B-149117, JUN. 27, 1962

B-149117: Jun 27, 1962

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THE INVITATION WAS ISSUED ON DECEMBER 29. A BID DEPOSIT OF 20 PERCENT OF THE TOTAL AMOUNT BID WAS REQUIRED AND THE TERMS AND CONDITIONS OF THE SALE PROVIDED THAT IN THE EVENT OF A DEFAULT BY A PURCHASER. THE BIDS WERE OPENED ON JANUARY 23. ITEM NO. 9 OF THE INVITATION IS DESCRIBED AS OLLOWS: "GENERATOR ASSEMBLY. THE BID ABSTRACT REVEALS THAT AWARDS WERE MADE TO BIDDERS AS FOLLOWS: CHART ITEM NO. 9 BIDDER QUANTITY AWARDED UNIT PRICE 49 50 $4.11 62 2 3.33 63 50 3.16 68 (MARINE POWER) 400 3.11 70 10 2.58 63 54 2.57 82 100 2.26 76 1. 445 UNITS IT IS REPORTED THAT ON FEBRUARY 1. WE SEE NOTHING ON THE FACE OF THE MARINE POWER BID TO INDICATE THAT AN ERROR IN BID MAY HAVE OCCURRED. THE BID PRICE OF $3.11 PER UNIT WAS NOT THE HIGHEST PRICE RECEIVED ON ITEM NO. 9.

B-149117, JUN. 27, 1962

TO LIEUTENANT GENERAL ANDREW T. MCNAMARA:

THIS REFERS TO A LETTER OF JUNE 5, 1962, WITH ENCLOSURES, FROM YOUR ASSISTANT COUNSEL, FORWARDING FOR DECISION A REQUEST FROM MARINE POWER AND EQUIPMENT COMPANY FOR RELIEF UNDER A CONTRACT RESULTING FROM SALES INVITATION NO. 04-513-S-62-50, ON THE BASIS OF AN ERROR IN BID ALLEGED AFTER THE AWARD.

THE INVITATION WAS ISSUED ON DECEMBER 29, 1961, BY THE SHARPE CONSOLIDATED SURPLUS SALES OFFICE, LATHROP, CALIFORNIA, ANNOUNCING THE SALE OF VARIOUS ITEMS OF AUTOMOTIVE PARTS AND WING TANKS. A BID DEPOSIT OF 20 PERCENT OF THE TOTAL AMOUNT BID WAS REQUIRED AND THE TERMS AND CONDITIONS OF THE SALE PROVIDED THAT IN THE EVENT OF A DEFAULT BY A PURCHASER, THE GOVERNMENT MIGHT RETAIN AS LIQUIDATED DAMAGES 20 PERCENT OF THE PURCHASE PRICE OF THE ITEM/S) AS TO WHICH THE DEFAULT HAD OCCURRED.

THE BIDS WERE OPENED ON JANUARY 23, 1962. ITEM NO. 9 OF THE INVITATION IS DESCRIBED AS OLLOWS:

"GENERATOR ASSEMBLY, 12V, DELCO REMY MDL 1106461, PACKED G214-73 47271, 2920-734-7271, UNUSED, 1 AND 2 GOOD, APPROX OR WT: 66 AND 108 POUNDS, EACH TO BOX. TC $123,717.00BIDS ACCEPTED ON MULTIPLES OF 2 EACH.

QUANTITY - 2,445 EACH" OF THE 2,445 UNITS COMPRISING ITEM NO. 9, THE BID ABSTRACT REVEALS THAT AWARDS WERE MADE TO BIDDERS AS FOLLOWS:

CHART

ITEM NO. 9 BIDDER QUANTITY AWARDED

UNIT PRICE

49 50 $4.11

62 2 3.33

63 50 3.16

68 (MARINE POWER) 400 3.11

70 10 2.58

63 54 2.57

82 100 2.26

76 1,000 2.02

76 445 1.62

24 100 1.58

76 234 (BID QUOTED ON 1.52

UP TO 1,000 UNITS)

2,445 UNITS

IT IS REPORTED THAT ON FEBRUARY 1, 1962, THE CONTRACTING OFFICER RECEIVED A TELEPHONE CALL FROM MR. PETER WOECK OF THE MARINE POWER AND EQUIPMENT COMPANY, WHO STATED THAT WHILE MARINE POWER HAD RECEIVED AWARD ON 400 UNITS COMPRISING ITEM NO. 9, AT $3.11 PER UNIT (BIDDER NO. 68), THE COMPANY HAD ONLY INTENDED TO BID ON 40 UNITS AT $3.11 EACH, AND 100 UNITS OF THE SAME ITEM AT $1.11 EACH. THE BID SHOWS, HOWEVER, A TYPEWRITTEN QUOTATION OF "UP TO 400" UNITS AT $3.11 PER UNIT, AND "UP TO 100" UNITS AT $1.11 PER UNIT. EVIDENCE HAS BEEN SUBMITTED BY THE BIDDER INDICATING THAT A TYPOGRAPHICAL ERROR HAD OCCURRED IN TRANSPOSING WRITTEN FIGURES FROM A WORKSHEET TO THE BID, CHANGING "40 UNITS" TO "400 UNITS.'

THE CONTRACTOR HAS SUBMITTED PAYMENT IN THE AMOUNT OF $248.80, WHICH REPRESENTS 20 PERCENT OF THE TOTAL AMOUNT OF THE AWARD MADE TO IT. THE AMOUNT HAS BEEN WITHHELD FROM THE CONTRACTOR AS LIQUIDATED DAMAGES FOR NONPERFORMANCE OF THE CONTRACT.

WE SEE NOTHING ON THE FACE OF THE MARINE POWER BID TO INDICATE THAT AN ERROR IN BID MAY HAVE OCCURRED. THE BID PRICE OF $3.11 PER UNIT WAS NOT THE HIGHEST PRICE RECEIVED ON ITEM NO. 9, AND IT IS NOTED FROM THE BID ABSTRACT THAT BIDDER NO. 76 ALSO SUBMITTED A BID WHEREIN A HIGHER PRICE WAS OFFERED ON A GREATER QUANTITY (1,000 UNITS AT $2.02, AND 445 UNITS AT $1.62).

ON THE BASIS OF THE RECORD WE MUST CONCLUDE THAT THE BIDDER IS NOT ENTITLED TO RELIEF FROM THE TERMS AND CONDITIONS OF THE CONTRACT.