B-131519, APR. 24, 1957

B-131519: Apr 24, 1957

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED APRIL 15. OFFERED FOR SALE CERTAIN SURPLUS PROPERTY AMONG WHICH WAS ITEM NO. 134 DESCRIBED IN THE INVITATION AS FOLLOWS: TABLE "RADIO EQUIPMENT. WAS AWARDED ACCORDINGLY. IT IS REPORTED THAT UPON RECEIPT OF THE NOTICE OF AWARD. IT IS REPORTED FURTHER THAN UPON CHECKING ITEM NO. 134 IT WAS DISCOVERED THAT THE ONLY CARTON OPEN FOR DISPLAY AND INSPECTION CONTAINED CORD CD930 WHICH WEIGHED APPROXIMATELY 40 POUNDS EACH. THAT THE OTHER CARTONS WERE CHECKED AND IT WAS DISCOVERED THAT ITEM NO. 134 ACTUALLY CONSISTED OF THE FOLLOWING: TABLE QUANTITY ITEM UNIT A/C TOTAL WEIGHT 19 EA. THE CONTRACTING OFFICER FAILED TO PHYSICALLY CHECK ITEM NO. 134 TO DETERMINE IF THE PROPERTY WAS PROPERLY DESCRIBED ON THE INVITATION TO BID.

B-131519, APR. 24, 1957

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED APRIL 15, 1957, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), REQUESTING A DECISION AS TO WHETHER THE FRANKLIN ELECTRIC COMPANY OF PHILADELPHIA, PENNSYLVANIA, MAY BE RELIEVED FROM THE TERMS OF CONTRACT O.I. NO. 3092 ON THE GROUNDS OF AN ALLEGED MISTAKE IN BID.

THE RECORD SHOWS THAT BY INVITATION NO. 09-030-A-57-B, THE PROPERTY DISPOSAL OFFICER, ATLANTA GENERAL DEPOT, U.S. ARMY, FOREST PARK, GEORGIA, OFFERED FOR SALE CERTAIN SURPLUS PROPERTY AMONG WHICH WAS ITEM NO. 134 DESCRIBED IN THE INVITATION AS FOLLOWS:

TABLE

"RADIO EQUIPMENT, CONSISTING OF CORD,

CD930, 3E59A.1 576 EA INDICATE BID

* COND - UNUSED IN UNIT OF EACH

* ETAC - $1,613.18 (C)

* ETW - 930 LBS

* SCL-D-SF-P-1311-18 "

IN RESPONSE TO THE INVITATION, THE FRANKLIN ELECTRIC COMPANY SUBMITTED A UNIT PRICE BID OF $3.33, OR FOR A TOTAL OF $1,918.08, AND BEING THE HIGHEST BID RECEIVED, CONTRACT O.I. NO. 3092, DATED DECEMBER 19, 1956, WAS AWARDED ACCORDINGLY. IT IS REPORTED THAT UPON RECEIPT OF THE NOTICE OF AWARD, MR. ADAMS OF THE FRANKLIN ELECTRIC COMPANY TELEPHONED THE PROPERTY DISPOSAL OFFICER TO VERIFY THE WEIGHT OF THE PROPERTY, IT BEING STATED BY MR. ADAMS THAT THE ITEM INSPECTED BY HIM WEIGHED APPROXIMATELY 35 POUNDS EACH, WHICH WOULD RESULT IN AN APPROXIMATE WEIGHT OF 20,000 POUNDS FOR THE 576 ITEMS LISTED ON THE AWARD, INSTEAD OF A TOTAL OF 930 POUNDS AS SHOWN IN THE INVITATION TO BID.

IT IS REPORTED FURTHER THAN UPON CHECKING ITEM NO. 134 IT WAS DISCOVERED THAT THE ONLY CARTON OPEN FOR DISPLAY AND INSPECTION CONTAINED CORD CD930 WHICH WEIGHED APPROXIMATELY 40 POUNDS EACH, AND THAT THE OTHER CARTONS WERE CHECKED AND IT WAS DISCOVERED THAT ITEM NO. 134 ACTUALLY CONSISTED OF THE FOLLOWING:

TABLE

QUANTITY ITEM UNIT A/C TOTAL WEIGHT

19 EA. CORD, CD 930 $46.45 760 LBS.

547 EA. CORD, STOCK NO. .69 150 LBS.

5995-1647918

10 EA. CORD, STOCK NO.

5995-1626395 35.32 21 LBS.

AT THE TIME OF THE BID OPENING OF THE SALE, THE CONTRACTING OFFICER OBSERVED THAT THE PRICE SUBMITTED BY THE FRANKLIN ELECTRIC COMPANY EXCEEDED THE ACQUISITION COST SHOWN AND MADE THE AWARD ONLY AFTER VERIFYING THE FACT THAT THE PROPERTY HAD BEEN INSPECTED BY A REPRESENTATIVE OF THE BIDDER. HOWEVER, THE CONTRACTING OFFICER FAILED TO PHYSICALLY CHECK ITEM NO. 134 TO DETERMINE IF THE PROPERTY WAS PROPERLY DESCRIBED ON THE INVITATION TO BID. THE COMMANDING OFFICER OF THE ATLANTA GENERAL DEPOT REQUESTS THAT THE CONTRACTING OFFICER BE GRANTED AUTHORITY TO CANCEL THE CONTRACT IN THIS CASE, SUCH REQUEST BEING BASED UPON THE FACT THAT THERE WAS AN ERRONEOUS DESCRIPTION OF THE PROPERTY IN THE INVITATION TO BID WHEN CORRECT INFORMATION DESCRIBING THE PROPERTY WAS AVAILABLE.

UNDER THE FACTS REPORTED, IT SEEMS CLEAR THAT THE DESCRIPTION OF THE PROPERTY IN THIS CASE WAS NOT "BASED UPON THE BEST AVAILABLE INFORMATION" AS STATED IN THE INVITATION. IN VIEW THEREOF AND OF THE FACT THAT THE BID OF THE FRANKLIN ELECTRIC COMPANY WAS IN EXCESS OF THE ACQUISITION COST, IT IS CONCLUDED THAT THE CONTRACT HEREIN SHOULD BE CANCELLED.

THE PAPERS TRANSMITTED WITH THE LETTER OF APRIL 15, 1957, ARE RETURNED HEREWITH.