B-134178, OCT. 30, 1957

B-134178: Oct 30, 1957

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TO THE SECRETARY OF THE ARMY: FORWARDED HEREWITH IS LETTER DATED SEPTEMBER 30. THE PROPOSAL ON ALL ITEMS WAS ACCEPTED ON JUNE 26. THE CONTRACTOR REQUESTS RELIEF IN CONNECTION WITH ITEM NO. 10-25 ON THE BASIS THAT THE PRICE QUOTED ($0.50) WAS INTENDED AS THE PRICE PER POUND RATHER THAN THE PRICE PER SPOOL OF 20 POUNDS. THE REQUEST FOR QUOTATIONS THERE INVOLVED WAS ON A PER POUND BASIS AND THE CONTRACTOR QUOTED 2.13 DEUTSCHE MARKS PER POUND. IT WOULD APPEAR THAT THE PRICE QUOTED ON THE ITEM WAS SUCH THAT VERIFICATION SHOULD HAVE BEEN REQUESTED PRIOR TO ITS ACCEPTANCE. IN THE CIRCUMSTANCES AND IF THE FACTS ARE AS APPEAR FROM THE PAPERS SUBMITTED BY THE CONTRACTOR. IF SUCH PRICE IS CONSIDERED FAIR AND REASONABLE.

B-134178, OCT. 30, 1957

TO THE SECRETARY OF THE ARMY:

FORWARDED HEREWITH IS LETTER DATED SEPTEMBER 30, 1957, WITH ENCLOSURES, FROM SCHULZ AND SOUARD, FRANKFURT/MAIN, GERMANY, REQUESTING RELIEF IN CONNECTION WITH CONTRACT NO. DA-91-508-EUC-229, DATED JUNE 26, 1957,WITH HEADQUARTERS, U.S. ARMY SIGNAL PROCUREMENT CENTER, FRANKFURT, GERMANY.

IT APPEARS FROM THE PAPERS SUBMITTED THAT UNDER DATE OF JUNE 14, 1957, SCHULZ AND SOUARD SUBMITTED A PROPOSAL TO HEADQUARTERS, U.S. ARMY SIGNAL PROCUREMENT CENTER, FRANKFURT, GERMANY, OFFERING TO FURNISH VARIOUS ITEMS FOR THE PRICES SET FORTH THEREIN. ITEM 10-25 COVERS 100 SPOOLS OF "YARN, MARLINE, TARRED HEMP, SIG C TYPE RP-2; 2 PLY, 220 FT PER LB, 20 LBS SPOOLS, AS PER ATTACHED MATERIAL DESCRIPTION. (STOCK NO. EQM 21-M-99-25 S/F 6Z6981).' SCHULZ AND SOUARD QUOTED A PRICE OF $0.50, UNITED STATES CURRENCY, PER SPOOL. THE PROPOSAL ON ALL ITEMS WAS ACCEPTED ON JUNE 26, 1957, BY CONTRACT NO. DA-91-508-EUC-229.

THE CONTRACTOR REQUESTS RELIEF IN CONNECTION WITH ITEM NO. 10-25 ON THE BASIS THAT THE PRICE QUOTED ($0.50) WAS INTENDED AS THE PRICE PER POUND RATHER THAN THE PRICE PER SPOOL OF 20 POUNDS. IN EXPLANATION AND SUPPORT OF THE ALLEGED ERROR, THE CONTRACTOR SUBMITTED A PRIOR CONTRACT, SC-91-508 -470, DATED APRIL 3, 1957, WITH THE SAME CONTRACTING AGENCY, COVERING 150 POUNDS OF THE SAME TYPE MATERIAL, IN SPOOLS OF 10 KILOGRAMS. THE REQUEST FOR QUOTATIONS THERE INVOLVED WAS ON A PER POUND BASIS AND THE CONTRACTOR QUOTED 2.13 DEUTSCHE MARKS PER POUND.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE WOULD APPEAR LITTLE DOUBT THAT SCHULZ AND SOUARD MADE AN ERROR IN ITS QUOTATION ON ITEM 10-25, AS ALLEGED. FURTHERMORE, IT WOULD APPEAR THAT THE PRICE QUOTED ON THE ITEM WAS SUCH THAT VERIFICATION SHOULD HAVE BEEN REQUESTED PRIOR TO ITS ACCEPTANCE.

IN THE CIRCUMSTANCES AND IF THE FACTS ARE AS APPEAR FROM THE PAPERS SUBMITTED BY THE CONTRACTOR, SCHULZ AND SOUARD MAY BE PAID FOR THE MATERIAL FURNISHED UNDER ITEM 10-25 OF CONTRACT NO. DA-51-508-EUC-229, ON THE BASIS OF $0.50, UNITED STATES CURRENCY, PER POUND, IF SUCH PRICE IS CONSIDERED FAIR AND REASONABLE.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING THE PAYMENT UNDER AUTHORITY HEREOF.

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