B-140656, OCT. 27, 1959

B-140656: Oct 27, 1959

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FEDERAL AVIATION AGENCY: REFERENCE IS MADE TO LETTER DATED SEPTEMBER 2. AFTER THE BIDS RECEIVED IN RESPONSE TO INVITATION NO. 6-60-9 WERE OPENED ON AUGUST 11. NOTWITHSTANDING THE ALLEGATION AND THE FACT THAT THE NEXT LOWEST RESPONSIVE BID WAS $317 PER UNIT. THE ERROR OCCURRED WHEN INSTEAD OF THE OVER-ALL $336.05 UNIT PRICE THE $104.08 FREIGHT CHARGE WAS COPIED ON THE BID FORM. SINCE IT IS CLEAR THAT THE CONTRACTING OFFICER MADE THE AWARD WITH KNOWLEDGE OF THE ERROR IN BID WHICH HAS BEEN CLEARLY AND CONVINCINGLY ESTABLISHED.

B-140656, OCT. 27, 1959

TO THE HONORABLE E. R. QUESADA, ADMINISTRATOR, FEDERAL AVIATION AGENCY:

REFERENCE IS MADE TO LETTER DATED SEPTEMBER 2, 1959, WITH ENCLOSURES, FROM THE ASSISTANT ADMINISTRATOR FOR MANAGEMENT SERVICES REQUESTING A DECISION REGARDING AN ERROR IN BID AMERICAN FACTORS, LTD., HONOLULU, HAWAII, ALLEGED BEFORE THE CONTRACTING OFFICER MADE AN AWARD TO IT.

AFTER THE BIDS RECEIVED IN RESPONSE TO INVITATION NO. 6-60-9 WERE OPENED ON AUGUST 11, 1959, AMERICAN FACTORS, LTD., THE LOW BIDDER ON ITEM NO. 2 WHICH COVERED THE FURNISHING OF THREE "90 FT.-12 LB. PRESSURE CREOSOTED" DOUGLAS FIR POLES, TELEPHONED THE CONTRACTING OFFICER AND ALLEGED ERROR IN ITS $104.08 UNIT PRICE, EXPLAINING THAT IT MADE A MISTAKE IN TRANSPOSING THE PRICE FROM ITS WORK SHEET TO THE BID FORM. NOTWITHSTANDING THE ALLEGATION AND THE FACT THAT THE NEXT LOWEST RESPONSIVE BID WAS $317 PER UNIT, THE CONTRACTING OFFICER MADE AN AWARD TO THE BIDDER.

THE PHOTOSTAT OF THE WORK SHEET SUBSEQUENTLY SUBMITTED BY THE BIDDER ON AUGUST 13, 1959, SHOWS THAT THE BID PRICE ACTUALLY HAD BEEN COMPUTED AT $336.05 BY ADDING TO ITS SUPPLIER'S $201.40 F.A.S. PORTLAND, OREGON, UNIT PRICE THE SUM OF $104.08 FOR FREIGHT TO HONOLULU AND $30.57 FOR PROFIT. THE ERROR OCCURRED WHEN INSTEAD OF THE OVER-ALL $336.05 UNIT PRICE THE $104.08 FREIGHT CHARGE WAS COPIED ON THE BID FORM.

SINCE IT IS CLEAR THAT THE CONTRACTING OFFICER MADE THE AWARD WITH KNOWLEDGE OF THE ERROR IN BID WHICH HAS BEEN CLEARLY AND CONVINCINGLY ESTABLISHED, THE CONTRACT UNIT PRICE SHOULD BE INCREASED TO THAT OF THE NEXT LOWEST RESPONSIVE BID.