B-145953, JUN. 13, 1961

B-145953: Jun 13, 1961

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED MAY 24. IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE RELATED BID. IN THAT A PRICE OF $27.27 WAS INTENDED INSTEAD OF $127.27 AND REQUESTED RELIEF. IT IS NOTED THAT FIVE OTHER BIDS WERE RECEIVED FOR ITEM NO. 2. RANGING FROM $41.08 TO $16.50 AND THE ORIGINAL ACQUISITION COST WAS $115. SINCE THE BID OF WESTERN HOIST FOR ITEM NO. 2 WAS IN EXCESS OF THE ORIGINAL ACQUISITION COST FOR THE HOIST. WE CONCUR IN THE OPINION OF THE SALES CONTRACTING OFFICER THAT THE PROBABILITY OF MISTAKE SHOULD HAVE BEEN OBSERVED AT THE TIME OF AWARD. THE CORPORATION SHOULD HAVE BEEN REQUESTED TO VERIFY ITS BID PRICE AS TO THIS ITEM PRIOR TO ITS ACCEPTANCE.

B-145953, JUN. 13, 1961

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED MAY 24, 1961, WITH ENCLOSURES, FILE R11.3, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING OUR DECISION AS TO WHETHER ITEM NO. 2 PROPERLY MAY BE CANCELED FROM CONTRACT NO. N63066S-887, IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE RELATED BID.

THE CONTRACT RESULTED WHEN THE NAVY CONSOLIDATED SURPLUS SALES OFFICE, NEWPORT, RHODE ISLAND, ACCEPTED A BID ON MARCH 29, 1961, WHICH THE WESTERN HOIST AND CRANE CORPORATION SUBMITTED FOR THE PURCHASE OF ITEM NO. 2, COVERING ONE 2-TON HIGH SPEED HOIST FOR $127.27 AND ITEM NO. 38, COVERING ONE 12,000-POUND CAPACITY HOIST FOR $427.27. BY LETTER DATED APRIL 4, 1961, WESTERN HOIST ADVISED THE NAVY SALES OFFICE THAT A TYPOGRAPHICAL ERROR HAD BEEN MADE IN ITS BID ON ITEM NO. 2, IN THAT A PRICE OF $27.27 WAS INTENDED INSTEAD OF $127.27 AND REQUESTED RELIEF. IT IS NOTED THAT FIVE OTHER BIDS WERE RECEIVED FOR ITEM NO. 2, RANGING FROM $41.08 TO $16.50 AND THE ORIGINAL ACQUISITION COST WAS $115.

SINCE THE BID OF WESTERN HOIST FOR ITEM NO. 2 WAS IN EXCESS OF THE ORIGINAL ACQUISITION COST FOR THE HOIST, WE CONCUR IN THE OPINION OF THE SALES CONTRACTING OFFICER THAT THE PROBABILITY OF MISTAKE SHOULD HAVE BEEN OBSERVED AT THE TIME OF AWARD. THIS BEING THE CASE, THE CORPORATION SHOULD HAVE BEEN REQUESTED TO VERIFY ITS BID PRICE AS TO THIS ITEM PRIOR TO ITS ACCEPTANCE.

ACCORDINGLY, ITEM NO. 2 MAY BE CANCELED FROM CONTRACT NO. N63066S' 887.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT OF FACTS, ARE RETURNED HEREWITH.