B-145192, MAR. 16, 1961

B-145192: Mar 16, 1961

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INVITATION NO. 1-3256B1 WAS ISSUED ON NOVEMBER 21. THE FOLLOWING BIDS RECEIVED IN RESPONSE TO THE INVITATION WERE OPENED ON DECEMBER 7. WAS AWARDED CONTRACT NO. CLAIMING THAT THE UNIT PRICE SHOULD HAVE BEEN $256.45 INSTEAD OF $189.55. THE LETTER EXPLAINS THAT THE PRICE OF THE REQUIRED TRANSFORMER IS LISTED IN THE MANUFACTURER'S CATALOG AT $278.75 AND THE PRICE TO BE QUOTED IS LESS 8 PERCENT. A DISCOUNT OF 32 PERCENT WAS ERRONEOUSLY APPLIED TO THE LIST PRICE. WE THINK THAT THE CONTRACTING OFFICER SHOULD HAVE SOUGHT VERIFICATION OF THE LOW BID. WE CAN DERIVE THE PRICE THAT THE CONTRACTOR APPARENTLY WOULD HAVE SUBMITTED BUT FOR THE ERROR.

B-145192, MAR. 16, 1961

TO ADMINISTRATOR, FEDERAL AVIATION AGENCY:

WE REFER TO A LETTER OF FEBRUARY 27, 1961, WITH ENCLOSURES, FROM YOUR DIRECTOR, BUREAU OF FACILITIES AND MATERIEL, REQUESTING A DECISION AS TO WHETHER RELIEF MAY BE GRANTED FOR AN ERROR IN BID ALLEGED BY ELECTRONIC WHOLESALERS, INC., AFTER AWARD OF CONTRACT NO. FA-1974.

INVITATION NO. 1-3256B1 WAS ISSUED ON NOVEMBER 21, 1960, CALLING FOR VARIOUS QUANTITIES OF TRANSFORMERS, POTENTIAL, PORTABLE, WESTON INSTRUMENT MODEL 311, TYPE 2, OR EQUAL. THE FOLLOWING BIDS RECEIVED IN RESPONSE TO THE INVITATION WERE OPENED ON DECEMBER 7, 1960:

ELECTRONIC ELECTRO-TECH DAYSTROM, INC.

WHOLESALERS, INC. EQUIPMENT CO. WESTERN INSTRS.DIV.

2 PERCENT DISCOUNT 1 PERCENT DISCOUNT 1/10 OF 1 PERCENT

20 CALENDAR 10 CALENDAR DISCOUNT 10

DAYS DAYS CALENDAR DAYS

------------------ -------------------- --------------- --- A. 10 EACH $189.55 $255.40 $257.45 B. 20 EACH 189.55 250.00

257.45 C. 40 EACH 178.40 235.00 225.00

ON DECEMBER 27, 1960, ELECTRONIC WHOLESALERS, INC., WAS AWARDED CONTRACT NO. FA-1974 FOR 17 WESTERN TRANSFORMERS AT A UNIT PRICE OF $189.55.

ON JANUARY 9, 1961, THE CONTRACTOR TELEPHONED THE CONTRACTING OFFICER, ALLEGING AN ERROR IN HIS BID. HE FILED A LETTER OF THE SAME DATE WITH PRICING SCHEDULES, CLAIMING THAT THE UNIT PRICE SHOULD HAVE BEEN $256.45 INSTEAD OF $189.55. THE LETTER EXPLAINS THAT THE PRICE OF THE REQUIRED TRANSFORMER IS LISTED IN THE MANUFACTURER'S CATALOG AT $278.75 AND THE PRICE TO BE QUOTED IS LESS 8 PERCENT, OR A UNIT PRICE OF $256.45. HOWEVER, DUE TO USING A "NOT-UP-TO-DATE" CATALOG, A DISCOUNT OF 32 PERCENT WAS ERRONEOUSLY APPLIED TO THE LIST PRICE.

THE CONTRACTOR SHIPPED THE UNITS ON JANUARY 31, 1961, BILLED AT THE BID PRICE OF $189.55. THE ADMINISTRATIVE OFFICE REPORTS THAT THE WESTERN TRANSFORMER SELLS FOR MORE THAN THE BID PRICE OFFERED BY THE CONTRACTORS.

ELECTRONIC WHOLESALERS, INC., OFFERED A PRICE ON THE WESTERN TRANSFORMER APPROXIMATELY 25 PERCENT LOWER THAN THAT OFFERED BY THE BID OF THE MANUFACTURER. WE THINK THAT THE CONTRACTING OFFICER SHOULD HAVE SOUGHT VERIFICATION OF THE LOW BID. THE FACTS INDICATE THAT THE CONTRACTOR DID USE AN IMPROPER DISCOUNT SCHEDULE, AND FROM THE CATALOGS FURNISHED, WE CAN DERIVE THE PRICE THAT THE CONTRACTOR APPARENTLY WOULD HAVE SUBMITTED BUT FOR THE ERROR. UNDER THESE CIRCUMSTANCES, THE PRICE DUE THE CONTRACTOR ON EACH UNIT FURNISHED MAY BE INCREASED IN AN AMOUNT NOT TO EXCEED THE PRICE OFFERED BY THE SECOND LOW BIDDER, NAMELY $255.40 FOR 10 UNITS AND $250.40 FOR 7 UNITS.