B-143910, SEP. 27, 1960

B-143910, SEP. 27, 1960

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 6, 1960, WITH ENCLOSURES, FROM THE DEPUTY QUARTERMASTER GENERAL REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR A AND M TRADING COMPANY ALLEGES IT MADE IN ITEM 89 ON SPOT BID SALE NO. 09-030 S-60-16.

BY THE INVITATION THE ATLANTA GENERAL DEPOT, FOREST PARK, GEORGIA, REQUESTED BIDS--- TO BE OPENED MAY 25, 1960, ON 209 MISCELLANEOUS ITEMS. THE INVITATION FOR BIDS PROVIDED THAT "THE ANNOUNCEMENT OF THE HIGHEST BID DOES NOT CONSTITUTE AN AWARD AS THE BID CARDS ON EACH ITEM WILL BE RECHECKED AND VERIFIED AS TO CORRECTNESS.' IT ALSO PROVIDED THAT SUCCESSFUL BIDDERS WOULD BE NOTIFIED BY WRITTEN NOTICE OF AWARD AS SOON AS THE RECAPITULATION OF ALL BIDS HAD BEEN COMPLETED. A AND M TRADING COMPANY BID $993.31 FOR ITEM 89. THE NEXT HIGH BID FOR THIS ITEM WAS $197.97. ON JUNE 2, 1960, A REPRESENTATIVE OF THE COMPANY TELEPHONED THE PROPERTY DISPOSAL OFFICE AND STATED THAT HE WAS IN RECEIPT OF THE SUCCESSFUL BIDDERS LIST COVERING THE SALE AND HAD NOTICED THAT HIS COMPANY WAS THE HIGH BIDDER ON ITEM NO. 89. HE REQUESTED THAT HE BE ALLOWED TO WITHDRAW HIS BID AS HE HAD OVERLOOKED THE CONDITION OF THE PROPERTY DESCRIBED IN THE SALES CATALOG AS USED" AND HAD SUBMITTED HIS BID ON THE BASIS OF "UNUSED" PROPERTY. THE COMPANY CONFIRMED THE ALLEGED MISTAKE BY LETTER OF JUNE 2, 1960. HOWEVER, NOTICE OF AWARD WAS MAILED TO THE COMPANY ON JUNE 3, 1960. THUS, IT APPEARS THAT THE GOVERNMENT HAD NOTICE OF THE ERROR PRIOR TO THE AWARD OF THE CONTRACT. UNDER SUCH CIRCUMSTANCES THE ACCEPTANCE OF THE BID DID NOT CONSUMMATE A VALID AND BINDING CONTRACT. SEE 36 COMP. GEN. 441 AND CASES THERE CITED.

IN VIEW THEREOF THE NOTICE OF AWARD SHOULD BE CANCELED.