B-129028, AUG. 30, 1956

B-129028: Aug 30, 1956

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED AUGUST 20. A DECISION IS REQUESTED AS TO WHETHER THE CONTRACTOR MAY BE GRANTED RELIEF IN THIS CASE. AWARD WAS MADE TO THE EMPIRE ELECTRIC COMPANY AS TO ITEMS 3 AND 4 FOR A TOTAL BID PRICE OF $502.61. IT IS REPORTED THAT ON APRIL 2. A TELEPHONE CALL WAS RECEIVED FROM MR. THE PROPERTY DISPOSAL CONTRACTING OFFICER STATED THAT CONSIDERATION OF ALL FACTORS INDICATES THAT THE PROPERTY DISPOSAL OFFICE SHOULD HAVE BEEN ON NOTICE THAT THE BID OF $476.51 FOR ITEM 3 WAS OUT OF LINE WHEN COMPARED TO THE OTHER BIDS OF $15. THE BID OF $476.51 FOR THE ITEM IN A USED CONDITION SHOULD HAVE ALERTED THE PROPERTY DISPOSAL OFFICER TO A MISTAKE IN BID.

B-129028, AUG. 30, 1956

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED AUGUST 20, 1956, WITH ENCLOSURES, FROM THE DEPUTY ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), RELATING TO A MISTAKE IN BID ALLEGED BY THE EMPIRE ELECTRIC COMPANY, 5200 FIRST AVENUE, BROOKLYN 32, NEW YORK, AFTER THE AWARD OF CONTRACT NO. O.I. NO. S-56-63, DATED MARCH 29, 1956. A DECISION IS REQUESTED AS TO WHETHER THE CONTRACTOR MAY BE GRANTED RELIEF IN THIS CASE.

THE RECORD SHOWS THAT BY INVITATION NO. 30-145-S-56-14, DATED MARCH 8, 1956, THE PROPERTY DISPOSAL CONTRACTING OFFICER, WEST POINT, NEW YORK, OFFERED FOR SALE CERTAIN SURPLUS PROPERTY, THE BIDS TO BE OPENED AT 1:00 P.M. ON MARCH 28, 1956. UNDER DATE OF MARCH 27, 1956, THE EMPIRE ELECTRIC COMPANY SUBMITTED BIDS FOR SEVERAL OF THE ITEMS OF PROPERTY BEING OFFERED FOR SALE, AND UNDER DATE OF MARCH 29, 1956, AWARD WAS MADE TO THE EMPIRE ELECTRIC COMPANY AS TO ITEMS 3 AND 4 FOR A TOTAL BID PRICE OF $502.61, THERE HAVING BEEN A BID DEPOSIT OF $200.

IT IS REPORTED THAT ON APRIL 2, 1956, A TELEPHONE CALL WAS RECEIVED FROM MR. BEN HASNAS, PRESIDENT OF THE COMPANY, STATING THAT THE COMPANY HAD JUST DISCOVERED THAT IT HAD MADE AN ERROR BY PLACING ITS BID PRICE ON THE LINE BELOW THAT INTENDED IN THE INVITATION. BY LETTER OF APRIL 11, 1956, THE CONTRACTOR STATED THAT IT HAD INADVERTENTLY PLACED ITS BID PRICE FOR ITEM 1 IN THE SPACE PROVIDED FOR THE BID ON ITEM 2 AND THE PRICE FOR ITEM 2 IN THE SPACE PROVIDED FOR ITEM 3, ETC.

IN RECOMMENDING THAT THE AWARD IN THIS CASE TO THE EMPIRE ELECTRIC COMPANY BE CANCELLED, THE PROPERTY DISPOSAL CONTRACTING OFFICER STATED THAT CONSIDERATION OF ALL FACTORS INDICATES THAT THE PROPERTY DISPOSAL OFFICE SHOULD HAVE BEEN ON NOTICE THAT THE BID OF $476.51 FOR ITEM 3 WAS OUT OF LINE WHEN COMPARED TO THE OTHER BIDS OF $15, $5, AND $84.84, AND FURTHER, THAT WHEN COMPARED WITH THE ACQUISITION COST OF $450, THE BID OF $476.51 FOR THE ITEM IN A USED CONDITION SHOULD HAVE ALERTED THE PROPERTY DISPOSAL OFFICER TO A MISTAKE IN BID.

THE EVIDENCE PRESENTED APPEARS TO ESTABLISH THE EXISTENCE OF THE MISTAKE ALLEGED. IN VIEW OF THE FACTS STATED IN THE RECOMMENDATION OF THE PROPERTY DISPOSAL CONTRACTING OFFICER, WE CONCUR IN HIS VIEW THAT THE CONTRACT IN THIS CASE SHOULD BE CANCELLED AND REFUND MADE OF THE BID DEPOSIT, IT APPEARING THAT THE BID AS TO ITEM 3 WAS SO FAR OUT OF LINE BOTH WITH THE OTHER BIDS AND WITH THE GOVERNMENT'S COST AS TO REQUIRE VERIFICATION BEFORE AWARD.

THE PAPERS, WITH THE EXCEPTION OF THE STATEMENT DATED JULY 16, 1956, BY THE PROPERTY DISPOSAL CONTRACTING OFFICER, ARE RETURNED HEREWITH.