B-129392, OCT. 17, 1956

B-129392: Oct 17, 1956

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 1. N60050S-2460 WAS AWARDED. KLEIN WAS ACCOMPANIED BY A BID GUARANTEE IN THE AMOUNT OF $225. KLEIN WAS EVALUATED PRIOR TO AWARD ON THE BASIS OF THE UNIT PRICE ENTERED ON THE BID AND THAT ITEM 53 WAS AWARDED TO MR. KLEIN ADVISED THE CONTRACTING OFFICER THAT HE HAD MADE AN ERROR IN PLACING THE DECIMAL POINT IN THE UNIT PRICE OF $0.025 EACH FOR ITEM 53 AND THAT THE AMOUNT OF THE EXTENDED TOTAL FOR THAT ITEM ESTABLISHES THAT IT WAS HIS INTENT TO QUOTE A UNIT PRICE OF $0.0025 EACH FOR THE LAG SCREWS COVERED BY ITEM 53. ERROR IS APPARENT ON THE FACE OF THE BID AS TO ITEM 53. IF THE INTENDED UNIT PRICE FOR THAT ITEM IS MULTIPLIED BY THE QUANTITY SPECIFIED.

B-129392, OCT. 17, 1956

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 1, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR MR. ROBERT KLEIN, LOS ANGELES, CALIFORNIA, ALLEGES HE MADE IN HIS BID ON WHICH CONTRACT NO. N60050S-2460 WAS AWARDED.

BY INVITATION NO. B-1-57, THE NAVY SUPPLY AND FISCAL OFFICER, U.S. MARINE CORPS AIR STATION, EL TORO (SANTA ANA), CALIFORNIA, REQUESTED BIDS FOR THE PURCHASE FROM THE GOVERNMENT OF, AMONG OTHER ITEMS, 16,927 GALVANIZED STEEL LAG SCREWS, ITEM 53. IN RESPONSE MR. ROBERT KLEIN SUBMITTED A BID OFFERING TO PURCHASE, AMONG OTHER ARTICLES, THE LAG SCREWS COVERED BY ITEM 53 AT A PRICE OF $0.025 EACH FOR WHICH HE EXTENDED THE PRICE AS $42.32. THE BID OF MR. KLEIN WAS ACCOMPANIED BY A BID GUARANTEE IN THE AMOUNT OF $225. THE ABSTRACT OF BIDS SHOWS THAT THE SIX OTHER BIDS ON ITEM 53 RANGED FROM $0.0075 EACH TO $0.001 EACH.

IN HIS REPORT DATED SEPTEMBER 14, 1956, THE CONTRACTING OFFICER STATES THAT ITEM 53 OF THE BID OF MR. KLEIN WAS EVALUATED PRIOR TO AWARD ON THE BASIS OF THE UNIT PRICE ENTERED ON THE BID AND THAT ITEM 53 WAS AWARDED TO MR. KLEIN ON AUGUST 9, 1956, ON THE BASIS OF THE UNIT PRICE SHOWN IN HIS BID.

BY LETTER DATED AUGUST 29, 1956, MR. KLEIN ADVISED THE CONTRACTING OFFICER THAT HE HAD MADE AN ERROR IN PLACING THE DECIMAL POINT IN THE UNIT PRICE OF $0.025 EACH FOR ITEM 53 AND THAT THE AMOUNT OF THE EXTENDED TOTAL FOR THAT ITEM ESTABLISHES THAT IT WAS HIS INTENT TO QUOTE A UNIT PRICE OF $0.0025 EACH FOR THE LAG SCREWS COVERED BY ITEM 53; AND REQUESTED THAT THIS BID BE CORRECTED ACCORDINGLY.

ERROR IS APPARENT ON THE FACE OF THE BID AS TO ITEM 53, SINCE THE UNIT PRICE FOR THE ITEM WHEN MULTIPLIED BY THE QUANTITY SPECIFIED FOR THAT ITEM DOES NOT EQUAL THE AMOUNT INSERTED IN THE TOTAL AMOUNT COLUMN. IF THE INTENDED UNIT PRICE FOR THAT ITEM IS MULTIPLIED BY THE QUANTITY SPECIFIED, THE TOTAL WILL BE THE SAME AS SHOWN IN THE BID SUBMITTED. ALSO, IT APPEARS THAT MR. KLEIN'S BID DEPOSIT OF $225 ON ALL ITEMS WAS NOT BASED ON THE PURCHASE OF THE LAG SCREWS COVERED BY ITEM 53 AT A PRICE OF $0.025 EACH. N THE CIRCUMSTANCES, MR. KLEIN SHOULD HAVE BEEN REQUESTED TO VERIFY HIS BID BEFORE ITS ACCEPTANCE.

WHILE THE INVITATION TO BID PROVIDED THAT IN CASE OF ERROR IN EXTENSION UNIT PRICES WOULD GOVERN, AND WHILE IT HAS BEEN HELD THAT THERE IS NO DUTY UPON THE CONTRACTING OFFICER TO COMPUTE THE EXTENSIONS OF UNIT PRICES CONTAINED IN BIDS IN ORDER TO DETERMINE THE CORRECTNESS OF SUCH EXTENSIONS, THAT PRINCIPLE CLEARLY IS NOT FOR APPLICATION WHERE, AS HERE, AN ERROR IN UNIT PRICE IS APPARENT ON THE FACE OF THE BID AND THE CONTRACTING OFFICER WAS ON NOTICE OF SUCH ERROR PRIOR TO AND AT THE TIME OF MAKING THE AWARD. SEE. 15 COMP. GEN. 746.

ALTHOUGH THERE APPEARS NO ROOM FOR DOUBT THAT MR. KLEIN MADE AN ERROR IN INSERTING THE UNIT BID PRICE FOR ITEM 53, IF THE BID BE CORRECTED TO REFLECT HIS INTENDED UNIT BID PRICE OF $0.0025 EACH FOR ITEM 53, IT WILL NOT BE THE HIGHEST BID RECEIVED ON THAT ITEM.

ACCORDINGLY, MR. ROBERT KLEIN MAY BE RELEASED FROM HIS OBLIGATION UNDER CONTRACT NO. N60050S-2460 WITH REGARD TO ITEM 53.

THE PAPERS, WITH THE EXCEPTION OF THE ABSTRACT OF BIDS AND THE CONTRACTING OFFICER'S STATEMENT DATED SEPTEMBER 14, 1956, ARE RETURNED.