONTRACT, INCREASING THE PRICE BY THE AMOUNT OF $1,350 OR $67.50 PER SLICER IN CONSIDERATION OF SUCH MOTORS AND CONTROLS BEING FURNISHED.

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