B-149660, SEP. 21, 1962

B-149660: Sep 21, 1962

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THE SUBJECT SALES INVITATION WAS ISSUED ON JUNE 5. THE WEIGHTS SHOWN REPRESENTED THE EXPECTED QUANTITIES WHICH WERE SUBJECT TO MINIMUM AND MAXIMUM SPECIFIED VARIATIONS. BID OPENING WAS HELD ON JUNE 26. WHICH WAS DESCRIBED AS STAINLESS STEEL CONTAMINATED WITH FERROUS ATTACHMENTS. THE FOLLOWING BIDS WERE RECEIVED. KLAFF AND CO. .0612 METROPOLITAN METALS .04898 PARAGON SMELTING CORP. .0912 MORRIS IRON AND STEEL .051 ABRAMS METAL CO. .0309 THE AWARD ON ITEM NO. 8 WAS MADE TO PARAGON ON JUNE 26. PARAGON NOTIFIED THE SALES OFFICE BY TELEPHONE THAT ITS BID ON ITEM NO. 8 WAS SUBMITTED IN ERROR. WHICH IS DESCRIBED AS "BRASS AND BRONZE DROSS. IT IS REPORTED THAT THE COMPANY HANDLES BRONZE. THE SALES CONTRACTING OFFICER REPORTS THAT DURING THE EVALUATION OF ITEM NO. 8 IT WAS NOTED THAT THE BID FROM PARAGON WAS EXCESSIVE WHEN COMPARED TO OTHER BIDS RECEIVED.

B-149660, SEP. 21, 1962

TO DIRECTOR, DEFENSE SUPPLY AGENCY:

THIS REFERS TO A LETTER FROM YOUR OFFICE DATED AUGUST 7, 1962, WITH ENCLOSURE, PERTAINING TO A REQUEST BY PARAGON SMELTING CORPORATION FOR RESCISSION OF THE AWARD TO IT OF ITEM NO. 8, UNDER SALES INVITATION NO. B- 110-62-63069, ISSUED BY THE DEFENSE SURPLUS SALES OFFICE, PHILADELPHIA, PENNSYLVANIA.

THE SUBJECT SALES INVITATION WAS ISSUED ON JUNE 5, 1962, COVERING VARIOUS ITEMS OF SCRAP METALS AND MATERIALS FOR THE TERM PERIOD JULY 2, 1962, TO JULY 31, 1962. THE WEIGHTS SHOWN REPRESENTED THE EXPECTED QUANTITIES WHICH WERE SUBJECT TO MINIMUM AND MAXIMUM SPECIFIED VARIATIONS.

BID OPENING WAS HELD ON JUNE 26, 1962, AND ON ITEM NO. 8, WHICH WAS DESCRIBED AS STAINLESS STEEL CONTAMINATED WITH FERROUS ATTACHMENTS, 10,000 POUNDS, THE FOLLOWING BIDS WERE RECEIVED.

AMOUNT BID

BIDDER PER POUND

H. KLAFF AND CO. .0612

METROPOLITAN METALS .04898

PARAGON SMELTING CORP. .0912

MORRIS IRON AND STEEL .051

ABRAMS METAL CO. .0309

THE AWARD ON ITEM NO. 8 WAS MADE TO PARAGON ON JUNE 26, 1962, AT ?0912 PER POUND.

ON JUNE 29, 1962, PARAGON NOTIFIED THE SALES OFFICE BY TELEPHONE THAT ITS BID ON ITEM NO. 8 WAS SUBMITTED IN ERROR. BY LETTER OF JULY 2, 1962, PARAGON STATED THAT IT INTENDED TO BID ON ITEM NO. 9 OF THE SALES INVITATION, WHICH IS DESCRIBED AS "BRASS AND BRONZE DROSS," 10,000 POUNDS. THE BIDDER ENCLOSED A WORKSHEET WHICH INDICATES ITS INTENT TO BID ?0912 PER POUND ON ITEM NO. 9. IT IS REPORTED THAT THE COMPANY HANDLES BRONZE, BRASS AND ALUMINUM ALLOYS EXCLUSIVELY.

ON ITEM NO. 9 THE BIDS RANGED IN PRICE FROM ?0803 PER POUND TO ?0896 PER POUND. THE SALES CONTRACTING OFFICER REPORTS THAT DURING THE EVALUATION OF ITEM NO. 8 IT WAS NOTED THAT THE BID FROM PARAGON WAS EXCESSIVE WHEN COMPARED TO OTHER BIDS RECEIVED. IT IS FURTHER REPORTED BY THE ADMINISTRATIVE OFFICE THAT FOR THE TYPE OF SCRAP INVOLVED HERE VARIATIONS IN BID PRICES ARE GENERALLY LESS THAN A CENTOR CENT AND A HALF PER POUND. YOUR OFFICE RECOMMENDS THAT RELIEF BE GRANTED.

UNDER THESE CIRCUMSTANCES WE BELIEVE THAT PARAGON SMELTING CORPORATION SHOULD BE RELIEVED OF ITS CONTRACT AND ITS DEPOSIT ON ITEM NO. 8 SHOULD BE REFUNDED. SEE 17 COMP. GEN. 575.