B-130311, FEB. 13, 1957

B-130311: Feb 13, 1957

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TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER OF JANUARY 7. THE DECISION IS BEING ADDRESSED TO YOU. THE UNIT PRICES WILL GOVERN.'. ITEM NO. 89 WAS DESCRIBED IN THE INVITATION AS FOLLOWS: "89. (SF- 575371) COST $676.40" THE NUMBER OF UNITS WAS DESIGNATED AS 545 AND THE UNIT OF MEASURE AS POUNDS. THE BID PRICE PER UNIT INDICATED BY ANTWERP WAS $2.47. THE TOTAL BID PRICE WAS EXTENDED AS $1. AWARD WAS MADE TO ANTWERP ON ITEM NO. 89 ON THE BASIS OF $2.47 PER POUND OF GROSS WEIGHT OR A TOTAL OF $1. ANTWERP ALLEGED THAN ITS BID WAS BASED ON NET WEIGHT AND ASKED TO BE PERMITTED TO WITHDRAW ITS BID AND FOR A RETURN OF ITS DEPOSIT. THE EXTENDED PRICE IN THE BID IS THE UNIT PRICE MULTIPLIED BY THE ESTIMATED NET WEIGHT.

B-130311, FEB. 13, 1957

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER OF JANUARY 7, 1957, FROM HEADQUARTERS, AIR MATERIEL COMMAND, MCPPJS-2, REQUESTING A DECISION AS TO THE DISPOSITION OF THE ALLEGATION OF ERROR IN BID MADE BY THE ANTWERP IRON AND METAL COMPANY ON ITEM NO. 89 OF INVITATION FOR BIDS 33-601-S-56-18 DATED JUNE 5, 1956.

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

THE INVITATION FOR BIDS COVERED THE SALE OF CERTAIN SURPLUS PROPERTY BY THE PROCUREMENT DIVISION, WRIGHT-PATTERSON AIR FORCE BASE, OHIO. PARAGRAPH 3 OF THE GENERAL SALE TERMS AND CONDITIONS STATED--- "IN CASE OF ERROR IN THE EXTENSION OF PRICES IN THE BID, THE UNIT PRICES WILL GOVERN.' ITEM NO. 89 WAS DESCRIBED IN THE INVITATION AS FOLLOWS:

"89. CODE 9650- MERCURY, CONTAMINATED WITH DIRT, GRADE 2, IN 445 EA. GLASS BOTTLES, APPROX. 1 LB. PER BOTTLE, PACKED IN CARDBOARD CONTAINERS, CONTAINER AND BOTTLE WT. INCLUDED. USED. APPROX. WT. 545 LBS. (SF- 575371) COST $676.40"

THE NUMBER OF UNITS WAS DESIGNATED AS 545 AND THE UNIT OF MEASURE AS POUNDS. THE BID PRICE PER UNIT INDICATED BY ANTWERP WAS $2.47, THE TOTAL BID PRICE WAS EXTENDED AS $1,009.15. AWARD WAS MADE TO ANTWERP ON ITEM NO. 89 ON THE BASIS OF $2.47 PER POUND OF GROSS WEIGHT OR A TOTAL OF $1,346.15. BY LETTER RECEIVED JULY 23, ANTWERP ALLEGED THAN ITS BID WAS BASED ON NET WEIGHT AND ASKED TO BE PERMITTED TO WITHDRAW ITS BID AND FOR A RETURN OF ITS DEPOSIT.

THE EXTENDED PRICE IN THE BID IS THE UNIT PRICE MULTIPLIED BY THE ESTIMATED NET WEIGHT, WHICH WOULD INDICATE THAT THE BIDDER INTENDED THAT HIS UNIT PRICE APPLY TO NET WEIGHT ONLY. IN ADDITION, THIS INTENT WAS SHOWN BY A NOTE DATED JULY 3, 1956, WHICH, IT APPEARS FROM DISPOSITION FORM OF AUGUST 20, 1956, SUBJECT: REPORT OF CIRCUMSTANCES, WAS ATTACHED TO THE FACE OF THE BID. THE NOTE READ:

"ON ITEM 89 I FIGURED THE NUMBER OF LBS. OFFERED AT 445 LBS.IF THERE IS MORE I WILL TAKE IT AT THE PRICE I BID OF $2.47 PER LB.'

IN THE CIRCUMSTANCES, WE BELIEVE IT SHOULD HAVE BEEN APPARENT TO THE CONTRACTING OFFICER THAT THE BID OF THE ANTWERP COMPANY ON ITEM NO. 89 WAS INTENDED TO BE $2.47 PER POUND NET. AS WE STATED IN A SIMILAR SITUATION IN B-124033, SEPTEMBER 9, 1955---

"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 WAS NOT FOR APPLICATION WHERE, AS HERE, THERE WAS SUCH AN OBVIOUS DIFFERENCE BETWEEN THE UNIT AND EXTENDED PRICES, WHICH COULD NOT HAVE RESULTED FROM A MERE MATHEMATICAL INACCURACY. COMP. GEN. 746. WE CONCLUDE THAT THIS WAS SUFFICIENT TO PUT THE CONTRACTING OFFICER ON NOTICE OF ERROR AND TO REQUIRE VERIFICATION OR EXPLANATION OF THE BID BEFORE IT COULD PROPERLY BE ACCEPTED.'

ACCORDINGLY, THE PURPORTED AWARD TO THE ANTWERP COMPANY FOR ITEM NO. 89 DID NOT EFFECT A VALID ..END :