B-140529, OCT. 26, 1959

B-140529, OCT. 26, 1959

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER DATED AUGUST 17, 1959, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY (LOGISTICS), WHO REQUESTS A DECISION REGARDING AN ERROR WESTERN TREE PRODUCTS, INC., TACOMA, WASHINGTON, SUBSTANTIATES IT MADE IN ITS BID ON WHICH CONTRACT NO. DA-35-026-ENG 32618 IS BASED.

IN RESPONSE TO INVITATION NO. ENG-35-026-59-161, WESTERN TREE PRODUCTS, INC., OFFERED TO FURNISH LUMBER ITEM 1-A, 1-D AT $101.80 PER MFBM. BECAUSE THE OFFERED PRICE WAS SO LOW, THE CONTRACTING OFFICER ASSUMED THE BIDDER ELECTED TO SUPPLY THE LOW GRADE PERMISSIBLE UNDER THE INVITATION AND APPARENTLY FAILED TO NOTICE THAT IT OFFERED TO FURNISH THE ALTERNATE SUPERIOR GRADE UNTIL BROUGHT TO HIS ATTENTION IN ITS ALLEGATION OF ERROR AFTER AWARD. HE HAS STATED THAT IF HE HAD NOTED THE PRICE WAS FOR THE SUPERIOR GRADE HE WOULD HAVE REQUESTED VERIFICATION BEFORE MAKING AWARD, SINCE THE PRICE WAS AT VARIANCE WITH THE USUAL PRICE FOR THAT GRADE. FURTHER, THE PRICE BID ON ITEM 1-A, 1 D IS INCONSISTENT WITH THE APPARENTLY CORRECT PRICE OFFERED IN ANOTHER PART OF THE BID FOR LUMBER ONE GRADE LOWER IN THAT IT IS ONLY $1.80 MORE PER MFBM WHEREAS THE USUAL SPREAD BETWEEN THE TWO GRADES IS ABOUT $20 PER MFBM.

IN THE CIRCUMSTANCES, IT APPEARS THAT IF THE CONTRACTING OFFICER HAD EVALUATED THE BIDS COMPLETELY HE WOULD HAVE SUSPECTED THE PROBABILITY OF ERROR. ACCORDINGLY, SINCE THE LUMBER HAS BEEN DELIVERED, THE CONTRACT UNIT PRICE MAY BE INCREASED TO $114 PER MFBM, THE AMOUNT OF THE NEXT ..END