B-127725, AUG. 24, 1956

B-127725, AUG. 24, 1956

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER OF JUNE 29, 1956, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY (LOGISTICS), FURNISHING A REPORT RELATIVE TO AN ERROR ALLEGED BY ATLAS RIGGING AND SUPPLY COMPANY TO HAVE BEEN MADE ON ITEM 8 OF ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. TSMC-23 204-56-7, ON WHICH PURCHASE ORDER NO. 23-204-56-142, DATED MARCH 16, 1956, WAS BASED.

THE ABOVE-CITED INVITATION REQUESTED BIDS ON VARIOUS SIZES AND TYPES OF CARGO HOOKS, SLINGS, ETC. EACH OF THE ITEMS, SEVEN THROUGH TWELVE, APPEARING ON PAGE 4 OF THE INVITATION, REQUESTED BIDS ON 300 SLINGS EXCEPT ITEM 8 WHICH REQUESTED BIDS ON 150 SLINGS WITH CHOKER HOOKS. ITEM 11 COVERED THE IDENTICAL SLING AS ITEM 8, LESS THE CHOKER HOOK.

IN RESPONSE TO THE INVITATION, ATLAS RIGGING AND SUPPLY COMPANY SUBMITTED A BID ON, AMONG OTHERS, ITEMS 8 AND 11. THE PRICE QUOTED ON ITEM 11 WAS $6.68 PER UNIT AND THE EXTENDED AMOUNT WAS PROPERLY SHOWN AS $2,004. THE BID ON ITEM 8 WAS $6.21 PER UNIT AND IT APPEARS FROM THE CERTIFIED COPY OF THE BID SUBMITTED WITH YOUR LETTER THAT THE EXTENDED AMOUNT WAS ORIGINALLY SHOWN AS $1,863 (WHICH WOULD BE FOR 300) AND WAS LATER CHANGED TO $931.51, WHICH IS THE CORRECT AMOUNT FOR 150 UNITS.

THE BID OF ATLAS RIGGING AND SUPPLY COMPANY ON ITEM 8 AT A UNIT PRICE OF $6.21, BEING THE LOWEST RECEIVED, WAS ACCEPTED ON MARCH 16, 1956, BY PURCHASE ORDER NO. 23-204-56-142.

BY LETTER DATED MARCH 26, 1956, ATLAS RIGGING AND SUPPLY COMPANY ADVISED THAT AN ERROR HAD BEEN MADE ON ITEM 8, THE ONE ITEM ON WHICH IT HAD RECEIVED AWARD, AND REQUESTED PERMISSION TO WITHDRAW THE BID. THE BIDDER HAS SUBMITTED EVIDENCE IN SUPPORT OF ITS STATEMENT THAT IN COMPUTING THE BID PRICE ON ITEM 8 HE ACTUALLY USED THE SPECIFICATIONS FOR ITEM 9, TOGETHER WITH THE CHOKER HOOK, AND ARRIVED AT A COST OF $6.21 EACH OR $1,863 FOR 300 SLINGS. THIS ALLEGATION APPEARS TO BE SUPPORTED BY THE FACT THAT THERE WAS ORIGINALLY INCLUDED IN THE BID SUBMITTED THE SUM OF $1,863 AS THE TOTAL AMOUNT FOR ITEM 8. IT IS STATED THAT THE CORRECT BID PRICE FOR ITEM 8 SHOULD HAVE BEEN $9.10 EACH.

THE ABSTRACT OF BIDS SHOWS THAT THE NEXT LOWEST BID ON ITEM 8 IS $7.87 EACH, LESS A DISCOUNT OF THREE PERCENT FOR PAYMENT WITHIN 20 CALENDAR DAYS, AND THAT ALL THE OTHER 16 BIDDERS WHO QUOTED PRICES ON ITEMS 8 AND 11 QUOTED $2 OR MORE PER UNIT FOR ITEM 8 THAN FOR ITEM 11, WHEREAS THIS BIDDER'S PRICE FOR ITEM 8 IS 47 CENTS LESS THAN THE PRICE QUOTED FOR ITEM 11. ESTIMATED UNIT PRICES FURNISHED BY THE REQUISITIONING ACTIVITY WERE $4.57 AND $7.81 FOR ITEMS 11 AND 8, RESPECTIVELY.

IN THE CIRCUMSTANCES, THE BID OF ATLAS RIGGING AND SUPPLY COMPANY ON ITEM 8 APPEARS TO CONSTITUTE SO OBVIOUS A DEPARTURE FROM THE UNIFORM PATTERN OF THE BIDDING AS TO HAVE CALLED FOR VERIFICATION, AND ITS ACCEPTANCE MAY NOT BE CONSIDERED TO HAVE CONSUMMATED A VALID AND BINDING CONTRACT REQUIRING THE COMPANY TO FURNISH THESE SUPPLIES FOR THE PRICE STATED IN ITS BID. ACCORDINGLY, PURCHASE ORDER NO. 23-204-56 142 SHOULD BE CANCELED. HOWEVER, IF THE COMPANY HAS FURNISHED OR IS ABOUT TO FURNISH THE SUPPLIES, PAYMENT THEREFOR MAY BE MADE IN AN AMOUNT NOT TO EXCEED THE AMOUNT OF THE NEXT LOWEST BID.