B-146279, AUG. 14, 1961

B-146279: Aug 14, 1961

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED JUNE 28. TO HAVE BEEN MADE IN ITS BID UPON WHICH CONTRACT NO. DA 36-243-QM/CTM/- 10117-E-61 WAS AWARDED. WHICH WAS ISSUED ON MARCH 22. SINCE THE SCHIFFLI CORPORATION'S BID WAS THE LOWEST BID RECEIVED . - AN AWARD OF CONTRACT WAS MADE TO THE CORPORATION ON APRIL 6. THE SCHIFFLI CORPORATION ADVISED THE GOVERNMENT CONTRACTING OFFICER THAT ITS BID WAS COMPUTED ON A STITCH COUNT BASIS OF ONLY 3. - WHEREAS IT LATER WAS LEARNED THE SPECIFICATIONS ACTUALLY REQUIRED 4. THERE IS SHOWN ON PAGE NO. 6 OF THE CONTINUATION SHEETS A REFERENCE TO DRAWING NO. IT IS OBVIOUS THAT THERE EXISTED A DEFINITE DISCREPANCY BETWEEN THE INVITATION AND THE APPLICABLE DRAWING AS TO THE STITCH REQUIREMENTS FOR THE INSIGNIAS.

B-146279, AUG. 14, 1961

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED JUNE 28, 1961, WITH ENCLOSURES, FORWARDED IN BEHALF OF THE ASSISTANT SECRETARY OF THE ARMY FOR INSTALLATIONS AND LOGISTICS BY THE OFFICE OF THE DEPUTY CHIEF OF STAFF FOR LOGISTICS, REQUESTING OUR DECISION AS TO THE APPROPRIATE ACTION TOBE TAKEN REGARDING AN ERROR ALLEGED BY THE ACE SCHIFFLI EMBROIDERY COMPANY, INC., TO HAVE BEEN MADE IN ITS BID UPON WHICH CONTRACT NO. DA 36-243-QM/CTM/- 10117-E-61 WAS AWARDED.

IN RESPONSE TO INVITATION NO. QM-/CTM/-36-243-61-711, AS AMENDED, WHICH WAS ISSUED ON MARCH 22, 1961, BY THE MILITARY CLOTHING AND TEXTILE SUPPLY AGENCY, PHILADELPHIA, THE ACE SCHIFFLI EMBROIDERY COMPANY, INC. SUBMITTED A BID DATED APRIL 4, 1961, OFFERING TO FURNISH, IN ACCORDANCE WITH APPLICABLE SPECIFICATIONS, SCHEDULES, DRAWINGS, ETC., 380,000 INSIGNIAS, S.S. 7TH INF.DIV., ETC., AT $0.0414 EACH, OR FOR A TOTAL PRICE OF $15,732. SINCE THE SCHIFFLI CORPORATION'S BID WAS THE LOWEST BID RECEIVED --- TEN OTHERS RANGED FROM $0.0459 TO $0.0825 EACH--- AN AWARD OF CONTRACT WAS MADE TO THE CORPORATION ON APRIL 6, 1961. SUBSEQUENTLY, THE SCHIFFLI CORPORATION ADVISED THE GOVERNMENT CONTRACTING OFFICER THAT ITS BID WAS COMPUTED ON A STITCH COUNT BASIS OF ONLY 3,434 STITCHES--- APPLICABLE DRAWING SHOWED 3,430 STITCHES WITH PUNCHROLL AT 3,434 STITCHES--- WHEREAS IT LATER WAS LEARNED THE SPECIFICATIONS ACTUALLY REQUIRED 4,324 STITCHES. THE ERRONEOUS COMPUTATION RESULTED IN A REQUEST FROM THE SCHIFFLI CORPORATION FOR AN INCREASE IN THE CONTRACT UNIT PRICE FROM $0.0414 TO $0.0496 FOR THE INSIGNIAS, WHICH WOULD RESULT IN A TOTAL INCREASE OF $3,116.

AN EXAMINATION OF CONTRACT NO. DA-36-243-QM/CTM/-10117-E-61 SHOWS THAT THERE APPEARS ON THE SCHEDULE, WHICH FORMED A PART OF THE INVITATION FOR BID, THE NOTATION,"STITCH COUNT-4324.' ALSO, THERE IS SHOWN ON PAGE NO. 6 OF THE CONTINUATION SHEETS A REFERENCE TO DRAWING NO. A-1-83, DATED MAY 16, 1958, AS BEING INCLUDED IN THE FEDERAL STANDARD SPECIFICATION REQUIREMENTS, AND A PHOTOSTATIC COPY OF THIS DRAWING IN THE FILE SETS FORTH A STITCH REQUIREMENT OF 3,430 STITCHES. THUS, IT IS OBVIOUS THAT THERE EXISTED A DEFINITE DISCREPANCY BETWEEN THE INVITATION AND THE APPLICABLE DRAWING AS TO THE STITCH REQUIREMENTS FOR THE INSIGNIAS. SINCE IT IS, OF COURSE, THE SOLE RESPONSIBILITY OF GOVERNMENT CONTRACTING OFFICIALS TO SEE THAT ALL REQUIREMENTS ARE CLEARLY AND CONCISELY SET FORTH IN THE SPECIFICATIONS, DRAWINGS, ETC., AND SINCE AN EXAMINATION OF THE WORKSHEET OF THE SCHIFFLI CORPORATION CLEARLY SHOWS THAT THE CORPORATION BASICALLY RELIED UPON THE STITCH REQUIREMENTS SHOWN ON DRAWING NO. A-1-83 IN COMPUTING ITS BID, WHICH REQUIREMENT WAS IN ERROR, WE BELIEVE THERE WOULD BE LITTLE, IF ANY, LEGAL JUSTIFICATION FOR HOLDING THE CORPORATION TO THE PRICE SET FORTH IN THE CONTRACT. 37 COMP. GEN. 249, 251.

ACCORDINGLY, CONTRACT NO. DA-36-243-QM/CTM/-10117-E-61, MAY BE AMENDED TO REFLECT A UNIT PRICE FOR THE INSIGNIAS OF $0.0459, WHICH REPRESENTS THE AMOUNT OF THE NEXT LOW BID. 37 COMP. GEN. 685.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING PAYMENT OF THE ADDITIONAL AMOUNT AUTHORIZED HEREIN.

THE PAPERS, WITH THE EXCEPTION OF THE REPORT AND RECOMMENDATION OF THE CONTRACTING OFFICER DATED MAY 5, 1961, AND ONE SET OF THE PHOTOSTATIC COPIES OF THE CONTRACT, ABSTRACT OF BIDS, ..END :