B-149724, SEP. 4, 1962

B-149724: Sep 4, 1962

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DEFENSE SUPPLY AGENCY: REFERENCE IS MADE TO YOUR ASSISTANT COUNSEL'S LETTER OF AUGUST 15. BLUFF CITY AUTO PARTS WAS ADVISED THAT IT HAD BEEN AWARDED THE ENTIRE QUANTITY OF 1. IT IS REPORTED THAT UPON RECEIPT OF THE NOTICE OF AWARD. THE OWNER OF BLUFF CITY AUTO PARTS TELEPHONED ALLEGING THAT HIS BID ON ITEM 5 WAS $3.33 EACH AND NOT $7.90 EACH AS SHOWN ON THE NOTICE OF AWARD AND THAT THE AMOUNT OF $7.90 SHOWN ON HIS BID WAS INTENDED TO BE APPLICABLE TO ITEM 6 WHICH CONSISTS OF 9 AIR COMPRESSORS. THE RECORD SHOWS THAT BIDDERS WERE PERMITTED UNDER ITEM 5 TO SUBMIT A BID ON THE ENTIRE QUANTITY OF 1. THE BLUFF CITY AUTO PARTS ENTERED A BID OF $3.33 EACH OPPOSITE THE SPACE PROVIDED FOR A BID ON THE ENTIRE QUANTITY AND IN THE SPACE IMMEDIATELY BELOW A PRICE OF $7.90 WAS ENTERED.

B-149724, SEP. 4, 1962

TO THE DIRECTOR, DEFENSE SUPPLY AGENCY:

REFERENCE IS MADE TO YOUR ASSISTANT COUNSEL'S LETTER OF AUGUST 15, 1962, FILE REFERENCE DSAH-G, REQUESTING A DECISION AS TO WHETHER THE RELIEF SOUGHT BY BLUFF CITY AUTO PARTS UNDER SALES CONTRACT NO. N67004 7598 MAY BE GRANTED.

THE DEFENSE SURPLUS SALES OFFICE, MARINE CORPS SUPPLY CENTER, ALBANY, GEORGIA, BY INVITATION NO. B-82-62-N67004 REQUESTED BIDS FOR THE PURCHASE FROM THE GOVERNMENT OF MISCELLANEOUS SURPLUS EQUIPMENT. IN RESPONSE BLUFF CITY AUTO PARTS SUBMITTED A BID AS FOLLOWS:

CHART

"ITEM ARTICLES FOR SALE QUANTITY UNIT OF PRICE BID TOTAL PRICE BID

NO. (NO. OF MEASURE PER UNIT ---------------

UNITS) DOLLARS CENTS

1. PIPE 283 EACH

2 GAGE 410 EACH .03

3 GENERATOR 21 EACH 12.60

4 SHAFT ASSEMBLY 26 EACH 9.60

5 REPAIR KIT 1,274 EACH 3.33

BIDS SHALL BE MADE EACH 7.90

FOR A MINIMUM OF 200

OF THE REPAIR KITS EACH

LISTED ABOVE, AND ONE

MULTIPLE OF 74. EACH

6 AIR COMPRESSOR 9 EACH"

BY NOTICE OF AWARD DATED JUNE 20, 1962, BLUFF CITY AUTO PARTS WAS ADVISED THAT IT HAD BEEN AWARDED THE ENTIRE QUANTITY OF 1,274 DIFFERENTIAL REPAIR KITS COVERED BY ITEM 5 AT A UNIT PRICE OF $7.90.

IT IS REPORTED THAT UPON RECEIPT OF THE NOTICE OF AWARD, THE OWNER OF BLUFF CITY AUTO PARTS TELEPHONED ALLEGING THAT HIS BID ON ITEM 5 WAS $3.33 EACH AND NOT $7.90 EACH AS SHOWN ON THE NOTICE OF AWARD AND THAT THE AMOUNT OF $7.90 SHOWN ON HIS BID WAS INTENDED TO BE APPLICABLE TO ITEM 6 WHICH CONSISTS OF 9 AIR COMPRESSORS.

BY CONFIRMING LETTER DATED JUNE 22, 1962, THE COMPANY SUBMITTED ITS WORKSHEET WHICH APPEARS TO BE A COPY OF THE DESCRIPTION SHEET COVERING ITEM 5 AND CERTAIN OTHER ITEMS. THE WORKSHEET INDICATES A BID OF $3.33 FOR ITEM 5 AND A BID OF $7.90 EACH FOR ITEM 6, COVERING 9 AIR COMPRESSORS.

THE RECORD SHOWS THAT BIDDERS WERE PERMITTED UNDER ITEM 5 TO SUBMIT A BID ON THE ENTIRE QUANTITY OF 1,274 OR IN MULTIPLES OF 200 AND ONE MULTIPLE OF 74. THE BLUFF CITY AUTO PARTS ENTERED A BID OF $3.33 EACH OPPOSITE THE SPACE PROVIDED FOR A BID ON THE ENTIRE QUANTITY AND IN THE SPACE IMMEDIATELY BELOW A PRICE OF $7.90 WAS ENTERED, WITH NO INDICATION OF THE QUANTITY AS TO WHICH THIS PRICE WAS TO APPLY. SINCE THE COMPANY HAD INDICATED IN ITS BID THAT THE PRICE OF $3.33 EACH WAS ON THE ENTIRE QUANTITY SPECIFIED UNDER ITEM 5, THERE WAS NO PROPER BASIS FOR THE CONTRACTING OFFICER TO ASSUME THAT THE PRICE OF $7.90 WAS ALSO A BID ON THE ENTIRE QUANTITY COVERED BY THAT ITEM. IT IS OBVIOUS THAT A BIDDER WOULD NOT QUOTE TWO DIFFERENT PRICES FOR THE SAME QUANTITY. WE BELIEVE THAT, IN THE CIRCUMSTANCES, THE CONTRACTING OFFICER SHOULD HAVE REQUESTED THE COMPANY TO CLARIFY ITS BID ON ITEM 5 PRIOR TO ITS ACCEPTANCE THEREOF.

ACCORDINGLY, CONTRACT NO. N67004-7598 MAY BE CANCELED WITHOUT LIABILITY TO BLUFF CITY AUTO PARTS.