B-135567, MAY 12, 1958

B-135567: May 12, 1958

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TO ADAM HENRICH: FURTHER REFERENCE IS MADE TO YOUR LETTER DATED MARCH 18. THE PRINCIPAL BASIS FOR YOUR PROTEST IS THAT THE ADMINISTRATIVE OFFICE INCREASED THE VALUE OF THE PROPERTY TO BE SOLD FROM $100. YOU CONTEND THAT IF YOU HAD KNOWN OF THE INCREASE YOU WOULD HAVE CUT YOUR BID OFFER IN HALF. WHICH WOULD HAVE MADE YOU THE LOW BIDDER AND ENTITLED YOU TO THE AWARD OF THE CONTRACT. THE RECORD INDICATES THAT YOU HAVE CONFUSED THE ESTIMATED SALES VALUE OF THE PROPERTY WITH THE APPROXIMATE ACQUISITION COST. ALL PARTIES INTERESTED IN CONDUCTING THE AUCTION WERE ADVISED TO INSPECT ALL THE PROPERTY TO BE OFFERED FOR SALE. AFTER THE PROPOSALS WERE OPENED. NEGOTIATIONS WERE HAD WITH ALL BIDDERS.

B-135567, MAY 12, 1958

TO ADAM HENRICH:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED MARCH 18, 1958, PROTESTING THE AWARD BY THE DEPARTMENT OF THE ARMY OF A CONTRACT FOR AUCTIONEERING SERVICES TO ANOTHER BIDDER THAN YOURSELF.

THE PRINCIPAL BASIS FOR YOUR PROTEST IS THAT THE ADMINISTRATIVE OFFICE INCREASED THE VALUE OF THE PROPERTY TO BE SOLD FROM $100,000 $300,000 TO $2,500,000 AFTER AWARD OF THE CONTRACT. YOU CONTEND THAT IF YOU HAD KNOWN OF THE INCREASE YOU WOULD HAVE CUT YOUR BID OFFER IN HALF, WHICH WOULD HAVE MADE YOU THE LOW BIDDER AND ENTITLED YOU TO THE AWARD OF THE CONTRACT.

THE RECORD INDICATES THAT YOU HAVE CONFUSED THE ESTIMATED SALES VALUE OF THE PROPERTY WITH THE APPROXIMATE ACQUISITION COST. THE FORM LETTER ACCOMPANYING THE INVITATION FOR PROPOSALS ADVISED ALL BIDDERS, FOR THEIR GUIDANCE AND INFORMATION, THAT THE ESTIMATED (NOT GUARANTEED) PROCEEDS FROM THE SALE OF ALL PROPERTY INVOLVED SHOULD BE A MINIMUM OF $100,000 BUT WOULD UNDOUBTEDLY PROVE TO GO HIGHER. FURTHERMORE, ALL PARTIES INTERESTED IN CONDUCTING THE AUCTION WERE ADVISED TO INSPECT ALL THE PROPERTY TO BE OFFERED FOR SALE. PARAGRAPH 4 OF THE SPECIAL CONDITIONS, MADE A PART OF THE INVITATION WHICH YOU SIGNED, STATED THAT THE PROPERTY OFFERED FOR SALE HAD AN ACQUISITION COST OF APPROXIMATELY TWO MILLION DOLLARS. AFTER THE PROPOSALS WERE OPENED, NEGOTIATIONS WERE HAD WITH ALL BIDDERS, AND IT IS REPORTED THAT YOU, AS WELL AS THE OTHER BIDDERS, WERE ADVISED DURING THOSE NEGOTIATIONS THAT THE ACQUISITION VALUE OF THE PROPERTY HAD REACHED $2,241,000 AND IN ALL PROBABILITY WOULD GO HIGHER. IT IS ALSO REPORTED THAT YOU THEN REDUCED YOUR OFFER TO ONE PERCENT, BUT BY LETTER OF FEBRUARY 5, 1958, YOU WITHDREW THAT OFFER.

IT APPEARS THAT YOU HAVE MISINTERPRETED THE MEANING OF THE STATEMENT IN THE NEWSPAPER ADVERTISEMENT (FRANKFURTER ALLGEMEINE) THAT THE PROPERTY WAS WORTH OR VALUED AT 10 MILLION MARKS. THE VALUE STATED IN THIS ADVERTISEMENT HAD REFERENCE TO THE ACQUISITION COST AND NOT TO THE SALES VALUE OR ANTICIPATED PROCEEDS OF THE PROPERTY. AS POINTED OUT ABOVE, THIS DISTINCTION WAS CLEARLY INDICATED IN THE INVITATION ON WHICH YOU BASED YOUR PROPOSAL, AND IT APPEARS THAT THE PROPERTY ADVERTISED FOR SALE WAS EXACTLY THE PROPERTY WHICH WAS REFERRED TO DURING THE NEGOTIATIONS WITH YOU AND OTHER INTERESTED AUCTIONEERS, AND NOT ANY SUBSTANTIALLY GREATER QUANTITY OF PROPERTY AS ALLEGED BY YOU.

IN THE CIRCUMSTANCES WE FIND NO PROPER GROUND FOR OBJECTION TO THE ACTION OF THE CONTRACTING AGENCY IN THIS INSTANCE.