B-127769, MAY 14, 1956

B-127769: May 14, 1956

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TO THE HONORABLE ATTORNEY GENERAL: REFERENCE IS MADE TO A LETTER DATED APRIL 27. J FBI-2183 WAS AWARDED. THE DECISION IS BEING ADDRESSED TO YOU. THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEMS 5. THE COMPANY ADVISED THAT ITS BID PRICE OF $80.90 EACH FOR ITEM 7 WAS IN ERROR IN THAT IT WAS BASED ON FURNISHING AN ANDREW CORPORATION TYPE 3606-2 ANTENNA AND NOT A TYPE 3608-2 ANTENNA. IT WOULD HAVE TO PAY ITS SUPPLIER FOR THE REQUIRED ANTENNA. WHICH IS EFFECTIVE JANUARY 1. - THE TYPE ON WHICH THE COMPANY STATES ITS BID PRICE WAS BASED. THE COMPANY STATES THAT THE PRICES QUOTED TO IT BY ITS SUPPLIER WERE $60 EACH FOR THE TYPE 3606-2 ANTENNA AND $108.75 EACH FOR THE TYPE 3608-2 ANTENNA IN QUANTITIES OF 24.

B-127769, MAY 14, 1956

TO THE HONORABLE ATTORNEY GENERAL:

REFERENCE IS MADE TO A LETTER DATED APRIL 27, 1956, WITH ENCLOSURES, FROM THE ASSISTANT DIRECTOR, FEDERAL BUREAU OF INVESTIGATION, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE GENERAL ELECTRIC COMPANY, ELECTRONICS PARK, SYRACUSE, NEW YORK, ALLEGES IT MADE IN ITS BID ON WHICH CONTRACT NO. J FBI-2183 WAS AWARDED.

SINCE AN AWARD HAS BEEN MADE IN THE PRESENT CASE, THE DECISION IS BEING ADDRESSED TO YOU. SEE 26 COMP. GEN. 993; AND 28 ID. 401.

THE FEDERAL BUREAU OF INVESTIGATION, WASHINGTON, D.C., BY INVITATION NO. 185, REQUESTED BIDS FOR FURNISHING, AMONG OTHER ITEMS OF FM RADIO EQUIPMENT, A QUANTITY OF DIRECTIONAL ANTENNAS, ITEM 7. THE SPECIFICATIONS PROVIDE THAT THE ANTENNAS BE OF THE ANDREW CORNER REFLECTOR TYPE OR EQUAL. IN RESPONSE, THE GENERAL ELECTRIC COMPANY SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHER ITEMS, ANDREW CORPORATION TYPE 3606-2 DIRECTIONAL ANTENNAS AT A PRICE OF $80.90 EACH. THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEMS 5, 6, 7, AND 14 ON FEBRUARY 13, 1956.

BY LETTER DATED APRIL 2, 1956, THE COMPANY ADVISED THAT ITS BID PRICE OF $80.90 EACH FOR ITEM 7 WAS IN ERROR IN THAT IT WAS BASED ON FURNISHING AN ANDREW CORPORATION TYPE 3606-2 ANTENNA AND NOT A TYPE 3608-2 ANTENNA, AS REQUIRED. THE COMPANY REQUESTED THAT THE UNIT PRICE OF ITEM 7 BE INCREASED TO $108,75, THE AMOUNT WHICH, IT STATES, IT WOULD HAVE TO PAY ITS SUPPLIER FOR THE REQUIRED ANTENNA. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY, BY LETTER DATED MAY 7, 1956, FURNISHED A COPY OF THE PRINTED PRICE LIST OF ITS SUPPLIER, ANDREW CORPORATION. THE PRICE LIST, WHICH IS EFFECTIVE JANUARY 1, 1956, SPECIFIES FOR A TYPE 3606-2 CORNER REFLECTOR ANTENNA--- THE TYPE ON WHICH THE COMPANY STATES ITS BID PRICE WAS BASED--- A PRICE OF $80 EACH; AND FOR A TYPE 3608-2 CORNER REFLECTOR ANTENNA--- THE TYPE REQUIRED BY THE SPECIFICATIONS--- IT SPECIFIES A PRICE OF $145 EACH. IN ITS LETTER OF MAY 7, 1956, THE COMPANY STATES THAT THE PRICES QUOTED TO IT BY ITS SUPPLIER WERE $60 EACH FOR THE TYPE 3606-2 ANTENNA AND $108.75 EACH FOR THE TYPE 3608-2 ANTENNA IN QUANTITIES OF 24.

THE ABSTRACT OF BIDS SHOWS THAT THE TWO OTHER BIDS ON ITEM 7 WERE IN THE AMOUNTS OF $130 AND $147.50 EACH, THE LATTER AMOUNT HAVING BEEN QUOTED BY THE MANUFACTURER OF THE REQUIRED ITEM. THERE IS NO STATEMENT IN THE FILE AS TO WHETHER THE CONTRACTING OFFICER CONSIDERED THE COMPANY'S BID OF $80.90 EACH FOR ITEM 7 AS OUT OF LINE WITH THE OTHER BIDS, BUT IN VIEW OF THE DISCREPANCY BETWEEN THE LOW BID AND THE OTHER BIDS, PARTICULARLY THAT OF THE MANUFACTURER OF THE REQUIRED ITEM, IT IS BELIEVED THAT THE CONTRACTING OFFICER SHOULD NOT HAVE ACCEPTED THE LOW BID WITHOUT REQUESTING THE BIDDER TO VERIFY ITS PRICE.

IT IS UNDERSTOOD INFORMALLY THAT NO DELIVERIES HAVE BEEN MADE UNDER ITEM 7 OF THE CONTRACT. ACCORDINGLY, ITEM 7 OF THE CONTRACT MAY BE CANCELLED WITHOUT LIABILITY TO THE COMPANY. HOWEVER, IF DELIVERIES OF THE RADIO EQUIPMENT REQUIRED UNDER ITEM 7 HAVE BEEN MADE, OR ARE NOT BEING MADE, PAYMENT IS AUTHORIZED TO BE MADE TO THE GENERAL ELECTRIC COMPANY FOR THE FURNISHING OF THE ANTENNAS CALLED FOR UNDER ITEM 7 OF THE CONTRACT AT A PRICE OF $108.75 EACH, THE AMOUNT WHICH THE COMPANY STATES IT WILL HAVE TO PAY ITS SUPPLIER.