B-128524, JUL. 23, 1956

B-128524: Jul 23, 1956

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED JULY 5. TO HAVE BEEN MADE IN HIS BID SUBMITTED IN RESPONSE TO INVITATION NO. THE BID AS TO LOT NO. 16 WAS ACCEPTED AND BECAME THE BASIS OF CONTRACT NO. LOT NO. 16 WAS DESCRIBED IN PART AS FOLLOWS: "TRUCK. THE DESCRIPTION OF LOT NO. 17 WAS IN PART AS FOLLOWS: "TRACTOR CRAWLER. IT IS STATED IN A LETTER OF JUNE 1. THAT THE ESTIMATED COST OF REPAIRS ON THE TRUCK DESCRIBED IN LOT 16 WAS $1. HE STATES THAT HIS BID WAS INTENDED FOR LOT NO. 17. THAT HIS BID WAS SUBMITTED HURRIEDLY WITHOUT AMPLE TIME FOR REVIEW. NINE OTHER BIDS WERE RECEIVED ON LOT NO. 16. BECAUSE OF THE DISPARITY BETWEEN HIS BID AND THE OTHER BIDS RECEIVED AND BECAUSE OF THE FACT THAT HIS BID ON LOT NO. 16 WAS CLEARLY EXCESSIVE.

B-128524, JUL. 23, 1956

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED JULY 5, 1956, FROM THE ASSISTANT SECRETARY OF THE NAVY (MATERIAL), WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY MARIO GRINO OF CALOOCAN, RIZAL, PHILIPPINES, TO HAVE BEEN MADE IN HIS BID SUBMITTED IN RESPONSE TO INVITATION NO. B-94-56, ISSUED BY THE U.S. NAVAL SUPPLY DEPOT, DISPOSAL DIVISION, SUBIC BAY, PHILIPPINES, UNDER DATE OF APRIL 19, 1956, FOR THE SALE OF SURPLUS PROPERTY. THE BID AS TO LOT NO. 16 WAS ACCEPTED AND BECAME THE BASIS OF CONTRACT NO. N651-1531, DATED MAY 10, 1956.

THE INVITATION REQUESTED BIDS, TO BE OPENED ON MAY 10, 1956, ON 20 LOTS OF SURPLUS PROPERTY DESCRIBED THEREIN. LOT NO. 16 WAS DESCRIBED IN PART AS FOLLOWS:

"TRUCK, STAKE, * * * 2 1/2 TON, * * * YEAR 1951 * * *.

"ACQUISITION COST: $2,889.56.

"CONDITION: USED, REPAIRS REQUIRED, POOR.' THE DESCRIPTION OF LOT NO. 17 WAS IN PART AS FOLLOWS:

"TRACTOR CRAWLER, 113-130 DBHP, LESS POWER UNIT AND

STARTING ENGINE * * *.

"ACQUISITION COST: $9,000.

"CONDITION: USED, REPAIRS REQUIRED, POR.'

IT IS STATED IN A LETTER OF JUNE 1, 1956, FROM THE COMMANDING OFFICER OF THE U.S. NAVAL SUPPLY DEPOT, SUBIC BAY, THAT THE ESTIMATED COST OF REPAIRS ON THE TRUCK DESCRIBED IN LOT 16 WAS $1,978.

IN RESPONSE TO THE INVITATION, MARIO GRINO SUBMITTED A BID OF $4,201 ($2,092.10), ACCOMPANIED BY A DEPOSIT OF 1,700 PESOS ($846.60), ON LOT NO. 16. IN HIS LETTER OF MAY 16, 1956, HE STATES THAT HIS BID WAS INTENDED FOR LOT NO. 17; THAT HE DEALS WITH DIESEL EQUIPMENT SUCH AS THAT INCLUDED IN LOT NO. 17, AND THAT HIS BID WAS SUBMITTED HURRIEDLY WITHOUT AMPLE TIME FOR REVIEW. HE REQUESTS, IN EFFECT, THAT THE CONTRACT BE CANCELLED AND HIS BID DEPOSIT REFUNDED.

NINE OTHER BIDS WERE RECEIVED ON LOT NO. 16, ONE IN THE AMOUNT OF 65 PESOS, AND EIGHT RANGING FROM 600 PESOS TO 1,700 PESOS. BIDS RECEIVED ON LOT NO. 17 RANGED FROM 2,028.80 PESOS TO 7,000 PESOS.

IN VIEW OF THE FACTS REPORTED, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT MARIO GRINO MADE AN ERROR IN HIS BID, INTENDING TO BID ON LOT NO. 17 INSTEAD OF LOT NO. 16. ALSO, BECAUSE OF THE DISPARITY BETWEEN HIS BID AND THE OTHER BIDS RECEIVED AND BECAUSE OF THE FACT THAT HIS BID ON LOT NO. 16 WAS CLEARLY EXCESSIVE, ON THE BASIS OF ACQUISITION COST AND CONDITION OF THE ITEM, THE CONTRACTING OFFICER SHOULD HAVE REQUESTED VERIFICATION BEFORE MAKING THE AWARD. ACCORDINGLY, THE CONTRACT MAY BE CANCELLED AND THE AMOUNT OF THE BID DEPOSIT REFUNDED TO THE BIDDER.

THE BIDDER'S LETTER OF MAY 16, 1956, AND THE DISBURSING OFFICER'S CERTIFICATE THAT THE CLAIM HAS NOT BEEN PAID AND HIS STATEMENT AS TO MONIES RECEIVED ARE RETURNED HEREWITH.