B-142910, MAY 24, 1960

B-142910: May 24, 1960

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED MAY 16. IN VIEW OF AN ERROR ALLEGED BY THE CORPORATION TO HAVE BEEN MADE IN THE RELATED BIDS. TWO DAYS AFTER THE NOTICE OF AWARD WAS MAILED. THE CORPORATION CALLED THE CONTRACTING OFFICER AND ADVISED THAT THE AWARD WAS NOT UNDERSTOOD SINCE IT HAD NOT BID ON ITEM NO. 140. IN THAT ITS PRICE ON ITEM NO. 140 WAS INTENDED FOR ITEM NO. 149 AND FURNISHED AN EXTRA COPY OF THE INVITATION. FIVE OTHER BIDS RANGING FROM $0.26 TO $0.051 EACH WERE RECEIVED FOR ITEM NO. 140 AND THE ORIGINAL ACQUISITION COST OF THE ASSEMBLIES WAS $2.80 EACH. SINCE THE BID OF $2.65 OF MORRIS BROTHERS AUTO TRUCKS AND PARTS CORPORATION FOR THIS ITEM REPRESENTS A PRICE WHICH IS ALMOST 95 PERCENT OF THE ACQUISITION COST OF EACH ASSEMBLY.

B-142910, MAY 24, 1960

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED MAY 16, 1960, WITH ENCLOSURES, FORWARDED IN BEHALF OF THE ASSISTANT SECRETARY OF THE ARMY FOR LOGISTICS, REQUESTING OUR DECISION AS TO WHETHER THERE MAY BE CANCELLED AN AWARD OF CONTRACT MADE TO MORRIS BROTHERS AUTO TRUCKS AND PARTS CORPORATION UNDER SPOT BID SALE NO. 41-117-S-60-27, IN VIEW OF AN ERROR ALLEGED BY THE CORPORATION TO HAVE BEEN MADE IN THE RELATED BIDS.

THE CONTRACT RESULTED WHEN THE ARMY ORDNANCE CORPS, RED RIVER ARSENAL, TEXARKANA, TEXAS, FORWARDED A NOTICE DATED MARCH 8, 1960, TO THE CORPORATION OF THE ACCEPTANCE OF ITS MAILED BID, UNDER THE SPOT BID SALE, FOR ITEM NO. 140, COVERING 434 UNUSED HOSE ASSEMBLIES AT $2.65 EACH, FOR FOR A TOTAL PRICE OF $1,150.10. TWO DAYS AFTER THE NOTICE OF AWARD WAS MAILED, THE CORPORATION CALLED THE CONTRACTING OFFICER AND ADVISED THAT THE AWARD WAS NOT UNDERSTOOD SINCE IT HAD NOT BID ON ITEM NO. 140, BUT ONLY ON ITEMS NOS. 27, 149 AND 170. BY LETTER DATED MARCH 10, 1960, MORRIS BROTHERS AUTO TRUCKS AND PARTS CORPORATION ALLEGED AN ERROR IN ITS BID, IN THAT ITS PRICE ON ITEM NO. 140 WAS INTENDED FOR ITEM NO. 149 AND FURNISHED AN EXTRA COPY OF THE INVITATION, WHICH IT HAD USED AS A WORKSHEET, AND ITS WRITE-UP SHEET TO SUBSTANTIATE ITS ALLEGATION. THE CORPORATION SEEKS RELEASE FROM THE CONTRACT.

FIVE OTHER BIDS RANGING FROM $0.26 TO $0.051 EACH WERE RECEIVED FOR ITEM NO. 140 AND THE ORIGINAL ACQUISITION COST OF THE ASSEMBLIES WAS $2.80 EACH. SINCE THE BID OF $2.65 OF MORRIS BROTHERS AUTO TRUCKS AND PARTS CORPORATION FOR THIS ITEM REPRESENTS A PRICE WHICH IS ALMOST 95 PERCENT OF THE ACQUISITION COST OF EACH ASSEMBLY, 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.

IN VIEW OF THE FOREGOING, AND SINCE THE WORKSHEETS FURNISHED BY THE CORPORATION APPEAR TO COMPLETELY SUBSTANTIATE THAT AN ERROR WAS MADE IN THE MANNER ALLEGED, THE CONTRACT MAY BE CANCELLED.

THE PAPERS, WITH THE EXCEPTION OF THE REPORT OF THE QUARTERMASTER GENERAL AND THE CORPORATION'S LETTER DATED MARCH 10, 1960, AND ENCLOSURES, ARE RETURNED HEREWITH.