B-140934, OCT. 16, 1959

B-140934: Oct 16, 1959

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED OCTOBER 5. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR ALLEGED BY BOEGGEMAN LUMBER COMPANY TO HAVE BEEN MADE ON ITS BID ON WHICH CONTRACT NO. WAS MADE. THE NEXT LOW BID WAS $247 PER MFBM. THE BID OF BOEGGEMAN WAS ACCEPTED ON JULY 31. THE ERROR WAS CONFIRMED BY LETTER OF AUGUST 10. WHEREIN THE COMPANY STATED THAT THE MISTAKE WAS DUE TO A CLERICAL ERROR AND ITS BID SHOULD HAVE BEEN $251.90 INSTEAD OF $215.90 PER MFBM. STATED THAT IT WAS HIS OPINION THAT A BONA FIDE MISTAKE WAS MADE AND THAT THE BIDDER SHOULD HAVE BEEN CONTACTED PRIOR TO AWARD FOR CONFIRMATION OF BID DUE TO THE FACT THAT THE PRICE QUOTED WAS BELOW A REASONABLE PRICE FOR THE ITEM REQUIRED.

B-140934, OCT. 16, 1959

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 5, 1959, AND ENCLOSURES, FROM THE ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR ALLEGED BY BOEGGEMAN LUMBER COMPANY TO HAVE BEEN MADE ON ITS BID ON WHICH CONTRACT NO. DA 35-026-ENG- 33273, DATED JULY 31, 1959, WAS MADE.

BY INVITATION NO. ENG-35-026-60-9, ISSUED JULY 16, 1959, THE UNITED STATES ARMY ENGINEER DISTRICT, PORTLAND, OREGON, REQUESTED BIDS FOR THE FURNISHING OF CERTAIN LUMBER F.O.B. DESTINATION. BOEGGEMAN LUMBER COMPANY OFFERED TO FURNISH ITEM 17-C, 25,000 FBM OF LUMBER FOR $215.90 PER MFBM. THE NEXT LOW BID WAS $247 PER MFBM. SIX OF THE OTHER BIDS RECEIVED RANGE FROM $249.50 PER MFBM TO $265 PER MFBM. THE BID OF BOEGGEMAN WAS ACCEPTED ON JULY 31, 1959.

ON AUGUST 3, 1959, THE COMPANY NOTIFIED THE CONTRACTING OFFICER THAT IT HAD MADE AN ERROR IN ITS BID. THE ERROR WAS CONFIRMED BY LETTER OF AUGUST 10, 1959, WHEREIN THE COMPANY STATED THAT THE MISTAKE WAS DUE TO A CLERICAL ERROR AND ITS BID SHOULD HAVE BEEN $251.90 INSTEAD OF $215.90 PER MFBM. AS NO DELIVERIES HAD BEEN MADE, THE COMPANY REQUESTED THAT THE CONTRACT BE CANCELED.

THE CONTRACTING OFFICER IN FINDINGS AND RECOMMENDATIONS, DATED AUGUST 14, 1959, STATED THAT IT WAS HIS OPINION THAT A BONA FIDE MISTAKE WAS MADE AND THAT THE BIDDER SHOULD HAVE BEEN CONTACTED PRIOR TO AWARD FOR CONFIRMATION OF BID DUE TO THE FACT THAT THE PRICE QUOTED WAS BELOW A REASONABLE PRICE FOR THE ITEM REQUIRED. IN VIEW OF THIS FINDING, IT APPEARS THAT A REQUEST FOR VERIFICATION OF THE BID WOULD HAVE BEEN IN ORDER BEFORE ITS ACCEPTANCE.

ACCORDINGLY, THE CONTRACT MAY BE CANCELED WITHOUT LIABILITY TO THE COMPANY.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT OF AUGUST 14, 1959, ARE RETURNED.