B-129966, DEC. 17, 1956

B-129966: Dec 17, 1956

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TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED DECEMBER 1. AF 41/641/-S-49 WAS AWARDED. THE DECISION IS BEING ADDRESSED TO YOU. THE BID OF THE COMPANY WAS ACCEPTED AS TO SEVERAL ITEMS. THE OTHER BIDS RECEIVED ON ITEM 17 WERE $3 AND $2. THE POSSIBILITY OF ERROR WAS APPARENT AND. THE BID AS TO ITEM 17 SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID. SINCE IT IS REPORTED THAT THE PROPERTY IS STILL IN THE POSSESSION OF THE GOVERNMENT. ARE RETURNED.

B-129966, DEC. 17, 1956

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED DECEMBER 1, 1956, FROM HEADQUARTERS, 3640TH PILOT TRAINING WING (BASE), LAREDO AIR FORCE BASE, TEXAS, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE FEDERAL IRON AND METAL COMPANY, INC., CORPUS CHRISTI, TEXAS, ALLEGES IT MADE IN ITS BID ON WHICH CONTRACT NO. AF 41/641/-S-49 WAS AWARDED.

SINCE AN AWARD HAS BEEN MADE IN THE PRESENT CASE, THE DECISION IS BEING ADDRESSED TO YOU. SEE 26 COMP. GEN. 993; AND 28 ID. 401.

BY INVITATION NO. 41-641-S-56-4, DATED APRIL 24, 1956, THE PROCUREMENT OFFICE, LAREDO AIR FORCE BASE, TEXAS, REQUESTED BIDS FOR THE PURCHASE AND REMOVAL OF VARIOUS LOTS OF SURPLUS GOVERNMENT PROPERTY, INCLUDING 16 GROSS TONS OF IRON AND STEEL SCRAP, CONSISTING OF FLATTENED TIN CANS ONLY, ITEM 17. IN RESPONSE, THE FEDERAL IRON AND METAL COMPANY, INC., SUBMITTED A BID ON ITEM 17 OF $16.02 PER GROSS TON, OR A TOTAL PRICE OF $256.32. THE BID OF THE COMPANY WAS ACCEPTED AS TO SEVERAL ITEMS, INCLUDING ITEM 17, ON MAY 28, 1956.

BY LETTER OF JUNE 2, 1956, THE CONTRACTOR ADVISED THE CONTRACTING OFFICER THAT IT HAD MADE A MISTAKE IN ITS BID ON ITEM 17, DUE TO A MISPLACED DECIMAL POINT, AND THAT IT INTENDED TO BID $1.602 PER GROSS TON INSTEAD OF $16.02. THE OTHER BIDS RECEIVED ON ITEM 17 WERE $3 AND $2.

IN VIEW OF THE DIFFERENCE BETWEEN THE COMPANY'S BID OF $16.02 PER GROSS TON FOR ITEM 17 AND THE OTHER BIDS THEREON, THE POSSIBILITY OF ERROR WAS APPARENT AND, UNDER THE CIRCUMSTANCES, THE BID AS TO ITEM 17 SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID.

ACCORDINGLY, AND SINCE IT IS REPORTED THAT THE PROPERTY IS STILL IN THE POSSESSION OF THE GOVERNMENT, THE CONTRACT SHOULD BE CANCELED AS TO ITEM 17 WITH A CORRESPONDING ADJUSTMENT IN THE TOTAL CONTRACT PRICE.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S UNDATED STATEMENT, ARE RETURNED.