B-141227, DEC. 21, 1959

B-141227: Dec 21, 1959

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED NOVEMBER 12. IN VIEW OF AN ERROR ALLEGED BY THE CORPORATION TO HAVE BEEN MADE IN ITS BID UPON WHICH THE ORDER WAS AWARDED. AN AWARD WAS MADE TO THE CORPORATION AS THE LOW BIDDER FOR THIS ITEM IN THE GROSS AMOUNT OF $325.65 BY THE ISSUANCE OF ORDER NO. IN THAT $0.167 EACH WAS QUOTED INSTEAD OF $1.67 EACH WHICH WAS THE INTENDED BID PRICE. IT IS BELIEVED. THAT HE SHOULD HAVE BEEN ON NOTICE OF THE PROBABILITY OF AN ERROR IN THE BID OF THE CORPORATION ON ITEM NO. 13. SINCE THE ERROR IS FULLY SUBSTANTIATED BY THE INVOICED AMOUNT OF $145 EACH OF THE SUPPLIER OF THE STEVENS AIRCRAFT CORPORATION. ARE RETURNED HEREWITH.

B-141227, DEC. 21, 1959

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED NOVEMBER 12, 1959, WITH ENCLOSURES, FORWARDED IN BEHALF OF THE ASSISTANT SECRETARY OF THE ARMY FOR LOGISTICS, REQUESTING OUR DECISION AS TO WHETHER THE ADDITIONAL AMOUNT OF $785.85 MAY BE ALLOWED THE STEVENS AIRCRAFT CORPORATION UNDER DEPARTMENT OF THE ARMY ORDER NO. NY-9-1053R, DATED JANUARY 29, 1959, IN VIEW OF AN ERROR ALLEGED BY THE CORPORATION TO HAVE BEEN MADE IN ITS BID UPON WHICH THE ORDER WAS AWARDED.

IN RESPONSE TO INVITATION NO. CML-30-070-59-64, ISSUED ON DECEMBER 24, 1958, BY THE U.S. ARMY CHEMICAL PROCUREMENT DISTRICT, NEW YORK, THE STEVENS AIRCRAFT CORPORATION SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHERS, ITEM NO. 13, COVERING 1,950 PIPE NIPPLES AT $0.167 EACH, LESS A DISCOUNT OF 1/2 PERCENT, 10 DAYS. AN AWARD WAS MADE TO THE CORPORATION AS THE LOW BIDDER FOR THIS ITEM IN THE GROSS AMOUNT OF $325.65 BY THE ISSUANCE OF ORDER NO. NY-9-1053R ON JANUARY 29, 1959. BY LETTER DATED FEBRUARY 24, 1959, THE CORPORATION ALLEGED A TYPOGRAPHICAL ERROR IN ITS BID FOR ITEM NO. 13, IN THAT $0.167 EACH WAS QUOTED INSTEAD OF $1.67 EACH WHICH WAS THE INTENDED BID PRICE. THE CORPORATION HAS SATISFACTORILY COMPLETED DELIVERY UNDER THE ORDER AND NOW SEEKS AN ADJUSTMENT IN PRICE TO COVER THE LOSS.

IN VIEW OF THE SUBSTANTIAL DISPARITY BETWEEN THE STEVENS' BID OF $0.167 AND THE OTHER TWO BIDS OF $0.57 AND $1.025, AND THE FURTHER FACT THAT STEVENS SUBMITTED THE HIGHEST BID ON TWELVE OF THE FOURTEEN COMPARABLE REMAINING ITEMS UNDER THE INVITATION, IT IS BELIEVED, AS STATED BY THE CONTRACTING OFFICER, THAT HE SHOULD HAVE BEEN ON NOTICE OF THE PROBABILITY OF AN ERROR IN THE BID OF THE CORPORATION ON ITEM NO. 13. THEREFORE, AND SINCE THE ERROR IS FULLY SUBSTANTIATED BY THE INVOICED AMOUNT OF $145 EACH OF THE SUPPLIER OF THE STEVENS AIRCRAFT CORPORATION, IT APPEARS THAT A PROPER ADJUSTMENT SHOULD BE MADE IN THE TRANSACTION.

ACCORDINGLY, THERE MAY BE ALLOWED THE CORPORATION SUCH AN ADDITIONAL AMOUNT FOR ITEM NO. 13 AS REPRESENTS THE NET DIFFERENCE BETWEEN THE LOW BID OF $0.167 EACH AND THE NEXT LOW BID OF $0.57 EACH, ON THE QUANTITY DELIVERED.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING PAYMENT OF THE ADDITIONAL AMOUNT HEREIN AUTHORIZED.

THE PAPERS, WITH THE EXCEPTION OF THE STATEMENT OF FACTS DATED SEPTEMBER 4, 1959, OF THE CONTRACTING OFFICER, ARE RETURNED HEREWITH.