B-146297, JUL. 14, 1961

B-146297: Jul 14, 1961

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED JUNE 30. IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID UPON WHICH THE CONTRACT WAS AWARDED. WHILE THERE IS A SUBSTANTIAL DISPARITY BETWEEN RECREATIONAL'S BID OF $325 FOR ITEM NO. 106 AND THE 13 OTHER BIDS RECEIVED FOR THE ITEM. THE FACT THAT THERE WAS REALIZED FROM PREVIOUS SALES OF RAINCOATS IN COMPARABLE CONDITION AN ESTIMATED RETURN OF FROM $0.85 TO $1 EACH MAY NOT BE ACCEPTED AS ESTABLISHING SUCH NOTICE IN A SALE OF THIS KIND. WHICH WERE DESCRIBED AS "USED-GOOD-FAIR" WAS $561.75 FOR THE LOT. ARE RETURNED HEREWITH.

B-146297, JUL. 14, 1961

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED JUNE 30, 1961, WITH ENCLOSURES, FILE RI1.4, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING OUR DECISION AS TO WHETHER THERE PROPERLY MAYBE GRANTED THE RELIEF SOUGHT BY RECREATIONAL EQUIPMENT INC., SEATTLE, WASHINGTON, NAMELY, CANCELLATION OF NAVY SALE CONTRACT NO. N63118S-53016, DATED MAY 19, 1961, IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID UPON WHICH THE CONTRACT WAS AWARDED.

ON THE RECORD BEFORE US WE CANNOT AGREE THAT THERE EXISTED ANY BASIS FOR CHARGING THE GOVERNMENT CONTRACTING OFFICER WITH CONSTRUCTIVE NOTICE OF THE PROBABILITY OF AN ERROR IN THE HIGH BID OF $325 WHICH RECREATIONAL EQUIPMENT INC. SUBMITTED FOR THE ONE LOT OF APPROXIMATELY 105 RAINCOATS COVERED BY ITEM NO. 106 OF INVITATION NO. B-149-61 63118, ISSUED BY THE CONSOLIDATED SURPLUS SALES OFFICE, CLEAR FIELD, OGDEN, UTAH. WHILE THERE IS A SUBSTANTIAL DISPARITY BETWEEN RECREATIONAL'S BID OF $325 FOR ITEM NO. 106 AND THE 13 OTHER BIDS RECEIVED FOR THE ITEM, WHICH RANGED FROM $10 TO $131.88 A LOT, SUCH DIFFERENCE, WITHOUT MORE, DOES NOT PROVIDE A BASIS FOR ESTABLISHING NOTICE OF PROBABLE ERROR IN VIEW OF THE WIDE VARIANCE IN BIDS GENERALLY RECEIVED IN SALES OF GOVERNMENT SURPLUS PROPERTY. LIKEWISE, THE FACT THAT THERE WAS REALIZED FROM PREVIOUS SALES OF RAINCOATS IN COMPARABLE CONDITION AN ESTIMATED RETURN OF FROM $0.85 TO $1 EACH MAY NOT BE ACCEPTED AS ESTABLISHING SUCH NOTICE IN A SALE OF THIS KIND. MOREOVER, CONSIDERING THAT THE TOTAL ACQUISITION COST FOR THE RAINCOATS, WHICH WERE DESCRIBED AS "USED-GOOD-FAIR" WAS $561.75 FOR THE LOT, THE RATE OF RETURN AS REFLECTED BY THE HIGH BID OF $325 MAY NOT BE HELD TO BE EXCESSIVE. UNDER THE CIRCUMSTANCES, WE MUST CONCLUDE THAT THE CONTRACTING OFFICER'S ACCEPTANCE OF THE BID CONSUMMATED A VALID AND BINDING CONTRACT WHICH FIXED THE RIGHTS AND LIABILITIES OF THE PARTIES.

ACCORDINGLY, WE FIND NO LEGAL BASIS FOR GRANTING ANY RELIEF IN THE MATTER.

THE PAPERS, WITH THE EXCEPTION OF THE STATEMENT OF THE CONTRACTING OFFICER DATED JUNE 12, 1961, ARE RETURNED HEREWITH.