B-134078, NOV. 15, 1957

B-134078: Nov 15, 1957

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TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO LETTER DATED OCTOBER 11. IT APPEARS THAT THE SCRAP INCLUDED UNDER THE VARIOUS ITEMS WAS WELL-SEPARATED AS TO THE TYPE OF METAL INVOLVED. AMONG THE ITEMS IT BID UPON WERE ITEMS 3 AND 12. WERE ACCEPTED ON JULY 24. OUR QUOTATION ON ITEM 11 WAS POSTED UNDER ITEM 12" AND REQUESTED THAT ITS BID BE CORRECTED ACCORDINGLY. THAT THE NEXT HIGHEST BID RECEIVED ON ITEM 12 OF $0.0221 PER POUND IS IN LINE WITH THE TRUE VALUE OF THE MATERIAL WHICH CONSISTS . " AND THAT THE HIGHEST BID ON ITEM 11 WAS $0.12701 PER POUND AND IN LINE WITH ITS INTENDED BID PRICE OF $0.12761. THE RECORD SHOWS THAT THE TWO OTHER BIDS RECEIVED ON ITEM 12 WERE IN THE AMOUNTS OF $0.0221 AND $0.0211 PER POUND WHICH ARE IN LINE WITH THE UNDISPUTED MARKET VALUE OF $0.035 PER POUND.

B-134078, NOV. 15, 1957

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO LETTER DATED OCTOBER 11, 1957, FROM THE DEPUTY ASSISTANT SECRETARY, REQUESTING A DECISION AS TO WHETHER KOPELOVE IRON AND METAL COMPANY, DAYTON, OHIO, MAY BE GRANTED RELIEF IN CONNECTION WITH ITEM 12 OF CONTRACT NO. AF 09 (603) S-326, DATED JULY 24, 1957.

ROBINS AIR FORCE BASE, GEORGIA, BY INVITATION FOR BIDS NO. 09-603-S 57- 78, REQUESTED BIDS TO BE OPENED ON JULY 22, 1957, FOR THE SALE OF SEVERAL ITEMS OF GOVERNMENT-OWNED SURPLUS PROPERTY CONSISTING OF SCRAP FERROUS AND NONFERROUS METALS AND MISCELLANEOUS SCRAP. IT APPEARS THAT THE SCRAP INCLUDED UNDER THE VARIOUS ITEMS WAS WELL-SEPARATED AS TO THE TYPE OF METAL INVOLVED. ITEM 11 CONSISTED OF APPROXIMATELY 50,000 POUNDS OF STEEL SCRAP DESCRIBED AS "HIGH TEMPERATURE ALLEY, CONSISTING OF JET AIRCRAFT TAILPIPE AND BLANKET ASSEMBLIES (MILITARY CHARACTERISTICS TRALIZED).' ITEM 12 CONSISTED OF APPROXIMATELY 40,000 POUNDS OF STEEL SCRAP DESCRIBED AS "HIGH TEMPERATURE ALLOY, CONSISTING OF AIRCRAFT ENGINE PARTS; INCLUDING RODS, SHAFTS, GEARS, ETC.'

IN RESPONSE TO THE INVITATION KOPELOVE IRON AND METAL COMPANY SUBMITTED A BID OFFERING TO PURCHASE VARIOUS OF THE ITEMS FOR THE PRICES SET FORTH THEREIN. AMONG THE ITEMS IT BID UPON WERE ITEMS 3 AND 12, BUT IT SUBMITTED NO BID ON ITEM 11. THE BIDS ON ITEMS 3 AND 12 BEING THE HIGHEST RECEIVED, WERE ACCEPTED ON JULY 24, 1957, BY CONTRACT NO. AF 09 (603) S- 326.

KOPELOVE IRON AND METAL COMPANY, BY LETTER DATED JULY 23, 1957, RECEIVED BY THE CONTRACTING OFFICE ON JULY 25, ADVISED THAT "THROUGH A CLERICAL ERROR IN OUR OFFICE, OUR QUOTATION ON ITEM 11 WAS POSTED UNDER ITEM 12" AND REQUESTED THAT ITS BID BE CORRECTED ACCORDINGLY. IN A LETTER DATED JULY 30, THE BIDDER STATED, IN SUPPORT OF THE ALLEGED ERROR, THAT THE NEXT HIGHEST BID RECEIVED ON ITEM 12 OF $0.0221 PER POUND IS IN LINE WITH THE TRUE VALUE OF THE MATERIAL WHICH CONSISTS ,APPROXIMATELY OF 4340 ALLOYED STEEL WITH A MARKET VALUE OF ABOUT $0.035 PER LB. DELIVERED; " AND THAT THE HIGHEST BID ON ITEM 11 WAS $0.12701 PER POUND AND IN LINE WITH ITS INTENDED BID PRICE OF $0.12761.

THE RECORD SHOWS THAT THE TWO OTHER BIDS RECEIVED ON ITEM 12 WERE IN THE AMOUNTS OF $0.0221 AND $0.0211 PER POUND WHICH ARE IN LINE WITH THE UNDISPUTED MARKET VALUE OF $0.035 PER POUND, DELIVERED, FOR THE TYPE OF SCRAP OFFERED. THE FIVE HIGHEST BIDS RECEIVED ON ITEM 11 WERE $0.12701, $0.11086, $0.10317, $0.1010 AND $0.1007. THUS, THE PRICE OF $0.12761 PER POUND, QUOTED BY KOPELOVE IRON AND METAL COMPANY ON ITEM 12 IS ENTIRELY OUT OF LINE WITH THE OTHER BIDS RECEIVED ON THAT ITEM, WHEREAS IT IS IN LINE WITH THE OTHER BIDS RECEIVED ON ITEM 11.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO DOUBT THAT AN ERROR WAS MADE IN THE BID AS ALLEGED. FURTHERMORE, IT WOULD APPEAR THAT THE CIRCUMSTANCES WERE SUCH THAT THE CONTRACTING OFFICER IS CHARGEABLE WITH CONSTRUCTIVE NOTICE OF THE POSSIBILITY OF ERROR. ACCORDINGLY, A SUPPLEMENTAL AGREEMENT TO CONTRACT NO. AF 09 (603) S-326, MAY BE EXECUTED, RELIEVING THE CONTRACTOR FROM ANY OBLIGATION TO PURCHASE ITEM 12 AS RECOMMENDED BY THE CONTRACTING OFFICER AND THE DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE.