B-126623, JAN. 25, 1956

B-126623: Jan 25, 1956

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TO HONORABLE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED JANUARY 11. WAS BASED. B-144-56 BIDS WERE REQUESTED ON VARIOUS ITEMS OF MEDICAL MATERIAL. THIS BID ERRONEOUSLY WAS EXTENDED TO THE "TOTAL PRICE BID" COLUMN FOR THE ITEM AS $412.56 INSTEAD OF $422.56. WAS AWARDED TO MR. SINCE IT WAS LESS THAN THE REQUIRED 20 PERCENT OF THE TOTAL INCLUDING THE APPARENT BID ON ITEM 11. AT A PRICE OF $0.16 PER JAR THE TOTAL BID FOR ITEM NO. 11 SHOULD HAVE BEEN 4. IT IS NOTED THAT WHILE $422.56. IS THE INCORRECT AMOUNT FOR THAT ITEM. IT IS THE CORRECT TOTAL AMOUNT ($2. IT WAS INTENDED AS HIS CORRECTED BID FOR THAT ITEM AND NOT A BID FOR ITEM NO. 11. A PROBABILITY OF ERROR WAS APPARENT ON THE FACE OF THE BID.

B-126623, JAN. 25, 1956

TO HONORABLE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED JANUARY 11, 1956, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY (MATERIAL), RELATIVE TO AN ALLEGED ERROR IN A BID DATED NOVEMBER 26, 1955, SUBMITTED BY GEORGE M. HAYWARD IN A SALE OF GOVERNMENT-OWNED USABLE PROPERTY, MEDICAL MATERIAL, LOCATED AT THE SUPPLY DEPOT CLEAR FIELD, OGDEN, UTAH, ON WHICH CONTRACT NO. N665S-26801 DATED DECEMBER 6, 1955, WAS BASED.

BY INVITATION NO. B-144-56 BIDS WERE REQUESTED ON VARIOUS ITEMS OF MEDICAL MATERIAL. ITEM NO. 10 COVERED 2,641 1-POUND BOTTLES OF POWDERED TRAGACANTH GUM AND ITEM NO. 11 COVERED 4,996 1-POUND JARS OF SULPHUR OINTMENT. MR. HAYWARD BID ON SEVERAL ITEMS INCLUDING A BID OF $0.16 PER BOTTLE FOR ITEM NO. 10. THIS BID ERRONEOUSLY WAS EXTENDED TO THE "TOTAL PRICE BID" COLUMN FOR THE ITEM AS $412.56 INSTEAD OF $422.56. ALSO HE BID A UNIT PRICE OF $0.16 PER JAR ON ITEM NO. 11 AND EXTENDED THAT BID TO THE "TOTAL PRICE BID" COLUMN FOR THE ITEM AS $422.56.

ITEM NO. 11, ONLY, WAS AWARDED TO MR. HAYWARD, WHO UPON RECEIPT OF THE NOTICE OF AWARD ADVISED THE CONTRACTING OFFICER BY LETTER OF DECEMBER 10, 1955, THAT THERE MUST BE SOME MISTAKE SINCE HE DID NOT SUBMIT A BID ON ITEM NO. 11. IN SUBSTANTIATION OF HIS CONTENTION, HE ENCLOSED A MEMORANDUM, SAID TO BE A COPY OF HIS RECORD OF HIS BID, LISTING ITEMS NOS. 10, 12, 13, 15, 18, 19, 20, AND 22, WITH THE AMOUNTS QUOTED FOR EACH, AS THE ONLY ITEMS ON WHICH HE BID. HE ALSO CALLED ATTENTION TO HIS BID DEPOSIT OF $250 WHICH DID NOT REFLECT THE INTENTION OF BIDDING ON BOTH ITEM NO. 10 AND ITEM NO. 11, SINCE IT WAS LESS THAN THE REQUIRED 20 PERCENT OF THE TOTAL INCLUDING THE APPARENT BID ON ITEM 11. AT A PRICE OF $0.16 PER JAR THE TOTAL BID FOR ITEM NO. 11 SHOULD HAVE BEEN 4,996 X $0.16, OR $799.36, AND NOT $422.56, THE AMOUNT INSERTED IN THE "TOTAL PRICE BID" COLUMN FOR THAT ITEM. ALSO, IT IS NOTED THAT WHILE $422.56, THE TOTAL AMOUNT QUOTED FOR ITEM NO. 11, IS THE INCORRECT AMOUNT FOR THAT ITEM, IT IS THE CORRECT TOTAL AMOUNT ($2,641 X $0.16) AS INTENDED FOR ITEM NO. 10, AND IT APPEARS PROBABLE THAT, AS THE BIDDER CONTENDS, IT WAS INTENDED AS HIS CORRECTED BID FOR THAT ITEM AND NOT A BID FOR ITEM NO. 11.

A PROBABILITY OF ERROR WAS APPARENT ON THE FACE OF THE BID, SINCE THE UNIT PRICE OF $0.16 QUOTED FOR ITEM 11, MULTIPLIED BY THE QUANTITY INVOLVED, DOES NOT EQUAL THE AMOUNT AS EXTENDED TO THE "TOTAL PRICE BID" COLUMN, AND THE DISCREPANCY COULD NOT BE ATTRIBUTED TO MATHEMATICAL ERROR. ALSO, THE ABSTRACT OF BIDS SHOWS THAT MR. HAYWARD'S BID OF $0.16 PER JAR ON ITEM NO. 11 IS NOTICEABLY OUT OF LINE WITH THE FIVE OTHER BIDS, RANGING FROM $0.0511 TO $0.002 PER JAR, RECEIVED ON THAT ITEM. IN THE LIGHT OF THE CUMULATIVE EFFECT OF ALL THESE FACTS, THE BIDDER SHOULD HAVE BEEN AFFORDED AN OPPORTUNITY TO VERIFY ITS UNIT PRICE BID OF $0.16 ON ITEM NO. 11 BEFORE THE ACCEPTANCE THEREOF AS TO THAT ITEM. SINCE THIS WAS NOT DONE, THE ACCEPTANCE IN THIS CASE DID NOT CONSUMMATE A VALID AND BINDING CONTRACT.

ACCORDINGLY, THE AWARD SHOULD BE CANCELLED AND THE BID DEPOSIT RETURNED TO MR. HAYWARD.