B-136062, MAY 16, 1958

B-136062: May 16, 1958

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER OF MAY 5. TO HAVE BEEN MADE IN ITS BID OPENED MARCH 14. THE BID WAS ACCOMPANIED BY A BID DEPOSIT IN THE SUM OF $200. AWARD WAS MADE UNDER CONTRACT NO. THE CONTRACTING OFFICER HAS REPORTED THAT NO OTHER BIDS WERE RECEIVED ON THIS ITEM AND THEREFORE NO COMPARISON OF PRICES COULD BE MADE. A WORKSHEET SHOWING THE INTENDED BID AS "16" WAS SUBMITTED BY MR. THERE APPEARS SOME DOUBT THAT THE CONTRACTING OFFICER MAY HAVE MISINTERPRETED THE BID. LEAST THE MATTER WAS SUCH THAT THE CONTRACTING OFFICER SHOULD HAVE REQUESTED A CLARIFICATION OF THE BID. ARE RETURNED.

B-136062, MAY 16, 1958

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER OF MAY 5, 1958, WITH ENCLOSURES, R11.2L8/L8/NT4-28, FROM THE DIRECTOR, PURCHASE OPERATIONS DIVISION, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING A DECISION IN REGARD TO AN ERROR ALLEGED BY J. BROWN, SAN FRANCISCO, CALIFORNIA, TO HAVE BEEN MADE IN ITS BID OPENED MARCH 14, 1958.

IN RESPONSE TO INVITATION TO BID NO. B-159-58-228, DATED FEBRUARY 21, 1958, J. BROWN SUBMITTED HIS UNDATED BID OFFERING TO PURCHASE, AMONG OTHERS, ITEM 45 CONSISTING OF ONE (1) USED MOTOR LAUNCH, 26 FEET, HULL NO. 20061, BEAM 7 FEET 9 INCHES, DRAFT 3 FEET 8 INCHES, TONNAGE 6,465 POUNDS WITHOUT ENGINE, IN POOR CONDITION, FOR THE PRICE OF $66.03. THE BID WAS ACCOMPANIED BY A BID DEPOSIT IN THE SUM OF $200. AWARD WAS MADE UNDER CONTRACT NO. N228S-27868. THE CONTRACTING OFFICER HAS REPORTED THAT NO OTHER BIDS WERE RECEIVED ON THIS ITEM AND THEREFORE NO COMPARISON OF PRICES COULD BE MADE.

BY LETTER OF APRIL 8, 1958, MR. BROWN ADVISED THE CONTRACTING OFFICE THAT HIS BID HAD BEEN MISREAD BY THE CONTRACTING OFFICER AND THAT HE BID $16.03 INSTEAD OF $66.03. A WORKSHEET SHOWING THE INTENDED BID AS "16" WAS SUBMITTED BY MR. BROWN.

THE CONTRACTING OFFICER STATES IN HIS STATEMENT OF FACTS AND RECOMMENDATION THAT THE BID AS READ, $66.03, REPRESENTS A SALES RETURN OF .7 PERCENT OF THE ACQUISITION COST, WHILE THE BALANCE OF THE SALE SHOWS AN AVERAGE RETURN OF 2.7 PERCENT BUT THAT A RE-EXAMINATION OF THE ORIGINAL BID INDICATES A POSSIBLE MISINTERPRETATION OF THE FIGURE AS "66" INSTEAD OF "16" AND RECOMMENDS THAT RELIEF BE GRANTED.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS SOME DOUBT THAT THE CONTRACTING OFFICER MAY HAVE MISINTERPRETED THE BID. LEAST THE MATTER WAS SUCH THAT THE CONTRACTING OFFICER SHOULD HAVE REQUESTED A CLARIFICATION OF THE BID. IN VIEW OF THE FOREGOING AND THE FAVORABLE RECOMMENDATION OF THE CONTRACTING OFFICER THAT RELIEF BE GRANTED, THE AWARD TO J. BROWN ON ITEM 45 MAY BE CANCELED.

THE PAPERS, WITH THE EXCEPTION OF MR. BROWN'S LETTER OF APRIL 8, 1958, ARE RETURNED.