B-147317, DEC. 6, 1961

B-147317: Dec 6, 1961

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO LETTER OF SEPTEMBER 28. THE CORRECT EXTENDED PRICES SHOULD HAVE BEEN $2. AWARD OF A CONTRACT WITH THE CORRECTED EXTENDED PRICES WAS MADE JULY 24. THE REQUEST FOR RELIEF WAS SUPPORTED BY COPIES OF CERTAIN PAPERS WHICH SUBSTANTIATE THE FACT THAT THE ERROR WAS MADE AS ALLEGED. IT WAS CONCLUDED BY THE ADMINISTRATIVE OFFICE THAT FAILURE TO DETECT THE ERRORS WAS AN OVERSIGHT ON THE PART OF THE GOVERNMENT REPRESENTATIVES. THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE MISTAKE ON BOTH ITEMS WAS MADE. VERIFICATION OF THE BID SHOULD HAVE BEEN REQUESTED BEFORE ACCEPTANCE. CANCELLATION OF THE CONTRACT IS AUTHORIZED.

B-147317, DEC. 6, 1961

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER OF SEPTEMBER 28, 1961, WITH ENCLOSURES, FILE REFERENCE QMGGC, FROM THE OFFICE OF THE QUARTERMASTER GENERAL, REQUESTING A DECISION AS TO WHETHER THERE MAY BE GRANTED THE RELIEF REQUESTED BY SHENCO SALES COMPANY IN CONNECTION WITH ITS CONTRACT NO. DA (S/-42-015-AVI -111, ISSUED BY THE SEATTLE CONSOLIDATED SURPLUS SALES OFFICE.

BY INVITATION NO. 42-015-S-61-53, THE ABOVE AGENCY SOUGHT OFFERS TO PURCHASE CERTAIN SURPLUS PROPERTY IDENTIFIED AS MISCELLANEOUS AUTOMOTIVE PARTS AND EQUIPMENT. THE CONTRACTOR SUBMITTED THE HIGHEST BID ON ITEMS NOS. 82 AND 83, QUOTING A UNIT PRICE OF ?162 ON EACH LOT, AND EXTENDED THE PRICES THEREFOR IN THE RESPECTIVE AMOUNT OF $323.07 AND $324.94. BASED ON THE UNIT PRICE QUOTED AND THE LISTED QUANTITIES IN THE INVITATION, THE CORRECT EXTENDED PRICES SHOULD HAVE BEEN $2,230.60 AND $3,249.40. AWARD OF A CONTRACT WITH THE CORRECTED EXTENDED PRICES WAS MADE JULY 24, 1961.

UPON RECEIPT OF THE CONTRACT THE BIDDER PROMPTLY ALLEGED THAT IT INTENDED TO BID ?0162 EACH FOR THE ITEMS INSTEAD OF ?162. THE REQUEST FOR RELIEF WAS SUPPORTED BY COPIES OF CERTAIN PAPERS WHICH SUBSTANTIATE THE FACT THAT THE ERROR WAS MADE AS ALLEGED. THE SELLING AGENCY, IN REVIEWING THE MATTER, POINTED OUT THAT THE INTENDED UNIT PRICE CORRESPONDS TO THE EXTENDED TOTALS SHOWN ON THE SUBMITTED BID FORM. IN VIEW THEREOF, AND HAVING REGARD FOR THE SUBSTANTIAL DIFFERENCE BETWEEN THE QUOTED UNIT PRICE AND THE KNOWN MARKET VALUE OF THE ARTICLES, IT WAS CONCLUDED BY THE ADMINISTRATIVE OFFICE THAT FAILURE TO DETECT THE ERRORS WAS AN OVERSIGHT ON THE PART OF THE GOVERNMENT REPRESENTATIVES.

THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE MISTAKE ON BOTH ITEMS WAS MADE, AS ALLEGED AND,IN THAT SITUATION, VERIFICATION OF THE BID SHOULD HAVE BEEN REQUESTED BEFORE ACCEPTANCE. ACCORDINGLY, CANCELLATION OF THE CONTRACT IS AUTHORIZED, AS RECOMMENDED BY THE CONTRACTING OFFICER.