B-142128, MAR. 10, 1960

B-142128: Mar 10, 1960

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED FEBRUARY 25. IS BASED. THE PRINCIPAL ITEMS OF WHICH WERE SHOWN ON THE INVITATION AS 162 PAIRS OF TROUSERS AND 48 SHIRTS. AWARD WAS MADE ON DECEMBER 3. A NOTATION OF THE COMPANY'S CLAIM OF ERROR WAS NOT MADE ON THE ABSTRACT OF BIDS AND THAT THE LETTER OF DECEMBER 2. WAS NOT BROUGHT TO HIS ATTENTION UNTIL AFTER THE AWARD OF THE CONTRACT. THE CONTRACTING OFFICER STATES THAT THE BID WAS UNUSUALLY HIGH. THERE IS LITTLE DOUBT THAT OMIYA TEX SHOKAI MADE AN ERROR IN ITS BID AS ALLEGED.

B-142128, MAR. 10, 1960

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED FEBRUARY 25, 1960, WITH ENCLOSURES, FROM DEPUTY THE QUARTERMASTER GENERAL, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH OMIYA TEX SHOKAI ALLEGES IT MADE ON ITEM 1 OF ITS BID ON WHICH CONTRACT NO. DA (S) 92-557-FEC-31948, DATED DECEMBER 3, 1959, IS BASED.

BY INVITATION NO. 92-557-S-60-209, DATED OCTOBER 31, 1959, THE UNITED STATES ARMY PROPERTY DISPOSAL SALES AGENCY, KANAGAWA-KEN, JAPAN, REQUESTED BIDS FOR THE PURCHASE FROM THE GOVERNMENT OF CERTAIN MISCELLANEOUS MATERIAL AS DESCRIBED THEREIN. IN RESPONSE THERETO, OMIYA TEX SHOKAI SUBMITTED A BID ON SEVERAL ITEMS, INCLUDING A BID OF 295,700 ON ITEM 1, CONSISTING OF A LOT OF USED CLOTHING, THE PRINCIPAL ITEMS OF WHICH WERE SHOWN ON THE INVITATION AS 162 PAIRS OF TROUSERS AND 48 SHIRTS. OTHER BIDS RECEIVED ON THIS ITEM RANGED FROM 45,000 TO 81,000. ON THE DAY OF THE BID OPENING THE COMPANY ORALLY ALLEGED A MISTAKE IN BID, STATING THAT IT HAD MISREAD THE FIGURE OF 162 TROUSERS AS 1,162 TROUSERS. THE COMPANY REQUESTED PERMISSION TO WITHDRAW THE BID AND ON DECEMBER 2, 1959, SUBMITTED A WRITTEN REQUEST TO WITHDRAW THE BID. AWARD WAS MADE ON DECEMBER 3, 1959.

THE CONTRACTING OFFICER REPORTS THAT, FOR SOME UNEXPLAINED REASON, A NOTATION OF THE COMPANY'S CLAIM OF ERROR WAS NOT MADE ON THE ABSTRACT OF BIDS AND THAT THE LETTER OF DECEMBER 2, 1959, WAS NOT BROUGHT TO HIS ATTENTION UNTIL AFTER THE AWARD OF THE CONTRACT. FURTHER, THE CONTRACTING OFFICER STATES THAT THE BID WAS UNUSUALLY HIGH, NOT ONLY IN RELATION TO THE OTHER BIDS RECEIVED, BUT IN COMPARISON WITH PREVIOUS BIDS FROM THIS COMPANY FOR CLOTHING SOLD ON A LOT BASIS.

THERE IS LITTLE DOUBT THAT OMIYA TEX SHOKAI MADE AN ERROR IN ITS BID AS ALLEGED. IN VIEW THEREOF, AND SINCE THE CONTRACTING OFFICER HAD ACTUAL NOTICE OF THE ERROR BEFORE AWARD, ITEM 1 SHOULD BE CANCELED.