B-137717, NOVEMBER 17, 1958, 38 COMP. GEN. 368

B-137717: Nov 17, 1958

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CONTRACTS - AWARDS - ERRONEOUS - PARTIAL PERFORMANCE - PAYMENT BASIS AFTER DISCOVERY THAT A SUPPLY CONTRACT HAS BEEN AWARDED TO OTHER THAN THE LOWEST BIDDER DUE TO THE MISFILING OF BIDS AND AFTER THE CONTRACT IS CANCELED SUBSEQUENT TO PARTIAL PERFORMANCE. 1958: REFERENCE IS MADE TO A LETTER DATED OCTOBER 17. FOR HAY DELIVERED BY THE COMPANY UNDER A CONTRACT WHICH WAS CANCELED BECAUSE IT HAD BEEN AWARDED THROUGH ADMINISTRATIVE ERROR. AWARD WAS MADE TO GEORGE E. IT WAS DISCOVERED THAT TWO BIDS SUBMITTED IN DUE TIME UNDER INVITATION NO. WAS INFORMED BY TELEPHONE AND WRITTEN CONFIRMATION ON SEPTEMBER 23 THAT ITS CONTRACT WAS CANCELED BECAUSE OF THE ERRONEOUS AWARD. THE CONTRACTOR WAS ADVISED FURTHER THAT THE GOVERNMENT WOULD ACCEPT 6 TONS OF HAY WHICH HAD BEEN DELIVERED BY SUBCONTRACTORS AND TWO TRUCKLOADS THEN IN TRANSIT AND THAT IT SHOULD SUBMIT ITS BILL FOR HAY SO ACCEPTED.

B-137717, NOVEMBER 17, 1958, 38 COMP. GEN. 368

CONTRACTS - AWARDS - ERRONEOUS - PARTIAL PERFORMANCE - PAYMENT BASIS AFTER DISCOVERY THAT A SUPPLY CONTRACT HAS BEEN AWARDED TO OTHER THAN THE LOWEST BIDDER DUE TO THE MISFILING OF BIDS AND AFTER THE CONTRACT IS CANCELED SUBSEQUENT TO PARTIAL PERFORMANCE, THE CONTRACTOR WHO RECEIVES THE ERRONEOUS AWARD MAY BE PAID FOR PARTIAL PERFORMANCE ON A QUANTUM VALEBAT BASIS AT THE PRICE QUOTED BY THE LOWEST BIDDER AND NOT AT THE PRICE SPECIFIED IN THE ERRONEOUSLY AWARDED CONTRACT.

TO THE SECRETARY OF AGRICULTURE, NOVEMBER 17, 1958:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 17, 1958, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY, REQUESTING A DECISION AS TO WHETHER PAYMENT IN THE AMOUNT OF $812.58 MAY BE MADE TO GEORGE E. MORRISON AND CO. FOR HAY DELIVERED BY THE COMPANY UNDER A CONTRACT WHICH WAS CANCELED BECAUSE IT HAD BEEN AWARDED THROUGH ADMINISTRATIVE ERROR.

BY INVITATION NO. ARS-122-B-59 DATED SEPTEMBER 4, 1958, THE AGRICULTURAL RESEARCH SERVICE, ADMINISTRATIVE SERVICES DIVISION, REQUESTED BIDS--- TO BE OPENED SEPTEMBER 18, 1958--- FOR FURNISHING 60 TONS OF ALFALFA HAY TO THE AGRICULTURAL RESEARCH CENTER, BELTSVILLE, MARYLAND. ON SEPTEMBER 19, 1958, AWARD WAS MADE TO GEORGE E. MORRISON AND CO. AS THE LOWEST BIDDER AT A PRICE OF $48.98 PER TON (CONTRACT NO. 12-14-100-2921 (44) ). SEPTEMBER 23, IT WAS DISCOVERED THAT TWO BIDS SUBMITTED IN DUE TIME UNDER INVITATION NO. ARS-122-B-59 HAD BEEN FILED INADVERTENTLY UNDER ANOTHER INVITATION, ONE OF THOSE BIDS HAVING BEEN SUBMITTED BY E. R. DEIBERT COMPANY AT A PRICE OF $44 PER TON. GEORGE E. MORRISON AND CO. WAS INFORMED BY TELEPHONE AND WRITTEN CONFIRMATION ON SEPTEMBER 23 THAT ITS CONTRACT WAS CANCELED BECAUSE OF THE ERRONEOUS AWARD. THE CONTRACTOR WAS ADVISED FURTHER THAT THE GOVERNMENT WOULD ACCEPT 6 TONS OF HAY WHICH HAD BEEN DELIVERED BY SUBCONTRACTORS AND TWO TRUCKLOADS THEN IN TRANSIT AND THAT IT SHOULD SUBMIT ITS BILL FOR HAY SO ACCEPTED, WHICH BILL WOULD BE TRANSMITTED TO THE GENERAL ACCOUNTING OFFICE FOR SETTLEMENT. WITH THE LETTER OF OCTOBER 17, 1958, THERE WAS TRANSMITTED GEORGE E. MORRISON AND CO.'S BILLING IN THE AMOUNT OF $812.58 FOR 16.59 TONS OF HAY AT $48.98 PER TON.

UNDER DATE OF SEPTEMBER 26, 1958, E. R. DEIBERT COMPANY, AS LOW BIDDER, WAS AWARDED CONTRACT NO. 12-14-100-2927 (44) FOR FURNISHING THE REMAINING 44 TONS OF HAY AT $44 PER TON.

GEORGE E. MORRISON AND CO. PROCEEDED TO COMPLY WITH A CONTRACT WHICH IT THOUGHT VALID AND WHICH HAD BEEN AWARDED BY A REPRESENTATIVE OF THE GOVERNMENT AUTHORIZED TO ENTER INTO CONTRACTS ON BEHALF OF THE GOVERNMENT. THE UNITED STATES HAS RECEIVED THE BENEFIT OF THE HAY DELIVERED TO IT BY GEORGE E. MORRISON AND CO. IN SUCH CIRCUMSTANCES, PAYMENT FOR THE HAY SO DELIVERED MAY BE MADE ON A QUANTUM VALEBAT BASIS. SEE 21 COMP. GEN. 800, AND 37 COMP. GEN. 330, 332. SINCE E. R. DEIBERT COMPANY IS OBLIGATED TO FURNISH HAY MEETING THE SPECIFICATIONS AT A PRICE OF $44 PER TON IN ACCORDANCE WITH ITS BID, THAT AMOUNT MAY BE REGARDED AS THE PRICE TO WHICH GEORGE E. MORRISON AND CO. IS ENTITLED FOR THE HAY DELIVERED TO THE GOVERNMENT UNDER THE CANCELED CONTRACT AND PAYMENT MAY BE MADE BY YOUR DEPARTMENT ON THAT BASIS.