B-128178, AUG. 13, 1956

B-128178, AUG. 13, 1956

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED JULY 27, 1956, WITH ENCLOSURES, FROM THE OFFICE OF THE CHIEF, ADJUDICATIONS BRANCH, SETTLEMENTS DIVISION, AIR FORCE FINANCE CENTER, DENVER, COLORADO, FURNISHING THE REPORT REQUESTED BY OUR OFFICE RELATIVE TO THE REQUEST OF THE GRAYBAR ELECTRIC COMPANY, INC., ATLANTA, GEORGIA, THAT THE CONTRACT PRICE OF 20 NO. 7657 HUBBARD TAPERED GUY-GUARDS TO BE FURNISHED BY THE CORPORATION UNDER PURCHASE ORDER NO. (09 -603/56-5810, BE INCREASED FROM $0.353 EACH TO $3.53 EACH BECAUSE OF A MISUNDERSTANDING EXISTING BETWEEN IT AND THE ROBINS AIR FORCE BASE AS TO THE PRICE VERBALLY QUOTED BY IT FOR THAT ITEM.

THE RECORD SHOWS THAT THE CONTRACTING OFFICER AT THE ROBINS AIR FORCE BASE, GEORGIA, ON MARCH 9, 1956, CONTACTED BY TELEPHONE A REPRESENTATIVE OF THE GRAYBAR ELECTRIC COMPANY INC., FOR A QUOTATION ON, AMONG OTHER ITEMS, 20 NO. 7657 HUBBARD TAPERED GUY-GUARDS, AND THAT THE CORPORATION'S REPRESENTATIVE QUOTED A PRICE OF $0.353 EACH FOR THE GUY-GUARDS. ON THE BASIS OF SUCH QUOTATION, PURCHASE ORDER NO. (09-603) 56-5810 WAS PROCESSED ON MARCH 9, 1956, IN THE AMOUNT OF $384.40.

BY LETTER DATED APRIL 5, 1956, THE CORPORATION ADVISED THAT WHEN IT GAVE A QUOTATION ON THE GUY-GUARDS, ITS REPRESENTATIVE QUOTED A PRICE OF $3.53 EACH, WHEREAS THE PURCHASE ORDER SPECIFIES A PRICE OF $0.353 EACH FOR THAT ITEM. THE CORPORATION REQUESTED THAT THE PURCHASE ORDER BE CORRECTED TO SHOW THE CORRECT PRICE FOR THAT ITEM. THE CONTRACTING OFFICER ADVISED THE CORPORATION BY LETTER DATED APRIL 16, 1956, THAT HE WAS WITHOUT AUTHORITY TO CORRECT THE PRICE OF THE GUY-GUARDS, AND IN A LETTER DATED APRIL 26, 1956, HE SUGGESTED THAT THE CORPORATION SUBMIT A CLAIM FOR ADDITIONAL COMPENSATION TO THE CLAIMS DIVISION, GENERAL ACCOUNTING OFFICE.

IN A LETTER DATED MAY 14, 1956, TO OUR OFFICE, THE CORPORATION REQUESTED THAT THE UNIT PRICE OF THE GUY-GUARDS REQUIRED UNDER ITEM 6 OF THE PURCHASE ORDER BE INCREASED FROM $0.353 TO $3.53. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION FURNISHED A COPY OF THE PRINTED PRICE LIST OF ITS SUPPLIER, HUBBARD AND COMPANY, WHICH SPECIFIES FOR A NO. 7657 GUY PROTECTOR, IN STANDARD PACKAGE QUANTITIES, A PRICE OF $353.38 PER HUNDRED FOR DELIVERIES WITHIN ZONE 2, WHICH ZONE INCLUDES THE STATE OF GEORGIA. THE CORPORATION ALSO FURNISHED A PHOTOSTATIC COPY OF PAGE 4 OF ITS PRINTED PRICE LIST WHICH SPECIFIES FOR A NO. 7657 HUBBARD GUY WIRE PROTECTOR, A PRICE OF $353.38 PER HUNDRED FOR HARDWARE ORDERS OF $30 AND OVER.

SINCE THE QUOTATION RECEIVED FROM THE GRAYBAR ELECTRIC COMPANY, INC., WAS ORAL, THERE IS NOTHING TO ESTABLISH DEFINITELY THE PRICE QUOTED BY THE CORPORATION FOR THE GUY-GUARDS. THE CONTRACTING OFFICER STATES IN HIS UNDATED REPORT THAT, SINCE NO OTHER ORAL BIDS WERE RECEIVED ON THE GUY- GUARDS, HE HAD NO REASON TO SUSPECT AN ERROR IN THE BID OF THE CORPORATION. HE STATED FURTHER THAT HAD HE CHECKED THE CORPORATION'S CATALOG, POSSIBILITY OF ERROR WOULD HAVE BEEN DETECTED. FOR THE PROTECTION OF THE UNITED STATES, A CONTRACTING OFFICER SHOULD ASCERTAIN THE REASONABLE VALUE OF AN ITEM BEFORE AWARD SO THAT HE CAN PROPERLY DETERMINE WHETHER THE BID IS AN ACCEPTABLE ONE TO THE GOVERNMENT. IN THE INSTANT CASE, IF THE CONTRACTING OFFICER HAD CHECKED THE CORPORATION'S CATALOG, THE PROBABILITY OF ERROR WOULD HAVE BEEN APPARENT, THE PRICE ALLEGEDLY QUOTED FOR THE GUY-GUARDS BEING ONE TENTH OF THE PRICE SHOWN IN THE CATALOG FOR THAT ITEM. THE CONCLUSION IS WARRANTED, THEREFORE, THAT THE GRAYBAR ELECTRIC COMPANY, INC., SHOULD NOT BE REQUIRED TO FURNISH THE GUY-GUARDS AT THE PRICE STIPULATED UNDER ITEM 6 OF THE PURCHASE ORDER.

SINCE IT IS REPORTED THAT THE SUPPLIES HAVE BEEN DELIVERED BY THE CORPORATION, PAYMENT IS AUTHORIZED TO BE MADE TO THE GRAYBAR ELECTRIC COMPANY, INC., AT A PRICE OF $3.53 EACH FOR THE GUY-GUARDS FURNISHED UNDER ITEM 6 OF THE PURCHASE ORDER.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING SUCH PAYMENT.