B-135453, MAR. 27, 1958

B-135453: Mar 27, 1958

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UNITED STATES ATOMIC ENERGY COMMISSION: REFERENCE IS MADE TO A LETTER DATED MARCH 7. ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER HA-57-1531 IS BASED. THE BID OF THE COMPANY WAS ACCEPTED AND A PURCHASE ORDER DATED DECEMBER 11. WAS ISSUED. IT APPEARS THAT THE SUPPLIES WERE PARTIALLY DELIVERED ON DECEMBER 28. FINAL DELIVERY WAS MADE MARCH 11. WERE PAID ON APRIL 4. THAT THE COMPANY'S REQUEST FOR RELIEF WAS DATED JUNE 19. YOU STATE YOU HAVE NO RECORD OF SUCH A LETTER AND THAT PRESUMABLY THE LETTER WAS LOST IN THE MAILS. THE COMPANY CONTENDS THAT IN OFFERING TO FURNISH 100 LUGS FOR $23 A MISTAKE OCCURRED IN THE PLACING OF THE DECIMAL POINT AND THAT ITS BID PRICE SHOULD HAVE BEEN $230.

B-135453, MAR. 27, 1958

TO HONORABLE LEWIS L. STRAUSS, CHAIRMAN, UNITED STATES ATOMIC ENERGY COMMISSION:

REFERENCE IS MADE TO A LETTER DATED MARCH 7, 1958, WITH ENCLOSURES, FROM THE DEPUTY GENERAL MANAGER, REQUESTING A DECISION RELATIVE TO AN ERROR THE STUBBS ELECTRIC COMPANY, PORTLAND, OREGON, ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER HA-57-1531 IS BASED.

THE U.S. ATOMIC ENERGY COMMISSION, HANFORD OPERATIONS OFFICE, RICHLAND, WASHINGTON, BY INVITATION NO. 451-57-169, DATED NOVEMBER 26, 1956, REQUESTED BIDS FOR FURNISHING, AMONG OTHER ITEMS, 100 SOLDERLESS LUGS, AS SPECIFIED. THE STUBBS ELECTRIC COMPANY SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHERS, THE LUGS UNDER ITEM 3 AT A PRICE OF $23. THE BID OF THE COMPANY WAS ACCEPTED AND A PURCHASE ORDER DATED DECEMBER 11, 1956, WAS ISSUED.

IT APPEARS THAT THE SUPPLIES WERE PARTIALLY DELIVERED ON DECEMBER 28,1956, AND FINAL DELIVERY WAS MADE MARCH 11, 1958. IT ALSO APPEARS THAT THE COMPANY'S INVOICES FOR THESE DELIVERIES DATED FEBRUARY 19 AND MARCH 14, 1957, WERE PAID ON APRIL 4, 1957, AND THAT THE COMPANY'S REQUEST FOR RELIEF WAS DATED JUNE 19, 1957. IN REPLY TO THE COMMISSION'S INQUIRY AS TO THE REASON FOR THE DELAY IN ALLEGING ERROR, THE COMPANY CLAIMS THAT IT FIRST NOTIFIED THE HANFORD OFFICE OF ITS ERROR ON JANUARY 9, 1957. YOU STATE YOU HAVE NO RECORD OF SUCH A LETTER AND THAT PRESUMABLY THE LETTER WAS LOST IN THE MAILS.

THE COMPANY CONTENDS THAT IN OFFERING TO FURNISH 100 LUGS FOR $23 A MISTAKE OCCURRED IN THE PLACING OF THE DECIMAL POINT AND THAT ITS BID PRICE SHOULD HAVE BEEN $230. THE ABSTRACT OF BIDS INDICATES THAT TWO OTHER BIDDERS QUOTED PRICES OF $238 AND $243, RESPECTIVELY. IT SEEMS APPARENT THAT THE COMPANY MADE AN ERROR IN ITS BID ON ITEM 3 AND, IN THE CIRCUMSTANCES, THAT THE BID AS TO ITEM 3 SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID.

ACCORDINGLY, AND SINCE THE LUGS HAVE BEEN DELIVERED, AN ADDITIONAL PAYMENT OF $196 IS AUTHORIZED TO BE MADE TO THE STUBBS ELECTRIC COMPANY, FOR THE QUANTITY OF LUGS UNDER ITEM 3 OF PURCHASE ORDER NO. HA-57-1531, AS RECOMMENDED BY THE DEPUTY GENERAL MANAGER. A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING THE ADDITIONAL PAYMENT.

THE PAPERS, WITH THE EXCEPTION OF YOUR LETTER OF MARCH 7, 1958, ARE RETURNED AS REQUESTED.