B-149918, SEP. 28, 1962

B-149918, SEP. 28, 1962

TO DIRECTOR, DEFENSE SUPPLY AGENCY:

REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 12, 1962, WITH ENCLOSURES, DSAH-G, FROM THE ASSISTANT COUNSEL, HEADQUARTERS, DEFENSE SUPPLY AGENCY, CAMERON STATION, REQUESTING OUR DECISION AS TO WHETHER THERE MAY BE GRANTED THE RELIEF SOUGHT BY THE MUTUAL TRUCK PARTS COMPANY, INC., CHICAGO, ILLINOIS, UNDER CONTRACT NO. DSA-36-S-210, DATED AUGUST 17, 1962.

IN RESPONSE TO SALE INVITATION NO. 36-S-63-6, ISSUED ON JULY 18, 1962, BY THE DEFENSE SURPLUS SALES OFFICE, KELLY AIR FORCE BASE, TEXAS, THE MUTUAL TRUCK PARTS COMPANY, INC., SUBMITTED A BID DATED AUGUST 11, 1962, OFFERING TO PURCHASE ITEM NO. 44, COVERING 123 CARBURETOR ASSEMBLIES AT $12.89 EACH AND SHOWING AN EXTENDED TOTAL PRICE OF $850.74. FIVE OTHER BIDS WERE RECEIVED FOR ITEM NO. 44 RANGING FROM $2.67 TO $0.533 EACH. APPLYING THAT PART OF PARAGRAPH 3 OF THE GENERAL SALE TERMS AND CONDITIONS OF THE INVITATION WHICH PROVIDES THAT IN CASE OF ERROR IN THE EXTENSION OF PRICES THE UNIT PRICES WILL GOVERN, THE CONTRACTING OFFICER EXTENDED THE TOTAL PRICE OF THE BID TO $1,585.47, AND ON AUGUST 17, 1962, MADE AN AWARD OF CONTRACT IN THAT AMOUNT TO THE CORPORATION FOR ITEM NO. 44. UPON RECEIPT OF THE AWARD THE MUTUAL TRUCK PARTS COMPANY, INC., ALLEGED THAN AN ERROR HAD BEEN MADE IN ITS BID IN THAT THE PRICE QUOTED FOR ITEM NO. 44 WAS INTENDED FOR ITEM NO. 46 COVERING 66 PLATE ASSEMBLIES ON WHICH A HIGH BID OF $12.61 EACH HAD BEEN RECEIVED. IN VIEW OF THE ERROR THE CORPORATION SEEKS CANCELLATION OF THE AWARD OR IN THE ALTERNATIVE TO BE DECLARED IN DEFAULT UNDER PARAGRAPH 7 OF THE GENERAL SALE TERMS AND CONDITIONS OF THE INVITATION.

THERE CAN BE NO DOUBT THAT AN ERROR IN THE BID OF THE MUTUAL TRUCK PARTS COMPANY, INC., OCCURRED AS ALLEGED BY THE CORPORATION SINCE BASED ON THE 123 CARBURETOR ASSEMBLIES COVERED BY ITEM NO. 44 A DISCREPANCY EXISTS BETWEEN THE UNIT PRICE OF $12.89 AND THE EXTENDED TOTAL AMOUNT OF $850.74 FOR THAT ITEM, WHEREAS THE UNIT PRICE OF $12.89 FOR THE 66 PLATE ASSEMBLIES COVERED BY ITEM NO. 46 IS CONSISTENT WITH THE EXTENDED TOTAL OF $850.74 FOR THAT ITEM. THUS, WHEN THERE IS AN ERROR ON THE FACE OF THE BID ITSELF, SUCH AS HERE, IT IS OUR OPINION THAT THE TERMS OF PARAGRAPH 3 OF THE GENERAL SALE TERMS AND CONDITIONS SHOULD ONLY BE INVOKED, WITHOUT REQUESTING VERIFICATION, WHERE THE CORRECTION RESULTS IN A RELATIVELY MINOR CHANGE IN THE EXTENDED PRICE OR WHERE THE CIRCUMSTANCES INDICATE THAT THE UNIT PRICE ACTUALLY REPRESENTS THE INTENDED PRICE. WE DO NOT BELIEVE THAT ANY OF THESE CONDITIONS EXISTED IN THIS CASE. SEE 37 COMP. GEN. 829 AND THE DECISIONS CITED THEREIN.

ACCORDINGLY, CONTRACT NO. DSA-36-S-210 MAY BE CANCELED WITHOUT LIABILITY TO THE MUTUAL TRUCK PARTS COMPANY, INC. CONTRACTING OFFICER DATED AUGUST 31, 1962, AND THE REPORT DATED SEPTEMBER 11, 1962, OF THE DEFENSE LOGISTICS SERVICES CENTER, ARE RETURNED HEREWITH.