B-132112, JUL. 9, 1957

B-132112: Jul 9, 1957

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED JUNE 6. N665S-32656 WAS AWARDED. WAS ACCEPTED ON MARCH 28. THE COMPANY ADVISED THE CONTRACTING OFFICER THAT THROUGH ERROR THE SECOND BID WAS MADE AND REQUESTED CANCELLATION OF THE CONTRACT. SIX OTHER BIDS WERE RECEIVED. THE LOWEST WAS $0.0009 AND THE NEXT HIGHEST WAS $0.03821 PER POUND. THE POSSIBILITY OF ERROR WAS APPARENT AND. THE BID AS TO ITEM NO. 6 SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID. SINCE IT APPEARS THAT THE PROPERTY IS STILL IN THE POSSESSION OF THE GOVERNMENT. ARE RETURNED.

B-132112, JUL. 9, 1957

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED JUNE 6, 1957, WITH ENCLOSURES, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING A MISTAKE AUTOMOTIVE TIRE SERVICE, INC., ALLEGES IT MADE IN SUBMITTING ITS BID ON WHICH CONTRACT NO. N665S-32656 WAS AWARDED.

BY INVITATION NO. B-159-57-665, DATED MARCH 5, 1957, THE NAVAL SUPPLY DEPOT CLEAR FIELD, DISPOSAL DIVISION, OGDEN, UTAH, REQUESTED BIDS--- TO OPENED MARCH 26, 1957--- FOR THE PURCHASE FROM THE GOVERNMENT OF VARIOUS ITEMS OF SCRAP METAL AND RUBBER. IN RESPONSE TO THE INVITATION, AUTOMOTIVE TIRE SERVICE, INC., SUBMITTED TWO SEPARATE UNDATED BIDS ON ITEM NO. 6 FOR THE PURCHASE OF 26,880 POUNDS OF SCRAP RUBBER--- ONE OF $0.0036 PER POUND, OR A TOTAL OF $96.77 ACCOMPANIED BY A BID DEPOSIT OF $20 (CHECK DATED MARCH 12, 1957), AND A LATER BID OF $0.0716 PER POUND, OR A TOTAL OF $1,924.60, ACCOMPANIED BY A BID DEPOSIT OF $400 (CHECK DATED MARCH 22, 1957). THE SECOND AND LARGER BID, BEING THE HIGHEST BID RECEIVED ON ITEM NO. 6, WAS ACCEPTED ON MARCH 28, 1957.

BY LETTER OF APRIL 3, 1957, CONFIRMING PRIOR TELEPHONE CONVERSATIONS MADE AFTER THE AWARD OF THE CONTRACT, THE COMPANY ADVISED THE CONTRACTING OFFICER THAT THROUGH ERROR THE SECOND BID WAS MADE AND REQUESTED CANCELLATION OF THE CONTRACT.

SIX OTHER BIDS WERE RECEIVED, THE LOWEST WAS $0.0009 AND THE NEXT HIGHEST WAS $0.03821 PER POUND. IN VIEW OF THE DIFFERENCE BETWEEN THE COMPANY'S BIDS OF $0.0036 AND $0.0716 PER POUND AND THE OTHER BIDS ON ITEM NO. 6, THE POSSIBILITY OF ERROR WAS APPARENT AND, IN THE CIRCUMSTANCES, THE BID AS TO ITEM NO. 6 SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID.

ACCORDINGLY, AND SINCE IT APPEARS THAT THE PROPERTY IS STILL IN THE POSSESSION OF THE GOVERNMENT, THE CONTRACT SHOULD BE CANCELLED WITHOUT LIABILITY TO THE COMPANY AND REFUND OF ITS BID DEPOSIT MAY BE MADE.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT OF APRIL 26, 1957, ARE RETURNED.