B-141668, JAN. 25, 1960

B-141668: Jan 25, 1960

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO LETTER DATED JANUARY 6. AT THE TIME THE BIDS ON ITEM 62 WERE ANNOUNCED ON THE DAY OF THE SALE. ORAL REQUEST WAS MADE FOR THE BIDDER TO VERIFY THE BID. THE BIDDER WAS NOT PRESENT AT THE SALE AND THERE WAS NO RESPONSE. NO FURTHER ATTEMPT WAS MADE TO OBTAIN VERIFICATION OF THE BID. THE ITEM WAS AWARDED TO MR. THE UNIT PRICE WAS TO GOVERN. IMMEDIATELY AFTER THE AWARD WAS MADE. HE STATES THAT HE HAD BID ON SEVERAL ITEMS WHICH CONSISTED OF 200 PAIRS OF BOOTS IN RESPECT TO WHICH UNIT PRICES ON A PER PAIR BASIS WERE REQUIRED TO BE STATED (ITEMS 56 THROUGH 61 OF THE INVITATION ARE SUCH ITEMS). HE DID NOT NOTICE THAT THE UNIT PRICE FOR THE ITEM INVOLVED WAS TO BE ON A PER POUND BASIS.

B-141668, JAN. 25, 1960

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER DATED JANUARY 6, 1960, FROM THE DEPUTY QUARTERMASTER GENERAL, WITH ENCLOSURE, ON BEHALF OF THE ASSISTANT SECRETARY (LOGISTICS), REQUESTING A DECISION AS TO WHETHER AN AWARD MADE TO D. W. RUDD FOR ITEM NO. 62 OF SPOT BID SALE INVITATION NO. 09 038-S-60- 2, ISSUED BY THE PROPERTY DISPOSAL DIVISION, FORT BENNING, GEORGIA, MAY BE CANCELLED BECAUSE OF THE MISTAKE IN BID ALLEGED.

IT APPEARS THAT D. W. RUDD SUBMITTED A SPOT BID CARD BY MAIL SHOWING A BID PRICE OF 50 CENTS PER UNIT AND A TOTAL PRICE OF $100 FOR THE ITEM INVOLVED, WHICH CONSISTED OF 1100 POUNDS OF MISMATED COMBAT BOOTS. OTHER BIDS RANGED FROM $125 FOR THE ENTIRE ITEM TO 27 CENTS PER POUND ($297). AT THE TIME THE BIDS ON ITEM 62 WERE ANNOUNCED ON THE DAY OF THE SALE, SEPTEMBER 3, 1959, THE PROPERTY DISPOSAL OFFICER NOTED THAT THE UNIT AND TOTAL PRICE OF THE RUDD BID DID NOT AGREE, AND ORAL REQUEST WAS MADE FOR THE BIDDER TO VERIFY THE BID. HOWEVER, THE BIDDER WAS NOT PRESENT AT THE SALE AND THERE WAS NO RESPONSE. NO FURTHER ATTEMPT WAS MADE TO OBTAIN VERIFICATION OF THE BID, AND THE ITEM WAS AWARDED TO MR. RUDD FOR A TOTAL PRICE OF $550, APPLYING THE PROVISION OF THE INVITATION THAT IN CASE OF ERROR IN THE EXTENSION OF PRICES, THE UNIT PRICE WAS TO GOVERN.

IMMEDIATELY AFTER THE AWARD WAS MADE, THE BIDDER ALLEGED AN ERROR AND REQUESTED THAT THE AWARD BE CANCELLED. IN A LETTER DATED SEPTEMBER 4, 1959, HE STATES THAT HE HAD BID ON SEVERAL ITEMS WHICH CONSISTED OF 200 PAIRS OF BOOTS IN RESPECT TO WHICH UNIT PRICES ON A PER PAIR BASIS WERE REQUIRED TO BE STATED (ITEMS 56 THROUGH 61 OF THE INVITATION ARE SUCH ITEMS), AND HE DID NOT NOTICE THAT THE UNIT PRICE FOR THE ITEM INVOLVED WAS TO BE ON A PER POUND BASIS. HE FURTHER STATES THAT HE LOOKED AT THE BOOTS COMPRISING ITEM 62 AND THE BOXES WERE ABOUT THE SAME (ABOUT THE SAME NUMBER APPARENTLY), AND HE INTENDED TO BID 50 CENTS PER PAIR, OR A TOTAL OF $100 FOR THE LOT, PRESUMABLY FOR 200 BOXES, OR PAIRS OF BOOTS.

AS INDICATED IN THE REPORT SUBMITTED BY THE QUARTERMASTER GENERAL IN THIS MATTER, WE HAVE HELD THAT THE CLAUSE IN THE INVITATION WHICH PROVIDES THAT IN CASE OF ERROR IN THE EXTENSION OF PRICES THE UNIT PRICE WILL GOVERN SHOULD BE APPLIED, WITHOUT VERIFICATION, ONLY WHERE THE CORRECTION RESULTS IN A RELATIVELY MINOR CHANGE IN THE EXTENDED PRICE OF WHERE THE CIRCUMSTANCES INDICATE THAT THE UNIT PRICE ACTUALLY REPRESENTS THE INTENDED PRICE. 37 COMP. GEN. 829. IN THE PRESENT INSTANCE, THE CORRECTION RESULTED IN AN EXTENDED PRICE WHICH WAS FIVE AND ONE HALF TIMES THAT SHOWN IN THE BID. MOREOVER, THE AMOUNTS OF THE OTHER BIDS FOR THE ITEM INDICATED THAT THE EXTENDED PRICE THEREFOR AS SHOWN IN THE RUDD BID WAS MORE LIKELY TO BE THE INTENDED BID THAN THE UNIT PRICE.

IN VIEW OF THE ABOVE, AND SINCE THE ERROR APPEARS TO HAVE BEEN MADE AS ALLEGED, THE AWARD OF THE ITEM TO D. W. RUDD MAY BE CANCELLED AND THE BID DEPOSIT RETURNED TO HIM.

THE ENCLOSURE FORWARDED WITH THE DEPUTY QUARTERMASTER GENERAL'S LETTER, WITH THE EXCEPTION OF THE EXTRA COPY OF THE QUARTERMASTER GENERAL'S REPORT, IS RETURNED.