B-145852, MAY 25, 1961

B-145852: May 25, 1961

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED MAY 5. ALL OF THESE BIDS WERE SUBMITTED IN ONE ENVELOPE ON WHICH ALL THREE OF THE INVITATION NUMBERS WERE PLACED. A CHECK IN THE AMOUNT OF THE DEPOSIT WAS ENCLOSED IN THE ENVELOPE WITH THE THREE BIDS. B-140-61-63067 WERE IN THE AMOUNTS OF $6. NONE OF THE BIDS SUBMITTED BY EX-CELL-O CORPORATION WAS THE HIGH BID ON THE ITEM INTENDED. WITH THE LETTER THERE WERE TRANSMITTED PAPERS SHOWING THAT EX-CELL-O CORPORATION INTENDED TO BID ON ITEM NO. 58 OF INVITATION NO. ARE RETURNED HEREWITH.

B-145852, MAY 25, 1961

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED MAY 5, 1961, FILE R11.2, WITH ENCLOSURES, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO THE REQUEST OF EX-CELL-O CORPORATION, LIMA, OHIO, FOR CANCELLATION OF CONTRACT NO. N63067-3185 DATED MARCH 13, 1961, COVERING THE PURCHASE OF A SURPLUS DUOMATIC LATHE.

ON FEBRUARY 6, 1961, THE CONSOLIDATED SURPLUS SALES OFFICE, NORFOLK, VIRGINIA, ISSUED INVITATIONS FOR BIDS NOS. B-137-61-63067, B-139-61 63067 AND B-140-61-63067, BIDS UNDER THE FIRST INVITATION TO BE OPENED FEBRUARY 27, 1961, AND BIDS UNDER THE LAST TWO INVITATIONS TO BE OPENED FEBRUARY 28, 1961. IN RESPONSE TO THE INVITATIONS, EX-CELL-O CORPORATION SUBMITTED BIDS ON ITEM NO. 58 OF INVITATION NO. B-137-61 63067 (IN THE AMOUNT OF $2,312.80), ITEM NO. 26 OF INVITATION NO. B 139-61-63067 AND ITEMS NOS. 123 AND 214 OF INVITATION NO. B-140-61 63067. ALL OF THESE BIDS WERE SUBMITTED IN ONE ENVELOPE ON WHICH ALL THREE OF THE INVITATION NUMBERS WERE PLACED. ON THE BOTTOM OF THE LAST PAGE OF THE BID ON INVITATION NO. B-140-61-63067, THE BIDDER PLACED A TABULATION OF THE FOUR ITEMS FROM ALL THREE BIDS WITH PRICES TOTALING $5,708.20 AND COMPUTATION OF THE 20 PERCENT DEPOSIT THEREON IN THE AMOUNT OF $1,141.64. THE TABULATION DID NOT SPECIFICALLY SHOW THAT IT COVERED MORE THAN ONE BID--- A FACT WHICH CONTRIBUTED TO THE SUBSEQUENT MISUNDERSTANDING. A CHECK IN THE AMOUNT OF THE DEPOSIT WAS ENCLOSED IN THE ENVELOPE WITH THE THREE BIDS. THE HIGH BIDS RECEIVED FROM OTHER BIDDERS ON ITEM NO. 58 OF INVITATION NO. B-137-61 -63067 AND ITEM NO. 58 OF INVITATION NO. B-140-61-63067 WERE IN THE AMOUNTS OF $6,777.77 AND $1,219, RESPECTIVELY.

NONE OF THE BIDS SUBMITTED BY EX-CELL-O CORPORATION WAS THE HIGH BID ON THE ITEM INTENDED. HOWEVER, SEEING THE REFERRED-TO TABULATION ON INVITATION NO. B-140-61-63067 LISTING ALL OF THE ITEMS ON WHICH EX CELL-O CORPORATION HAD SUBMITTED BIDS UNDER THE THREE INVITATIONS, THE CONTRACTING OFFICER ASSUMED THAT THE BID ON ITEM NO. 58 COVERED ITEM NO. 58 OF INVITATION NO. B-140-61-63067 AND ON MARCH 13, 1961, MADE THE AWARD ON THAT ITEM TO EX-CELL-O CORPORATION AS HIGH BIDDER IN THE AMOUNT OF $2,312.80 (CONTRACT NO. N63067-3185).

IN ITS LETTER DATED MARCH 16, 1961, EX-CELL-O CORPORATION REQUESTED THAT THE CONTRACT BE CANCELED AND THE BID DEPOSIT RETURNED SINCE THE CONTRACTING OFFICER HAD MISUNDERSTOOD ITS BID. WITH THE LETTER THERE WERE TRANSMITTED PAPERS SHOWING THAT EX-CELL-O CORPORATION INTENDED TO BID ON ITEM NO. 58 OF INVITATION NO. B-137-61-63067 AND NOT ON ITEM NO. 58 OF INVITATION NO. B-140-61-63067.

IN VIEW OF THE FACTS OF THIS MATTER AS REPORTED AND SHOWN BY THE FILE, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT EX-CELL-O CORPORATION DID NOT INTEND TO BID ON ITEM NO. 58 OF INVITATION NO. B 140-61-63067 AND DID NOT IN FACT SUBMIT A BID ON THAT ITEM, THE AWARD HAVING BEEN MADE ON THAT ITEM BECAUSE OF A MISUNDERSTANDING BY THE CONTRACTING OFFICER. THEREFORE, THE CONTRACT MAY BE CANCELED WITHOUT LIABILITY ON THE PART OF EX-CELL-O CORPORATION.

THE PAPERS TRANSMITTED WITH THE LETTER OF MAY 5, 1961, ARE RETURNED HEREWITH.