B-133870, OCT. 1, 1957

B-133870: Oct 1, 1957

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO LETTER OF SEPTEMBER 23. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR MCCORD CORPORATION ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER BA-1721 57-FS IS BASED. AWARD WAS MADE TO THE COMPANY ON AUGUST 15. IS LISTED AT $115.75 FACTORY RETAIL PRICE AND $69.45 NET. THE OTHER TWO BIDS RECEIVED ON ITEM 11 WERE $83.34 AND $98.39. SHE SHOULD HAVE BEEN ON CONSTRUCTIVE NOTICE OF ERROR AND SHOULD NOT HAVE ACCEPTED THE BID WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID. OUR OFFICE IS IN ACCORD WITH THIS STATEMENT. ARE RETURNED.

B-133870, OCT. 1, 1957

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER OF SEPTEMBER 23, 1957, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR MCCORD CORPORATION ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER BA-1721 57-FS IS BASED.

BY INVITATION NO. ORD-04-015-57-49, DATED JULY 26, 1956, BENICIA ARSENAL, BENICIA, CALIFORNIA, REQUESTED BIDS--- TO BE OPENED AUGUST 7, 1956, FOR FURNISHING CERTAIN AUTOMOBILE PARTS. MCCORD CORPORATION SUBMITTED A BID OFFERING TO FURNISH ITEM 11, 37 CORES FOR $27.77 EACH. AWARD WAS MADE TO THE COMPANY ON AUGUST 15, 1956, FOR THE FURNISHING OF ITEM 11. BY LETTER OF AUGUST 27, 1956, THE COMPANY NOTIFIED THE ADMINISTRATIVE OFFICE THAT IT HAD INADVERTENTLY BID ON JUST THE CORE OR COOLING SECTION AND THAT THE PART NUMBER SHOWN ON THE INVITATION COVERS THE COMPLETE UNIT INCLUDING TANKS, CHANNELS, ETC., AND REQUESTED CANCELLATION OF THE PURCHASE ORDER. THE COMPANY SUBMITTED ITS RADIATOR CORE GUIDE AND ITS WHOLESALE PRICE LIST OF JULY 1956, WHICH INDICATES THAT THE COMPANY BID ON A RADIATOR CORE FOR A ONE AND ONE HALF TON DODGE TRUCK HAVING A LIST PRICE OF $61.70 AND A JOBBER'S NET PRICE OF $27.77, THE AMOUNT OF THE COMPANY'S BID. THE PART NUMBER SHOWN ON THE INVITATION CALLS FOR A RADIATORY ASSEMBLY WHICH, ACCORDING TO MOPAR (A CHRYSLER AFFILIATE), IS LISTED AT $115.75 FACTORY RETAIL PRICE AND $69.45 NET, THE PRICE SUBMITTED BY THE SECOND LOW BIDDER. THE OTHER TWO BIDS RECEIVED ON ITEM 11 WERE $83.34 AND $98.39.

THE CONTRACTING OFFICER STATES THAT, BASED ON THE WIDE DIFFERENTIAL IN PRICE BETWEEN THE LOW BID AND THE OTHER BIDS RECEIVED, SHE SHOULD HAVE BEEN ON CONSTRUCTIVE NOTICE OF ERROR AND SHOULD NOT HAVE ACCEPTED THE BID WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID. OUR OFFICE IS IN ACCORD WITH THIS STATEMENT.

ACCORDINGLY, THE PURCHASE ORDER SHOULD BE CANCELLED WITHOUT LIABILITY TO THE COMPANY.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT OF JUNE 21, 1957, ARE RETURNED.