B-133620, SEP. 18, 1957

B-133620: Sep 18, 1957

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FEDERAL COMMUNICATIONS COMMISSION: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 28. ALLEGES WAS MADE IN ITS BID ON WHICH CONTRACT NO. RC-9592 IS BASED. THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEM 1 ON JUNE 19. THE CORPORATION ADVISED THAT A TYPOGRAPHICAL ERROR HAD BEEN MADE IN ITS BID IN LISTING THE PRICE FOR ITEM 1 AND THAT THE PRICE FOR THAT ITEM SHOULD HAVE BEEN SHOWN AS BEING $2. WHERE ONLY ONE BID IS RECEIVED ON AN ITEM. - THERE IS NO BASIS FOR COMPARISON OF BIDS. THERE IS NOTHING TO PLACE THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF ERROR IN THE BID. THAT NO OTHER ITEMS WERE AWARDED TO THE CORPORATION ON WHICH IT COULD RECOUP ITS LOSS. 000 IN THE CONTRACT PRICE OF THE TUNING UNIT AUTHORIZED HEREIN MAY BE CHARGED TO THE APPROPRIATION CURRENT AT THE TIME THE OBLIGATION FOR THE LOWER PRICE WAS MADE.

B-133620, SEP. 18, 1957

TO HONORABLE ROBERT E. LEE, ACTING CHAIRMAN, FEDERAL COMMUNICATIONS COMMISSION:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 28, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE POLARAD ELECTRONICS CORPORATION, LONG ISLAND CITY, NEW YORK, ALLEGES WAS MADE IN ITS BID ON WHICH CONTRACT NO. RC-9592 IS BASED.

THE FEDERAL COMMUNICATIONS COMMISSION, LABORATORY DIVISION, LAUREL, MARYLAND, BY INVITATION DATED MARCH 29, 1957, REQUESTED BIDS--- TO BE OPENED APRIL 12, 1957--- FOR FURNISHING F.O.B. DESTINATION, AMONG OTHER ITEMS, ONE TUNING UNIT, R.F. FOR POLARAD MODEL R RECEIVER, 14,700 TO 22,000 MEGACYCLES, POLARAD MODEL RKU-T OR ELECTRICAL AND MECHANICAL EQUIVALENT, ITEM 1. IN RESPONSE THE POLARAD ELECTRONICS CORPORATION SUBMITTED A BID DATED APRIL 5, 1957, OFFERING TO FURNISH, AMONG OTHER ITEMS, THE TUNING UNIT COVERED BY ITEM 1 AT A PRICE OF $1,503.43 EACH. THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEM 1 ON JUNE 19, 1957.

BY LETER DATED JUNE 25, 1957, THE CORPORATION ADVISED THAT A TYPOGRAPHICAL ERROR HAD BEEN MADE IN ITS BID IN LISTING THE PRICE FOR ITEM 1 AND THAT THE PRICE FOR THAT ITEM SHOULD HAVE BEEN SHOWN AS BEING $2,503.43 INSTEAD OF $1,503.43. THE CORPORATION REQUESTED THAT ITS BID ON ITEM 1 BE CORRECTED ACCORDINGLY OR THAT THE CONTRACT BE CANCELED. SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED ITS PRINTED PRICE LIST WHICH SPECIFIES A UNIT PRICE OF $2,500 F.O.B. ORIGIN, FOR A POLARAD MODEL RKU-T (14,700-22,000 MC) TUNING UNIT TO BE USED WITH A MODEL R. MICROWAVE FIELD INTENSITY RECEIVER.

ORDINARILY, WHERE ONLY ONE BID IS RECEIVED ON AN ITEM--- AS IN THE PRESENT CASE--- THERE IS NO BASIS FOR COMPARISON OF BIDS; HENCE, THERE IS NOTHING TO PLACE THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF ERROR IN THE BID. SEE 17 COMP. GEN. 560; AND 26 ID. 415. HOWEVER, IN THE PRESENT CASE, IT APPEARS FROM THE FACTS AND EVIDENCE OF RECORD THAT THE CORPORATION MADE A BONA FIDE ERROR IN QUOTING ON THE TUNING UNIT COVERED IN ITEM 1, AND THAT NO OTHER ITEMS WERE AWARDED TO THE CORPORATION ON WHICH IT COULD RECOUP ITS LOSS. UNDER THE CIRCUMSTANCES, IT WOULD BE INEQUITABLE TO REQUIRE THE CORPORATION TO FURNISH THE TUNING UNIT AT ITS BID PRICE.

ACCORDINGLY, SINCE THE CORPORATION APPEARS TO BE THE SOLE SOURCE OF SUPPLY FOR THE REQUIRED ITEM, CONTRACT NO. RC-9592 MAY BE AMENDED TO PROVIDE FOR A UNIT PRICE OF $2,503.43 FOR ITEM 1.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE AMENDMENT TO BE ATTACHED TO THE CONTRACT.

IN REGARD TO THE QUESTION AS TO WHETHER THE INCREASE OF $1,000 IN THE CONTRACT PRICE OF THE TUNING UNIT AUTHORIZED HEREIN MAY BE CHARGED TO THE APPROPRIATION CURRENT AT THE TIME THE OBLIGATION FOR THE LOWER PRICE WAS MADE, YOU ARE ADVISED THAT INASMUCH AS THE CONTRACT WAS EXECUTED IN JUNE 1957 AND SINCE THE PROPOSED INCREASE IN PRICE MERELY CORRECTS THE AMOUNT PROPERLY DUE UNDER THE CONTRACT, THE APPROPRIATION FOR THE FISCAL YEAR ENDING JUNE 30, 1957, PROPERLY MAY BE CHARGED WITH THE AMOUNT OF SUCH INCREASE.