B-143517, JUL. 27, 1960

B-143517: Jul 27, 1960

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED JULY 14. THE CORPORATION'S BID ON ITEM NO. 2 WAS ACCEPTED. ON THE RECORD BEFORE US THERE IS NO BASIS FOR CHARGING THE GOVERNMENT CONTRACTING OFFICER WITH CONSTRUCTIVE NOTE OF THE PROBABILITY OF AN ERROR IN THE BID OF THE CHESAPEAKE AIRWAYS SERVICE CORPORATION PRIOR TO AWARD. IT IS OBSERVED THAT THE ORIGINAL ACQUISITION COST WAS $2.10 EACH FOR THE STRIPS WHICH ARE REPORTED TO BE UNUSED. ARE RETURNED HEREWITH.

B-143517, JUL. 27, 1960

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED JULY 14, 1960, WITH ENCLOSURES, FROM THE ACTING ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING OUR DECISION AS TO WHETHER THERE PROPERLY MAY BE DENIED THE RELIEF SOUGHT BY THE CHESAPEAKE AIRWAYS SERVICE CORPORATION UNDER DEPARTMENT OF THE NAVY CONTRACT NO. N204S-36256.

IN RESPONSE TO INVITATION NO. B-15-60-204 ISSUED ON JANUARY 22, 1960, BY THE NAVAL AIR STATION, PENSACOLA, FLORIDA, THE CHESAPEAKE AIRWAYS SERVICE CORPORATION SUBMITTED A BID OFFERING TO PURCHASE ITEM NO. 2 COVERING 3,366 ENGINE MOUNT STRIPS AT $0.11 EACH. THE CORPORATION'S BID ON ITEM NO. 2 WAS ACCEPTED, AMONG OTHERS, BY THE NAVAL AIR STATION ON FEBRUARY 18, 1960. BY LETTER DATED FEBRUARY 24, 1960, CHESAPEAKE ADVISED THE CONTRACTING OFFICER OF THE AIR STATION THAT AN ERROR HAD BEEN MADE IN ITS BID OF $0.11 EACH FOR ITEM NO. 2 IN THAT IT HAD INTENDED TO QUOTE A UNIT PRICE OF ONLY $0.011 FOR THE STRIPS. THE CORPORATION REQUESTS THAT ITS BID BE REDUCED TO THE INTENDED PRICE OR THAT THERE BE RETURNED TO IT THE SUM OF $74.05 RETAINED BY THE GOVERNMENT AS LIQUIDATED DAMAGES FOR THE CORPORATION'S FAILURE TO REMOVE THE PROPERTY COVERED BY ITEM NO. 2.

ON THE RECORD BEFORE US THERE IS NO BASIS FOR CHARGING THE GOVERNMENT CONTRACTING OFFICER WITH CONSTRUCTIVE NOTE OF THE PROBABILITY OF AN ERROR IN THE BID OF THE CHESAPEAKE AIRWAYS SERVICE CORPORATION PRIOR TO AWARD. WHILE THERE MAY BE A SUBSTANTIAL DISPARITY BETWEEN THE CORPORATION'S BID OF $0.11 EACH FOR ITEM NO. 2 AND THE TWO BIDS RECEIVED OF $0.003 AND $0.0021 EACH--- REPORTEDLY FAR LESS THAN SCRAP VALUE--- SUCH A DIFFERENTIAL, WITHOUT MORE, DOES NOT PROVIDE A BASIS FOR ESTABLISHING NOTICE OF PROBABLE ERROR IN VIEW OF THE WIDE VARIANCE IN BIDS GENERALLY RECEIVED IN SALES OF GOVERNMENT SURPLUS PROPERTY. ALSO, IT IS OBSERVED THAT THE ORIGINAL ACQUISITION COST WAS $2.10 EACH FOR THE STRIPS WHICH ARE REPORTED TO BE UNUSED, IN GOOD CONDITION, AND IN MANUFACTURER'S PACK, AS COMPARED WITH THE CORPORATION'S BID OF $0.11 EACH.

ACCORDINGLY, WE FIND NO LEGAL BASIS FOR GRANTING ANY RELIEF IN THE MATTER.

THE PAPERS, WITH THE EXCEPTION OF THE SUPPLY OFFICER'S MEMORANDUM OF JUNE 17, 1960, ARE RETURNED HEREWITH.