B-131287, APR. 11, 1957

B-131287: Apr 11, 1957

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TO GLOBE OFFICE SUPPLY CO.: REFERENCE IS MADE TO YOUR LETTER DATED MARCH 12. THE PRICES QUOTED BY THE THREE OTHER BIDDERS WERE $18.20. YOU ALLEGE THAT YOUR COST IS $19.20 PER THOUSAND AND THAT THE "NORMAL" SELLING PRICE IS $23.50 PER THOUSAND. YOU URGE THAT THE ERROR IN YOUR BID WAS APPARENT TO THE CONTRACTING OFFICER BECAUSE OF THE DISPARITY BETWEEN YOUR BID AND THE OTHER BIDS AND THE ALLEGED "NORMAL" MARKET PRICE. THE ADMINISTRATIVE OFFICE REPORTED THAT THE VARIATIONS IN BIDS WERE NOT SUCH AS TO PUT THE CONTRACTING OFFICER ON NOTICE OF THE POSSIBILITY OF A MISTAKE PRIOR TO THE AWARD OF THE CONTRACT. THERE IS NOTHING IN THE RECORD TO SHOW THAT THE CONTRACTING OFFICER WAS AWARE OF THE NORMAL MARKET PRICE.

B-131287, APR. 11, 1957

TO GLOBE OFFICE SUPPLY CO.:

REFERENCE IS MADE TO YOUR LETTER DATED MARCH 12, 1957, REQUESTING RECONSIDERATION OF SETTLEMENT DATED MARCH 8, 1957, WHICH DISALLOWED YOUR CLAIM FOR AN ADDITIONAL $67 ALLEGED TO BE DUE ON ACCOUNT OF AN ERROR IN BID ON TAGS FURNISHED THE DEPARTMENT OF THE NAVY UNDER CONTRACT N220/62649/99410A, DATED JUNE 6, 1956.

IN RESPONSE TO INVITATION NO. IFB-220-15614-56-P3, DATED MAY 22, 1956, YOU SUBMITTED A BID IN THE AMOUNT OF $12.50 PER THOUSAND TO FURNISH 10,000 TAGS. THE PRICES QUOTED BY THE THREE OTHER BIDDERS WERE $18.20, $26.66 AND $30.61 PER THOUSAND. YOU ALLEGE THAT YOUR COST IS $19.20 PER THOUSAND AND THAT THE "NORMAL" SELLING PRICE IS $23.50 PER THOUSAND.

YOU URGE THAT THE ERROR IN YOUR BID WAS APPARENT TO THE CONTRACTING OFFICER BECAUSE OF THE DISPARITY BETWEEN YOUR BID AND THE OTHER BIDS AND THE ALLEGED "NORMAL" MARKET PRICE.

THE ADMINISTRATIVE OFFICE REPORTED THAT THE VARIATIONS IN BIDS WERE NOT SUCH AS TO PUT THE CONTRACTING OFFICER ON NOTICE OF THE POSSIBILITY OF A MISTAKE PRIOR TO THE AWARD OF THE CONTRACT, AND WE CONCUR IN THAT VIEW.

THERE IS NOTHING IN THE RECORD TO SHOW THAT THE CONTRACTING OFFICER WAS AWARE OF THE NORMAL MARKET PRICE, BUT EVEN THOUGH HE MIGHT HAVE BEEN AWARE OF SUCH A PRICE, THAT CIRCUMSTANCE WOULD NOT NECESSARILY PLACE HIM ON NOTICE OF THE PROBABILITY OF ERROR IN YOUR BID, SINCE THERE IS NOTHING UNUSUAL IN A PROPOSAL TO SELL AN ARTICLE BELOW THE NORMAL MARKET PRICE.