B-130869, MAR. 18, 1957

B-130869: Mar 18, 1957

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED FEBRUARY 6. TO HAVE BEEN MADE IN ITS BID SUBMITTED PURSUANT TO INVITATION FOR BIDS NO. THE BID WAS ACCEPTED AS TO ITEMS NOS. 7. THE REQUEST WAS MODIFIED SO AS TO SEEK CANCELLATION ONLY AS TO ITEMS NOS. 7. IT WAS STATED. THE BID WAS SUBMITTED BY A SALESMAN NOT FAMILIAR WITH GOVERNMENT BIDS AND NOT KNOWING THE MEANING OF CERTAIN LETTERS IN THE INVITATION. THE CONTRACTOR STATED THE AMOUNTS WHICH SHOULD HAVE BEEN BID ON THE ITEMS IN QUESTION AS HEREINAFTER SET OUT. STATED THAT THE BIDS ACTUALLY SUBMITTED ON FIVE OF THE ITEMS WERE BASED ON ALUMINUM UTENSILS INSTEAD OF STAINLESS STEEL. THOSE SUBMITTED ON ITEMS NOS. 22 AND 28 WERE BASED ON SMALLER UTENSILS THAN REQUIRED BY THE INVITATION.

B-130869, MAR. 18, 1957

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED FEBRUARY 6, 1957, FROM THE ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), WITH ENCLOSURES, RELATIVE TO ERRORS ALLEGED BY W. F. DOUGHERTY AND SONS, INC., TO HAVE BEEN MADE IN ITS BID SUBMITTED PURSUANT TO INVITATION FOR BIDS NO. DA 15-056-57 9, ISSUED JULY 24, 1956, BY THE PURCHASING AND CONTRACTING BRANCH, FORT CAMPBELL, KENTUCKY, FOR THE PURCHASE OF 49 ITEMS OF MESS HALL EQUIPMENT. THE BID WAS ACCEPTED AS TO ITEMS NOS. 7, 8, 12, 13, 14, 15, 20, 22, 23, 26, 28 AND 33, TOTALING $2,421.85 (UNNUMBERED CONTRACT, ORDER NO. O.I. 57-28-QM, DATED AUGUST 13, 1956).

BY LETTER DATED AUGUST 27, 1956, THE CONTRACTOR REQUESTED CANCELLATION OF THE AWARD, ALLEGING ERRORS IN ITS BID. BY LETTER OF SEPTEMBER 4, 1956, THE REQUEST WAS MODIFIED SO AS TO SEEK CANCELLATION ONLY AS TO ITEMS NOS. 7, 8, 14, 15, 22, 28 AND 33. IT WAS STATED, IN EFFECT, THAT ERRORS IN THE BID RESULTED FROM THE FACT THAT, IN THE ABSENCE OF THE OFFICIAL WHO ORDINARILY PREPARED BIDS, THE BID WAS SUBMITTED BY A SALESMAN NOT FAMILIAR WITH GOVERNMENT BIDS AND NOT KNOWING THE MEANING OF CERTAIN LETTERS IN THE INVITATION. IN THE LETTER OF SEPTEMBER 4, 1956, THE CONTRACTOR STATED THE AMOUNTS WHICH SHOULD HAVE BEEN BID ON THE ITEMS IN QUESTION AS HEREINAFTER SET OUT, AND STATED THAT THE BIDS ACTUALLY SUBMITTED ON FIVE OF THE ITEMS WERE BASED ON ALUMINUM UTENSILS INSTEAD OF STAINLESS STEEL, AND THOSE SUBMITTED ON ITEMS NOS. 22 AND 28 WERE BASED ON SMALLER UTENSILS THAN REQUIRED BY THE INVITATION. WORKSHEETS FURNISHED APPEAR TO SUPPORT THE ALLEGATIONS OF ERROR. THE CONTRACTOR HAS FURNISHED, ALSO, PRICE LISTS OF VARIOUS MANUFACTURERS OF UTENSILS IN SUPPORT OF ITS CONTENTIONS.

BIDS WERE RECEIVED ON THE SAID ITEMS AS FOLLOWS:

TABLE ITEM NO. 7 8 14 15 22 28 33 DOUGHERTY BIDS $ 7.45 $ 3.82 $ 1.40 $ 6.95 $ .75 $ 2.60 $ .17OTHER BIDS 7.95 4.69 2.89 14.85

.85 4.40 .19

DO. DO. 8.68 5.45 4.45 15.29 3.45 7.91 .44

DO. DO. 9.21 6.49 4.74 17.45 3.81 7.99 .44

DO. DO. 9.79 25.63 5.94 21.45 3.99 8.13 .49

DO. DO. 10.99 26.39 6.21 3.99 8.25 .65

DO. DO. 11.85 4.03 8.44 .95

DO.DO. 12.95 4.45 10.50

THE FILE CONTAINS THE FOLLOWING PERTINENT CHART:

TABLE

ANALYSIS OF PRICES FOR ITEMS FOR WHICH W. E. DOUGHERTY AND SONS

HAVE REQUESTED CANCELLATION--- IFB DA 15-056-57-9

DOUGHERTY PRICE CLOSEST PRICE ON GOVT. PRICE OF AWARD

ORIG. BID CLAIM IFB-15-056-57-9 ESTIMATE ON ITEM

IFB-15-056-57-19

7 $7.45 $17.30 $ 7.95 $ 9.10 $ 7.87

8 3.82 31.40 4.69 6.00 4.39

14 1.40 9.75 2.89 4.95

15 6.95 25.60 14.85 12.45 14.85

22 .75 4.76 .85 2.00 .75

28 2.60 10.50 4.40 6.00

33 .17 .55 .19 .75 .21

IN VIEW OF THE FACTS OF THIS MATTER AS REPORTED AND SHOWN BY THE FILE, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT W. F. DOUGHERTYAND SONS, INC., MADE BONA FIDE ERRORS IN ITS BID AS ALLEGED AND EXPLAINED BY IT. ALSO, BECAUSE OF THE DISPARITY BETWEEN ITS BIDS ON ITEMS NOS. 14, 15, 22, 28 AND 33 AND THE OTHER BIDS RECEIVED ON THOSE ITEMS AND ALSO BECAUSE OF THE DISPARITY BETWEEN ITS BIDS AND THE GOVERNMENT ESTIMATES, IT IS CONCLUDED THAT THE CONTRACTING OFFICER SHOULD HAVE REQUESTED VERIFICATION OF THE BIDS ON THESE ITEMS BEFORE MAKING THE AWARD. ACCORDINGLY, THE CONTRACTOR MAY BE RELIEVED OF THE AWARD AS TO ITEMS NOS. 14, 15, 22, 28 AND 33. THE DISPARITY AS TO ITEMS NOS. 7 AND 8 IS NOT DEEMED SUFFICIENT TO JUSTIFY RELIEF AS TO THOSE ITEMS.