B-142292, MAR. 24, 1960

B-142292: Mar 24, 1960

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER (R11.2) DATED MARCH 14. ALLEGES IT MADE IN ITS BID ON ITEM NO. 12 WHICH WAS AWARDED TO IT ON SALE CONTRACT NO. WAS ACCEPTED AND ITEM NO. 12 WAS INCLUDED WITH OTHERS ON CONTRACT NO. " AND THAT ITS WORK COPY AND THAT OF ANOTHER DEALER WHO IS ITS JOINT VENTURE PARTNER INDICATE THE INTENTION TO BID $0.03 AND NOT $0.63. - AND A LUMP SUM TOTAL BID OF $32.48 WERE RECEIVED ON ITEM NO. 12. THAT THE ACQUISITION PRICE OF THE MATERIAL WAS$0.30 PER EACH UNIT. WHILE THERE IS NO INDICATION ON THE FACE OF THE CLAIMANT'S BID THAT THE "$0.63" WAS NOT ITS INTENDED BID. HE SHOULD HAVE BEEN PLACED ON NOTICE OF THE PROBABILITY OF AN ERROR SINCE THE BID WAS NOT ONLY OUT OF LINE WITH THE OTHER BIDS RECEIVED BUT ALSO EXCEEDED THE ACQUISITION COST APPRECIABLY.

B-142292, MAR. 24, 1960

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER (R11.2) DATED MARCH 14, 1960, WITH ENCLOSURES, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, CONCERNING AN ERROR WHICH COLUMBIA ELECTRONICS, LOS ANGELES, CALIFORNIA, ALLEGES IT MADE IN ITS BID ON ITEM NO. 12 WHICH WAS AWARDED TO IT ON SALE CONTRACT NO. N228S-43371.

THE NAVAL SUPPLY CENTER, DISPOSAL DEPARTMENT, OAKLAND, CALIFORNIA, BY INVITATION NO. B-91-60-228 ISSUED NOVEMBER 24, 1959, SOLICITED BIDS- - TO BE OPENED DECEMBER 10, 1959--- FOR THE PURCHASE FROM THE GOVERNMENT OF VARIOUS ITEMS OF SURPLUS MISCELLANEOUS ELECTRICAL AND ELECTRONICS MATERIAL AS LISTED THEREIN. IN RESPONSE, COLUMBIA ELECTRONICS SUBMITTED A BID OFFERING TO PURCHASE, AMONG OTHERS, ITEM NO. 12, AT A UNIT PRICE OF $0.63 FOR THE MATERIAL DESCRIBED THEREIN AS "RING AND SNAP ASSY.' CONSISTING OF 1,417 UNITS. ITS BID ON THAT ITEM, BEING THE HIGHEST, WAS ACCEPTED AND ITEM NO. 12 WAS INCLUDED WITH OTHERS ON CONTRACT NO. N228S-43371 AWARDED ON DECEMBER 16, 1959. THEREAFTER, IN TELCON OF DECEMBER 18, 1959, AND LETTER OF THE SAME DATE TO THE CONTRACTING OFFICER, THE PURCHASER ALLEGED THAT IT HAD MADE AN ERROR IN ITS BID ON ITEM NO. 12 AND STATED THAT THE CORRECT FIGURE ON THAT ITEM SHOULD READ "$0.03 AND NOT $0.63 AS INDICATED IN YOUR AWARD TO US," AND THAT ITS WORK COPY AND THAT OF ANOTHER DEALER WHO IS ITS JOINT VENTURE PARTNER INDICATE THE INTENTION TO BID $0.03 AND NOT $0.63. THE WORK SHEETS SUBSEQUENTLY SUBMITTED SUBSTANTIATE THE ERROR.

THE ABSTRACT OF BIDS SHOWS THAT, IN ADDITION TO THE BID OF COLUMBIA ELECTRONICS OF $0.63 PER EACH UNIT, 17 OTHER BIDS--- RANGING FROM $0.333 TO $0.01--- AND A LUMP SUM TOTAL BID OF $32.48 WERE RECEIVED ON ITEM NO. 12, AND THAT THE ACQUISITION PRICE OF THE MATERIAL WAS$0.30 PER EACH UNIT.

IN HIS STATEMENT OF FACTS CONCERNING THE SALE TRANSACTION, THE CONTRACTING OFFICER STATES THAT, WHILE THERE IS NO INDICATION ON THE FACE OF THE CLAIMANT'S BID THAT THE "$0.63" WAS NOT ITS INTENDED BID, HE SHOULD HAVE BEEN PLACED ON NOTICE OF THE PROBABILITY OF AN ERROR SINCE THE BID WAS NOT ONLY OUT OF LINE WITH THE OTHER BIDS RECEIVED BUT ALSO EXCEEDED THE ACQUISITION COST APPRECIABLY, AND HE THEREFORE RECOMMENDS THAT AUTHORITY BE GRANTED TO CANCEL THE AWARD OF ITEM NO. 12 TO COLUMBIA ELECTRONICS.

IN THESE CIRCUMSTANCES AND SINCE THE ERROR WAS ALLEGED PROMPTLY UPON RECEIPT OF NOTICE OF AWARD, ITEM NO. 12 MAY BE CANCELLED FROM CONTRACT NO. N228S-43371 WITHOUT ANY LIABILITY TO COLUMBIA ELECTRONICS. SEE OUR DECISION TO YOU, B-140695, DATED SEPTEMBER 18, 1959.