B-147699, DEC. 11, 1961

B-147699: Dec 11, 1961

Additional Materials:

Contact:

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

 

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

SHOUP: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 28. THE REQUEST FOR RELIEF WAS SUPPORTED BY COPIES OF CERTAIN PAPERS AND CORRESPONDENCE WHICH TEND TO SUBSTANTIATE THE FACT THAT THE COMPANY INTENDED A BID OF APPROXIMATELY $2. IN RESPONSE TO THE SOLICITATION 14 OTHER BIDS WERE RECEIVED ON ITEM NO. 1. 13 OTHER BIDS WERE RECEIVED ON ITEM NO. 2. THE HIGHEST OF WHICH WAS $3. IT WAS CONCLUDED THAT THE CLAIM IS SINCERE AND THEREFORE THE RELIEF REQUESTED SHOULD BE GRANTED. THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE MISTAKE WAS MADE AS ALLEGED AND THAT VERIFICATION OF THE BID SHALL HAVE BEEN REQUESTED BEFORE ACCEPTANCE.

B-147699, DEC. 11, 1961

TO GENERAL DAVID M. SHOUP:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 28, 1961, WITH ENCLOSURES, FILE REFERENCE CSX-6-ABO:ALW, REQUESTING A DECISION AS TO WHETHER THERE MAY BE GRANTED THE RELIEF REQUESTED BY GIVEN MACHINERY COMPANY IN CONNECTION WITH THE BID IT SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. B-54-62, ISSUED BY THE CONSOLIDATED SURPLUS SALES OFFICE, MARINE CORPS SUPPLY CENTER, BARSTOW, CALIFORNIA.

THE INVITATION SOUGHT OFFERS TO PURCHASE TWENTY-FIVE ITEMS OF MISCELLANEOUS MACHINERY AND EQUIPMENT IN VARYING DEGREES OF CONDITION AND REPAIR. THE GIVEN MACHINERY COMPANY QUOTED THE HIGHEST BID ON ITEMS NOS. 1, 2 AND 10, THE FIRST TWO ITEMS BEING THE SUBJECT OF THIS APPEAL. UPON A RECEIPT OF A CONTRACT THE BIDDER PROMPTLY ALLEGED THAT IT INTENDED TO BID $2,815.78 EACH FOR THE LATHES LISTED AS THE FIRST TWO ARTICLES IN THE INVITATION, INSTEAD OF THE UNIT PRICE OF $28,156.78, ENTERED ON THE BID FORM FOR BOTH ITEMS. THE REQUEST FOR RELIEF WAS SUPPORTED BY COPIES OF CERTAIN PAPERS AND CORRESPONDENCE WHICH TEND TO SUBSTANTIATE THE FACT THAT THE COMPANY INTENDED A BID OF APPROXIMATELY $2,800. IN RESPONSE TO THE SOLICITATION 14 OTHER BIDS WERE RECEIVED ON ITEM NO. 1, AND 13 OTHER BIDS WERE RECEIVED ON ITEM NO. 2, THE HIGHEST OF WHICH WAS $3,654 FOR EACH LATHE, OR $24,502.78 LESS THAN THAT OF THE COMPLAINING BIDDER. THE SELLING AGENCY, IN REVIEWING THE MATTER, POINTED OUT THAT THE AVERAGE RETURN ON THE SALE OF INDUSTRIAL MACHINERY APPROXIMATES 13 PERCENT OF THE ACQUISITION COST AS COMPARED TO 50 PERCENT INVOLVED IN THE INSTANT CASE. IN VIEW THEREOF, AND HAVING REGARD FOR THE SUBSTANTIAL DIFFERENCE BETWEEN THE QUOTED UNIT PRICE AND THE OTHER BIDS, AS WELL AS THE AVERAGE RETURN FOR LIKE ARTICLES, IT WAS CONCLUDED THAT THE CLAIM IS SINCERE AND THEREFORE THE RELIEF REQUESTED SHOULD BE GRANTED.

THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE MISTAKE WAS MADE AS ALLEGED AND THAT VERIFICATION OF THE BID SHALL HAVE BEEN REQUESTED BEFORE ACCEPTANCE. ACCORDINGLY, THE CONTRACT MAY BE AMENDED BY DELETING ITEM NO. 1 AND 2, AS ADMINISTRATIVELY RECOMMENDED, AND AWARD THEREON MAY BE MADE TO THE NEXT HIGHEST BIDDER.