B-130264, JAN. 31, 1957

B-130264: Jan 31, 1957

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO 1ST INDORSEMENT DATED JANUARY 4. REQUESTING A DECISION AS TO THE APPROPRIATE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID OF FREDERICK R. AF 19/617/-57 WAS AWARDED. SINCE THE MATTER INVOLVES A DECISION AS TO WHETHER THE CONTRACT MAY BE CANCELLED IT IS BEING RENDERED TO YOU. WHICH WAS ISSUED BY THE WESTOVER AIR FORCE BASE ON AUGUST 2. THE TOTAL PURCHASE PRICE WAS EXTENDED ON THE BID FORM IN THE AMOUNT OF $25. THE BID WAS ACCEPTED ON AUGUST 30. THE ABSTRACT OF BIDS DISCLOSES THAT FIVE OTHER BIDS WERE RECEIVED FOR ITEM NO. 7 WHICH RANGED FROM $0.0228 TO $0.0117 A POUND. RANDALL'S UNIT PRICE BID FOR ITEM NO. 7 WAS SHOWN AS $0.05 A POUND.

B-130264, JAN. 31, 1957

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO 1ST INDORSEMENT DATED JANUARY 4, 1957, WITH ENCLOSURES, FROM HEADQUARTERS, AMC, WRIGHT-PATTERSON AIR FORCE BASE, REQUESTING A DECISION AS TO THE APPROPRIATE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID OF FREDERICK R. RANDALL ON WHICH CONTRACT NO. AF 19/617/-57 WAS AWARDED.

SINCE THE MATTER INVOLVES A DECISION AS TO WHETHER THE CONTRACT MAY BE CANCELLED IT IS BEING RENDERED TO YOU. SEE 26 COMP. GEN. 993.

IN RESPONSE TO AN INVITATION, WHICH WAS ISSUED BY THE WESTOVER AIR FORCE BASE ON AUGUST 2, 1956, FREDERICK R. RANDALL SUBMITTED A BID DATED AUGUST 27, 1956, OFFERING TO PURCHASE ITEM NO. 7, COVERING 5,000 POUNDS OF SCRAP RUBBER AT $0.05 A POUND. THE TOTAL PURCHASE PRICE WAS EXTENDED ON THE BID FORM IN THE AMOUNT OF $25. THE BID WAS ACCEPTED ON AUGUST 30, 1956, CONSUMMATING CONTRACT NO. AF 19/617/-57. BY LETTER DATED SEPTEMBER 5, 1956, MR. RANDALL ADVISED THE CONTRACTING OFFICER OF THE WESTOVER AIR FORCE BASE THAT AN ERROR HAD BEEN MADE IN HIS BID IN THAT THE MISPLACEMENT OF A DECIMAL POINT RESULTED IN A BID OF $0.05 A POUND INSTEAD OF THE INTENDED BID OF $0.005 A POUND. IN VIEW OF THIS MR. RANDALL ASKED THAT HE BE RELEASED FROM THE TERMS OF HIS BID.

THE ABSTRACT OF BIDS DISCLOSES THAT FIVE OTHER BIDS WERE RECEIVED FOR ITEM NO. 7 WHICH RANGED FROM $0.0228 TO $0.0117 A POUND. MOREOVER, WHILE MR. RANDALL'S UNIT PRICE BID FOR ITEM NO. 7 WAS SHOWN AS $0.05 A POUND, THE TOTAL BID FOR THE 5,000 POUNDS SPECIFIED WAS EXTENDED IN THE AMOUNT OF ONLY $25, AND MR. RANDALL APPARENTLY SUBMITTED A BID DEPOSIT OF ONLY $5, WHICH DID NOT MEET THE 20 PERCENT BID DEPOSIT REQUIREMENT BASED ON A UNIT PRICE OF $0.05 A POUND. IN VIEW OF THESE CONDITIONS--- PARTICULARLY THE LAST TWO--- WE BELIEVE THE CONTRACTING OFFICER SHOULD HAVE RECOGNIZED THE PROBABILITY OF AN ERROR IN THE BID OF MR. RANDALL ON ITEM NO. 7 AND, THEREFORE, HAVE OFFERED HIM THE OPPORTUNITY TO VERIFY HIS BID PRIOR TO THE ACCEPTANCE THEREOF.

ACCORDINGLY, SINCE THERE APPEARS NO DOUBT THAT AN ERROR WAS MADE IN THE BID OF FREDERICK R. RANDALL, AND THAT THE CONTRACTING OFFICER WAS CHARGEABLE WITH NOTICE THEREOF, CONTRACT NO. 19/617/-57 MAY BE CANCELLED WITHOUT ANY OBLIGATION UPON MR. RANDALL.

THE PAPERS, WITH THE EXCEPTION OF THE ORIGINAL OF THE 1ST INDORSEMENT DATED JANUARY 4, 1957, ARE RETURNED HEREWITH.