B-150545, JAN. 10, 1963

B-150545: Jan 10, 1963

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WAS OPENED ON NOVEMBER 13. ITEM NO. 47 OF THE INVITATION WAS DESCRIBED AS FOLLOWS: CHART "47. DRILL HEADS ARE MULTIPLE SPINDLE. 721.64 9 EACH" A SEPARATE FORM WHICH BIDDERS WERE TO USE IN MAKING THEIR BIDS PROVIDED COLUMNS FOR UNIT PRICES AND TOTAL PRICES BID FOR EACH ITEM. IT IS REPORTED THAT ON NOVEMBER 19. THE SALES CONTRACTING OFFICER REPORTS THAT HE NOTED EVERITE'S BID WAS EXCESSIVE WHEN COMPARED TO THE OTHER BIDS ON ITEM NO. 47 (THE NEXT HIGHEST OF WHICH WAS ONLY $35 PER UNIT). ITS PRICES WERE ALL PLACED IN THE UNIT COLUMN WITH NO EXTENSIONS MADE IN THE TOTAL COLUMN FOR ANY ITEM. THIS TOTAL IS CORRECT ONLY IF THE PRICES BID ARE CONSIDERED AS TOTALS FOR EACH ITEM RATHER THAN UNIT PRICES.

B-150545, JAN. 10, 1963

TO DIRECTOR, DEFENSE SUPPLY AGENCY:

THIS REFERS TO A LETTER OF DECEMBER 28, 1962, WITH ENCLOSURES, FROM YOUR ASSISTANT COUNSEL, R.F.S. HOMANN (REFERENCE DSAH-G), RELATIVE TO A REQUEST FROM EVERITE MACHINE PRODUCTS COMPANY, FOR RESCISSION OF CONTRACT NO. DSA- 11-S-849, BECAUSE OF AN ERROR IN BID.

SALES INVITATION NO. 11-S-63-36, COVERING MACHINE TOOLS AND SHOPEQUIPMENT, WAS OPENED ON NOVEMBER 13, 1962. ITEM NO. 47 OF THE INVITATION WAS DESCRIBED AS FOLLOWS:

CHART

"47. DRILL HEADS AND GRINDER

VARIOUS MANUFACTURER-S, UNITED STATES DRILL HEAD COMPANY,

KELLER TOOL COMPANY, ZAGER TOOL COMPANY. DRILL HEADS

ARE MULTIPLE SPINDLE, SPECIAL PURPOSE. DRILL HEAD, 2

SPINDLE. 4 EACH

DRILL HEAD, 3 SPINDLE. 1 EACH

DRILL HEAD, 4 SPINDLE. 2 EACH

DRILL HEAD, 8 SPINDLE. 1 EACH

DRILL HEAD, 9 SPINDLE. 1 EACH

NOT PACKED FOR SHIPMENT. EST.CU.FT. 10. EST.GR.WT. 300 LBS.

COND: USED, GOOD EST. TOTAL ACQUISITION: $4,721.64

9 EACH"

A SEPARATE FORM WHICH BIDDERS WERE TO USE IN MAKING THEIR BIDS PROVIDED COLUMNS FOR UNIT PRICES AND TOTAL PRICES BID FOR EACH ITEM.

THE ABSTRACT LISTS THE FOLLOWING BIDS AS RECEIVED ON ITEM NO. 47.

CHART

NAME OF BIDDER AMOUNT BID PER EACH

COES KNIFE CO., WORCESTER, MASS. $75.00 LOT

MILLER INDUSTRIES, JACKSON, MICH. 16.667

FRANKLIN FIBRE LIMITED, NEW YORK, N.Y. 35.00

GENERAL MACH. AND EQUIP., HARRISBURG, PA. 11.00

MILLCRAFT PRODUCTS, WASHINGTON, PA. 8.00

EVERITE MACHINE PRODUCTS CO., PHILA., PA. 125.00

ADELPHIA, PHILA., PA. 25.00 EXTENDED

BOWEN-MCLAUGHLIN, YORK, PA. 268.00 LOT

J.M. LOEFFLER, PENNDEL, PA. 10.00

ON NOVEMBER 16, 1962, EVERITE MACHINE RECEIVED AWARD ON ITEM NO. 47 AT A TOTAL PRICE OF $1,125 (9 UNITS AT $125.00 EACH). IT IS REPORTED THAT ON NOVEMBER 19, 1962, MR. MILTON STERN, THE PRESIDENT OF EVERITE MACHINE, TELEPHONED THE SALES OFFICE. HE STATED THAT AFTER EXAMINING THE AWARD, HE DISCOVERED THAT IN SUBMITTING A BID ON ITEM NO. 47, THE FIRM HAD ERRONEOUSLY RECORDED A PRICE OF $125 IN THE UNIT COLUMN IN LIEU OF THE TOTAL PRICE COLUMN AS INTENDED. BY LETTER DATED NOVEMBER 20, 1962, THE BIDDER CONFIRMED THE MISTAKE, AND IT REQUESTED THAT ITS BID BE WITHDRAWN.

THE SALES CONTRACTING OFFICER REPORTS THAT HE NOTED EVERITE'S BID WAS EXCESSIVE WHEN COMPARED TO THE OTHER BIDS ON ITEM NO. 47 (THE NEXT HIGHEST OF WHICH WAS ONLY $35 PER UNIT), BUT BECAUSE OF THE TYPE OF MATERIAL AND THE NATURE OF THE BIDDER'S BUSINESS HE DID NOT VERIFY THE BID.

EVERITE BID ON ELEVEN ITEMS OF WHICH FOUR CONSISTED OF MORE THAN ONE UNIT. ITS PRICES WERE ALL PLACED IN THE UNIT COLUMN WITH NO EXTENSIONS MADE IN THE TOTAL COLUMN FOR ANY ITEM. ALSO, ON THE FACE OF ITS BID EVERITE SHOWED THE TOTAL OF ITS BID ON ALL ELEVEN ITEMS AS $13,979.50. THIS TOTAL IS CORRECT ONLY IF THE PRICES BID ARE CONSIDERED AS TOTALS FOR EACH ITEM RATHER THAN UNIT PRICES. THE RECOMMENDATION OF THE CONTRACTING OFFICER, WITH WHICH MR. HOMANN CONCURS, IS THAT EVERITE BE ALLOWED TO WITHDRAWN ITS BID.

IN THE CIRCUMSTANCES WE AGREE THAT THERE WAS SUFFICIENT EVIDENCE OF ERROR IN EVERITE'S BID TO HAVE CALLED FOR VERIFICATION. THE AWARD MAY THEREFORE BE RESCINDED AND THE BIDDER'S DEPOSIT REFUNDED.