B-141555, DEC. 30, 1959

B-141555: Dec 30, 1959

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED DECEMBER 21. AFTER AWARD THE CORPORATION ADVISED THE SUPPLY DEPOT THAT AN ERROR HAD BEEN MADE IN THAT ITS BID WAS BASED ON 5 HP. $2.50 AND $1.11 EACH WERE RECEIVED FOR ITEM NO. 37 AND THE ORIGINAL ACQUISITION COST OF THE MOTORS WAS $50 EACH. SINCE THE BID OF $73.50 EACH OF THE AJAX ELECTRIC MOTOR CORPORATION FOR THIS ITEM IS ALMOST 50 PERCENT HIGHER THAN THE ORIGINAL ACQUISITION COST OF EACH MOTOR. IT REASONABLY MAY BE CONCLUDED THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE PROBABILITY OF AN ERROR IN THE BID PRIOR TO AWARD.

B-141555, DEC. 30, 1959

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED DECEMBER 21, 1959, WITH ENCLOSURES, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING OUR DECISION AS TO WHETHER CONTRACT NO. N665S 45659, DATED SEPTEMBER 23, 1959, MAY BE CANCELED IN VIEW OF AN ERROR IN THE RELATED BID.

THE CONTRACT RESULTED WHEN THE U.S. NAVAL SUPPLY DEPOT CLEAR FIELD, OGDEN, UTAH, ACCEPTED A BID WHICH THE AJAX ELECTRIC MOTOR CORPORATION, ROCHESTER, NEW YORK SUBMITTED IN RESPONSE TO INVITATION NO. 30-60-665 FOR THE PURCHASE OF ITEM NO. 37, COVERING FOUR MOTORS, .5 HP., ETC., AT $73.50 EACH. AFTER AWARD THE CORPORATION ADVISED THE SUPPLY DEPOT THAT AN ERROR HAD BEEN MADE IN THAT ITS BID WAS BASED ON 5 HP. MOTORS INSTEAD OF THE .5 HP. MOTORS SPECIFIED. THE CORPORATION SEEKS RELEASE FROM THE CONTRACT AND THE RETURN OF ITS BID DEPOSIT.

THREE OTHER BIDS OF $3, $2.50 AND $1.11 EACH WERE RECEIVED FOR ITEM NO. 37 AND THE ORIGINAL ACQUISITION COST OF THE MOTORS WAS $50 EACH. SINCE THE BID OF $73.50 EACH OF THE AJAX ELECTRIC MOTOR CORPORATION FOR THIS ITEM IS ALMOST 50 PERCENT HIGHER THAN THE ORIGINAL ACQUISITION COST OF EACH MOTOR, IT REASONABLY MAY BE CONCLUDED THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE PROBABILITY OF AN ERROR IN THE BID PRIOR TO AWARD.

ACCORDINGLY, THE CONTRACT MAY BE CANCELED AND THE BID DEPOSIT REFUNDED.

THE PAPERS, WITH THE EXCEPTION OF THE STATEMENT OF THE CONTRACTING OFFICER DATED OCTOBER 27, ..END :