B-129684, NOV. 14, 1956

B-129684: Nov 14, 1956

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED OCTOBER 30. TO HAVE BEEN MADE IN ITS BID SUBMITTED PURSUANT TO INVITATION FOR BIDS NO. THE BID WAS ACCEPTED AS TO ITEMS NOS. 13 AND 16 AND BECAME THE BASIS OF CONTRACT NO. 04-197-OI-/S/-27-57. ITEMS NOS. 13 AND 14 WERE DESCRIBED IN THE INVITATION AS FOLLOWS: "/SCL-169-409-417-418-423-525-426) MISC. SIX OTHER BIDS WERE RECEIVED ON ITEMS NO. 13. THE BID OF DICK'S IRON AND METAL COMPANY WAS ACCEPTED AS TO ITEMS NOS. 13 AND 16. A REPRESENTATIVE OF THE BIDDER ADVISED THE CONTRACTING OFFICER ORALLY THAT THE BID SUBMITTED ON ITEM NO. 13 WAS INTENDED TO BE ON ITEM NO. 14 AND THAT THE ERROR WAS NOT NOTICED UNTIL THE AWARD WAS RECEIVED BY HIM SEPTEMBER 15 ON HIS RETURN FROM A BUSINESS TRIP.

B-129684, NOV. 14, 1956

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 30, 1956, FROM THE ASSISTANT SECRETARY (LOGISTICS), WITH ENCLOSURES, RELATIVE TO AN ERROR ALLEGED BY DICK'S IRON AND METAL COMPANY, FRESNO, CALIFORNIA, TO HAVE BEEN MADE IN ITS BID SUBMITTED PURSUANT TO INVITATION FOR BIDS NO. AIV 04-197-S-57-6, ISSUED AUGUST 16, 1956, BY THE PROPERTY DISPOSAL BRANCH, OAKLAND ARMY TERMINAL, OAKLAND, CALIFORNIA. THE BID WAS ACCEPTED AS TO ITEMS NOS. 13 AND 16 AND BECAME THE BASIS OF CONTRACT NO. 04-197-OI-/S/-27-57, DATED SEPTEMBER 12, 1956.

THE INVITATION REQUESTED BIDS OF SALVAGE AND SCRAP MATERIALS CONSISTING OF 21 ITEMS, BIDS TO BE OPENED SEPTEMBER 6, 1956. ITEMS NOS. 13 AND 14 WERE DESCRIBED IN THE INVITATION AS FOLLOWS:

"/SCL-169-409-417-418-423-525-426)

MISC. BUILDING HARDWARE, INCLUDING SCREEN

WINDOWS, SHOVELS, LADDERS, ETC.

(EST.WT. 10,070 LBS.)

($985.00/*

"/SCL-169-430) CONVEYORS, MISC. TYPES, SIZES,

AND STANDS, ETC.

(EST.WT. 27,984 LBS.)

($2,820.80/*"

IN RESPONSE TO THE INVITATION, DICK'S IRON AND METAL COMPANY SUBMITTED A BID OF ITEMS NOS. 11, 13 AND 16, ITS BID ON ITEM NO. 13 BEING IN THE AMOUNT OF $501.11--- MORE THAN HALF OF THE STATED ACQUISITION COST OF $985. SIX OTHER BIDS WERE RECEIVED ON ITEMS NO. 13, RANGING FROM $31.15 TO $137.50. BIDS RECEIVED ON ITEM NO. 14 RANGED FROM $101.50 TO $1,039.92. ON SEPTEMBER 12, 1956, THE BID OF DICK'S IRON AND METAL COMPANY WAS ACCEPTED AS TO ITEMS NOS. 13 AND 16. ON MONDAY, SEPTEMBER 16, A REPRESENTATIVE OF THE BIDDER ADVISED THE CONTRACTING OFFICER ORALLY THAT THE BID SUBMITTED ON ITEM NO. 13 WAS INTENDED TO BE ON ITEM NO. 14 AND THAT THE ERROR WAS NOT NOTICED UNTIL THE AWARD WAS RECEIVED BY HIM SEPTEMBER 15 ON HIS RETURN FROM A BUSINESS TRIP. HE ALSO SUBMITTED HIS WORK COPY OF THE INVITATION SHOWING THAT COMPUTATIONS MADE THEREON WERE BASED ON ITEM NO. 14 INSTEAD OF ITEM NO. 13. BY LETTER DATED SEPTEMBER 18, 1956, HE REQUESTED RELIEF FROM THE AWARD ON ITEM NO. 13.

IN VIEW OF THE FACTS OF THIS MATTER AS REPORTED AND AS SHOWN BY THE FILE, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT DICK'S IRON AND METAL COMPANY MADE A BONA FIDE ERROR IN ITS BID, AS ALLEGED AND EXPLAINED BY IT. IN THE ABSENCE OF ANY IDENTIFICATION THAT THE LOT INCLUDED ANY ARTICLES OF EXCEPTIONAL VALUE OR UTILITY, AND IN THE LIGHT OF THE RANGE OF THE OTHER BIDS, WE ARE OF THE OPINION THAT THE BID OF MORE THAN HALF OF THE ORIGINAL ACQUISITION COST FOR SALVAGED BUILDING MATERIALS, WAS SUFFICIENTLY OUT OF LINE TO PUT THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF ERROR. ACCORDINGLY, THE CONTRACTOR MAY BE RELIEVED OF THE AWARD AS TO ITEM NO. 13.