B-146317, JUL. 24, 1961

B-146317: Jul 24, 1961

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED JUNE 30. PROPERLY MAY BE CANCELED IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID UPON WHICH THE CONTRACT WAS AWARDED. IT IS REPORTED THAT THE H. WHICH THE COMPANY STATES ACTUALLY WAS THE INTENDED BID FOR ITEM NO. 102 INSTEAD OF ITEM NO. 101. WE THINK THE CONFLICT BETWEEN THE INFORMATION IN THE BID AND IN THE LETTER AS TO THE IDENTITY OF THE TIME ON WHICH IT WAS BIDDING SHOULD HAVE PLACED THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF AN ERROR IN THE COMPANY'S BID AND. THE COMPANY SHOULD HAVE BEEN AFFORDED AN OPPORTUNITY TO VERIFY ITS BID PRIOR TO ACCEPTANCE. OUR OFFICE WILL HAVE NO OBJECTION TO A CANCELLATION OF CONTRACT NO.

B-146317, JUL. 24, 1961

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED JUNE 30, 1961, WITH ENCLOSURES, FILE R11.4, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING OUR DECISION AS TO WHETHER NAVY SALE CONTRACT NO. N63067-5266, DATED JUNE 13, 1961, PROPERLY MAY BE CANCELED IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID UPON WHICH THE CONTRACT WAS AWARDED.

IT IS REPORTED THAT THE H. LEACH MACHINERY COMPANY, PROVIDENCE, RHODE ISLAND, FORWARDED A LETTER DATED MAY 8, 1961, TOGETHER WITH ITS BID OF THE SAME DATE FOR THE PURCHASE OF VARIOUS ITEMS OF MACHINE TOOLS AS SET FORTH IN INVITATION NO. B-188-61, ISSUED BY THE CONSOLIDATED SURPLUS SALES OFFICE, NORFOLK, VIRGINIA. THE RECORD SHOWS THAT THE COMPANY HAD SUBMITTED A HIGH BID OF $2,222 ON THE BID FORM FOR ITEM NO. 101, COVERING ONE DRILLING, REAMING AND TAPPING MACHINE. HOWEVER, THE REFERRED-TO LETTER ACCOMPANYING ITS BID SHOWED THE BID OF $2,222 AFTER ITEM NO. 102, WHICH THE COMPANY STATES ACTUALLY WAS THE INTENDED BID FOR ITEM NO. 102 INSTEAD OF ITEM NO. 101, AS SHOWN ON THE BID FORM. UNDER THE CIRCUMSTANCES, WE THINK THE CONFLICT BETWEEN THE INFORMATION IN THE BID AND IN THE LETTER AS TO THE IDENTITY OF THE TIME ON WHICH IT WAS BIDDING SHOULD HAVE PLACED THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF AN ERROR IN THE COMPANY'S BID AND, THEREFORE, THE COMPANY SHOULD HAVE BEEN AFFORDED AN OPPORTUNITY TO VERIFY ITS BID PRIOR TO ACCEPTANCE.

IN VIEW OF THE FOREGOING, AND SINCE THERE CAN BE LITTLE OR NO DOUBT THAT THE H. LEACH MACHINERY COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED,OUR OFFICE WILL HAVE NO OBJECTION TO A CANCELLATION OF CONTRACT NO. N63067- 5266, WITHOUT LIABILITY TO THE COMPANY.

THE PAPERS, WITH THE EXCEPTION OF THE STATEMENT AND RECOMMENDATION OF THE CONTRACTING OFFICER DATED JUNE 20, 1961, ARE RETURNED HEREWITH.