B-135407, MAR. 14, 1958

B-135407: Mar 14, 1958

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO LETTER OF FEBRUARY 28. PARAGRAPH 9.4 OF THE SCHEDULE SPECIFIED THAT ONE SPARE WHEEL WAS REQUIRED. BIDDERS WERE NOT RESTRICTED TO A PARTICULAR TYPE OF WHEEL. SPECIFIED THAT ONE SPARE WHEEL OR RIM WAS TO BE SUPPLIED FOR EACH UNIT. THE ERROR COMMITTED IN THIS CASE WAS THE CONTRACTOR'S FAILURE TO NOTE THAT SCHEDULE A STIPULATED THAT ONLY A SPARE WHEEL WAS TO BE FURNISHED. IT IS ADMITTED THAT THE PROCUREMENT AUTHORITIES SHOULD HAVE DETECTED THE OVERSIGHT. SINCE THE TYPE OF WHEEL SHOWN ON THE QUESTIONNAIRE WHICH THE CONTRACTOR CONTEMPLATED FURNISHING WOULD BE USELESS TO THE GOVERNMENT AS A SPARE BECAUSE A RIM IS NOT AN INTEGRAL PART OF THAT TYPE OF WHEEL ASSEMBLY.

B-135407, MAR. 14, 1958

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER OF FEBRUARY 28, 1958, WITH ENCLOSURE, FROM THE DEPUTY ASSISTANT SECRETARY OF THE ARMY (LOGISTICS) REFERRING TO US FOR DETERMINATION THE QUESTION AS TO WHETHER THERE MAY BE GRANTED THE RELIEF REQUESTED BY DORSEY TRAILERS, INCORPORATED, BECAUSE OF AN ERROR IN THE BID IT SUBMITTED WHICH FORMED THE BASIS OF CONTRACT NO. DA 20-113-ORD-21061, DATED JUNE 28, 1956.

A RESUME OF THE FACTS OF RECORD SHOWS THAT ITEM NO. 1 OF THE INVITATION CALLED FOR 234 TRAILERS TO BE FURNISHED IN ACCORDANCE WITH SCHEDULE A MADE A PART THEREOF. PARAGRAPH 9.4 OF THE SCHEDULE SPECIFIED THAT ONE SPARE WHEEL WAS REQUIRED. THE SCHEDULE ALSO REQUIRED EACH BIDDER TO EXECUTE A QUESTIONNAIRE ATTACHED TO THE INVITATION RELATING, PRIMARILY, TO SIZE OR DESCRIPTION OF THE COMPONENT PARTS TO BE USED IN THE ASSEMBLY OF THE END PRODUCT. UNDER ITEM NO. 9 OF THE QUESTIONNAIRE THE CONTRACTOR STIPULATED THAT CAST STEEL SPOKE WHEELS WOULD BE FURNISHED. BIDDERS WERE NOT RESTRICTED TO A PARTICULAR TYPE OF WHEEL, OTHERWISE ACCEPTABLE.

SCHEDULE B OF THE SUBJECT CONTRACT, AS WELL AS A PRIOR CONTRACT AWARDED TO DORSEY TRAILERS, INCORPORATED, SPECIFIED THAT ONE SPARE WHEEL OR RIM WAS TO BE SUPPLIED FOR EACH UNIT. THE ERROR COMMITTED IN THIS CASE WAS THE CONTRACTOR'S FAILURE TO NOTE THAT SCHEDULE A STIPULATED THAT ONLY A SPARE WHEEL WAS TO BE FURNISHED. LIKEWISE, IT IS ADMITTED THAT THE PROCUREMENT AUTHORITIES SHOULD HAVE DETECTED THE OVERSIGHT, SINCE THE TYPE OF WHEEL SHOWN ON THE QUESTIONNAIRE WHICH THE CONTRACTOR CONTEMPLATED FURNISHING WOULD BE USELESS TO THE GOVERNMENT AS A SPARE BECAUSE A RIM IS NOT AN INTEGRAL PART OF THAT TYPE OF WHEEL ASSEMBLY.

THE OVERSIGHT ON THE PART OF BOTH PARTIES WAS NOT BROUGHT TO LIGHT UNTIL AFTER AWARD OF THE CONTRACT AND PRODUCTION OF THE TRAILERS HAD BEEN STARTED. BECAUSE THE WHEEL CALLED FOR UNDER THE CONTRACT REQUIRED ONLY A RIM, ON WHICH A TIRE IS MOUNTED, AS SPARE EQUIPMENT, THE CONTRACT WAS AMENDED ACCORDINGLY. RESPONSIBILITY FOR THE SITUATION APPEARS TO FALL EQUALLY UPON BOTH PARTIES BECAUSE OF THE ERRONEOUS ASSUMPTION ON THE PART OF THE CONTRACTOR THAT THE SPECIFICATIONS PERTAINING TO THE SPARE WHEEL, INCLUDED IN THE ALTERNATE, THE FURNISHING OF A RIM, AND THE OVERSIGHT ON THE PART OF THE CONTRACTING OFFICER THAT IN VIEW OF THE TYPE OF WHEEL STIPULATED BY THE CONTRACTOR, ONLY A SPARE RIM WAS ACCEPTABLE.

SINCE THE GOVERNMENT RECEIVED THE SPARE PART IT WANTED, AND SINCE THE CONTRACTOR HAS ESTABLISHED THAT IN THE COMPUTATION OF ITS BID IT INCLUDED ONLY THE COST OF ONE SPARE RIM PER UNIT, WE CONCUR WITH THE CONTRACTING OFFICER AND THE OFFICE, CHIEF OF ORDNANCE, THAT THE CONTRACT PRICE SHOULD NOT BE DISTURBED, AND THAT THE BALANCE DUE UNDER THE CONTRACT BE PAID.