B-135293, MAR. 6, 1958

B-135293: Mar 6, 1958

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED FEBRUARY 21. IS BASED. THE COMPANY'S BID OF $616.66 WAS THE HIGHEST RECEIVED FOR ITEM 55. WAS ACCEPTED BY THE CONTRACT DATED JANUARY 31. THAT NO BID WAS INTENDED FOR ITEM 55. THE NEXT HIGH BID RECEIVED ON ITEM 55 WAS $150 AND OF THE 15 OTHER BIDS RECEIVED ON THIS ITEM ONLY FOUR WERE MORE THAN $50. THE CONTRACTOR'S BID OF $616.66 ALLEGES THAT ON THE DAY THE BIDS WERE OPENED. HE INDICATED TO THE CONTRACTING OFFICER THAT HE WAS INTERESTED IN THE ANCHOR CHAIN LISTED UNDER ITEM 54. WAS MADE. SINCE THE VERY WIDE DIFFERENCE BETWEEN THE CONTRACTOR'S BID AND THE OTHER BIDS ON ITEM 54 APPEARS SUFFICIENT TO HAVE INDICATED THE PROBABILITY OF AN ERROR IN THE BID.

B-135293, MAR. 6, 1958

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED FEBRUARY 21, 1958, WITH ENCLOSURES, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WEST COAST WIRE ROPE AND RIGGING, INC., ALLEGES IT MADE IN ITS BID ON WHICH CONTRACT NO. N246S-8872, DATED JANUARY 31, 1958, IS BASED.

BY SALES LETTER NO. SL-6-58-246 THE U.S. NAVAL AIR STATION, NORTH ISLAND, SAN DIEGO, CALIFORNIA, REQUESTED BIDS--- TO BE OPENED JANUARY 28, 1958--- FOR THE PURCHASE OF MISCELLANEOUS MATERIAL. THE COMPANY'S BID OF $616.66 WAS THE HIGHEST RECEIVED FOR ITEM 55, STEEL STAIRS AND I BEAMS, AND WAS ACCEPTED BY THE CONTRACT DATED JANUARY 31, 1958. BY LETTER DATED FEBRUARY 5, 1958, THE CONTRACTOR ADVISED THE CONTRACTING OFFICER THAT HE HAD MADE AN ERROR IN THAT HE HAD INTENDED TO BID ON ITEM 54, STEEL LINK ANCHOR CHAINS, AND THAT NO BID WAS INTENDED FOR ITEM 55. THE CONTRACTOR HAD FURNISHED HIS WORKSHEETS ESTABLISHING HIS INTEREST IN ITEM 54. THE NEXT HIGH BID RECEIVED ON ITEM 55 WAS $150 AND OF THE 15 OTHER BIDS RECEIVED ON THIS ITEM ONLY FOUR WERE MORE THAN $50. FURTHERMORE, THE CONTRACTOR'S BID OF $616.66 ALLEGES THAT ON THE DAY THE BIDS WERE OPENED, BUT PRIOR TO AWARD, HE INDICATED TO THE CONTRACTING OFFICER THAT HE WAS INTERESTED IN THE ANCHOR CHAIN LISTED UNDER ITEM 54.

THE EVIDENCE OF RECORD INDICATES THAT AN ERROR, IN FACT, WAS MADE, AND SINCE THE VERY WIDE DIFFERENCE BETWEEN THE CONTRACTOR'S BID AND THE OTHER BIDS ON ITEM 54 APPEARS SUFFICIENT TO HAVE INDICATED THE PROBABILITY OF AN ERROR IN THE BID, IT SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING VERIFICATION.

ACCORDINGLY, THE CONTRACT SHOULD BE CANCELED WITHOUT LIABILITY TO THE COMPANY. THE PAPERS ARE RETURNED.