B-129217, SEP. 19, 1956

B-129217: Sep 19, 1956

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NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS: REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 13. A DECISION IS REQUESTED AS TO WHETHER. IT IS REPORTED THAT UPON OPENING OF THE BIDS AND PRIOR TO AWARD THE FIELD CONTRACTING OFFICER NOTED THE DISPARITY IN PRICES BETWEEN THE LOW BID OF THE GILLILAND INSTRUMENT COMPANY AND THE OTHER BIDS RECEIVED. A MEETING WAS HELD BETWEEN REPRESENTATIVES OF THE GILLILAND COMPANY AND THE NACA AMES LABORATORY TO DISCUSS THE PROPOSED AWARD OF A CONTRACT AND AT THAT TIME THE COMPANY STATED THAT AN ERROR HAD BEEN MADE IN EXTENDING AN ITEM ON ITS ESTIMATE SHEETS. THE EXECUTIVE OFFICER STATES THAT AN EXAMINATION OF THE COMPANY'S ORIGINAL ESTIMATE SHEETS INDICATES THAT AN ERROR WAS MADE AS ALLEGED.

B-129217, SEP. 19, 1956

TO HONORABLE JEROME C. HUNSAKER, CHAIRMAN, NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS:

REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 13, 1956, WITH ENCLOSURES, FROM MR. E. H. CHAMBERLIN, EXECUTIVE OFFICER, TRANSMITTING FOR CONSIDERATION THE MATTER OF A MISTAKE IN BID ALLEGED BY THE GILLILAND INSTRUMENT COMPANY, OAKLAND, CALIFORNIA, IN CONNECTION WITH NACA INVITATION NO. A-15922. A DECISION IS REQUESTED AS TO WHETHER, IN VIEW OF THE FACTS SET FORTH IN THE LETTER OF SEPTEMBER 13, AND ENCLOSURES, THE BID OF THE GILLILAND INSTRUMENT COMPANY CAN BE CORRECTED BY THE AMOUNT CLAIMED TO BE IN ERROR.

THE RECORD SHOWS THAT BY INVITATION NO. A-15922, DATED JULY 30, 1956, THE PROCUREMENT OFFICER, NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS, MOFFETT FIELD, CALIFORNIA, SOLICITED BIDS FOR THE DESIGN, FABRICATION AND DELIVERY OF TWO STRAIN GAGE OUTPUT TRANSLATORS TO THE NACA AMES AERONAUTICAL LABORATORY, MOFFETT FIELD, CALIFORNIA, THE BIDS TO BE OPENED AT 3 P.M. ON AUGUST 20, 1956--- SUBSEQUENTLY EXTENDED TO AUGUST 28, 1956. IN RESPONSE TO THE INVITATION, THE GILLILAND INSTRUMENT COMPANY OFFERED TO FURNISH THE EQUIPMENT FOR A TOTAL BID PRICE OF $61,475.

IT IS REPORTED THAT UPON OPENING OF THE BIDS AND PRIOR TO AWARD THE FIELD CONTRACTING OFFICER NOTED THE DISPARITY IN PRICES BETWEEN THE LOW BID OF THE GILLILAND INSTRUMENT COMPANY AND THE OTHER BIDS RECEIVED; THAT ON AUGUST 29, 1956, A MEETING WAS HELD BETWEEN REPRESENTATIVES OF THE GILLILAND COMPANY AND THE NACA AMES LABORATORY TO DISCUSS THE PROPOSED AWARD OF A CONTRACT AND AT THAT TIME THE COMPANY STATED THAT AN ERROR HAD BEEN MADE IN EXTENDING AN ITEM ON ITS ESTIMATE SHEETS. RESPECTING THE ALLEGATION OF MISTAKE, THE EXECUTIVE OFFICER STATES THAT AN EXAMINATION OF THE COMPANY'S ORIGINAL ESTIMATE SHEETS INDICATES THAT AN ERROR WAS MADE AS ALLEGED. HE ALSO POINTED OUT THAT IF THE BID IS INCREASED BY THE SUM OF $3,182.50--- THE AMOUNT OF THE CLAIMED ERROR--- THEREBY MAKING THE CORRECT BID PRICE $64,657.50, IT WOULD STILL BE MORE THAN $10,000 LOWER THAN THE NEXT BID RECEIVED.

THE EVIDENCE PRESENTED APPEARS TO ESTABLISH THE EXISTENCE OF A MISTAKE IN BID. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED PRIOR TO AWARD AND THE INTENDED BID PRICE FULLY ESTABLISHED, THE BID OF THE GILLILAND INSTRUMENT COMPANY MAY BE CORRECTED TO SHOW THE PRICE OF $64,657.50, AND AS SO CORRECTED MAY BE CONSIDERED IN MAKING THE AWARD.

IN THE EVENT OF AN AWARD TO THE GILLILAND INSTRUMENT COMPANY, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.

THE PAPERS TRANSMITTED WITH THE LETTER OF SEPTEMBER 13 ARE RETURNED HEREWITH.