B-151388, JUL. 10, 1963

B-151388, JUL. 10, 1963

TO THE SECRETARY OF AGRICULTURE:

REFERENCE IS MADE TO LETTER OF APRIL 24, 1963, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY, DEPARTMENTAL ADMINISTRATION, REQUESTING A DECISION WHETHER AN AWARD MADE TO PARADISE AIRLINES FOR ITEM 28 UNDER SALES INVITATION NO. R5-63-64, ISSUED BY THE U.S. FOREST SERVICE, SAN FRANCISCO, CALIFORNIA, MAY BE RESCINDED.

THE INVITATION, AS AMENDED BY ADDENDUM NO. 1, DATED JANUARY 11, 1963 (WHICH SUBSTITUTED A NEW ,BID SCHEDULE" FOR THAT CONTAINED IN THE ORIGINAL INVITATION), SOLICITED BIDS, TO BE OPENED FEBRUARY 18, 1963, SUBJECT TO THE GENERAL SALE TERMS AND CONDITIONS (STANDARD FORM 114C, MARCH 1960 EDITION), AND THE "SPECIAL CONDITIONS APPLICABLE TO THIS BID INVITATION," WHICH WERE MADE A PART THEREOF, FOR ANY OR ALL OF THE ITEMS OR LOTS OF GOVERNMENT-OWNED PERSONAL PROPERTY LISTED THEREIN. THE PROPERTY, WHICH CONSISTED OF USED AIRCRAFT, AIRCRAFT COMPONENTS (INCLUDING ENGINES) AND OTHER EQUIPMENT LOCATED AT THE OAKLAND INTERNATIONAL AIRPORT, OAKLAND, CALIFORNIA, WAS LISTED IN THE ORIGINAL INVITATION AS 12 ITEMS, BUT IN THE REVISED SCHEDULE AS 32.

EACH OF ITEMS 10 THROUGH 25 WAS A PRATT AND WHITNEY ENGINE, DESCRIBED BY SERIAL NUMBER, AND SPACE WAS PROVIDED ON THE BID FORM OPPOSITE EACH ITEM FOR THE INSERTION OF A PRICE THEREON. IN ORDER TO FACILITATE A RECITAL OF THE FACTS IN THE INSTANT CASE, THAT PART OF THE BID FORM WHICH SETS FORTH ITEMS 25 (THE DESCRIPTION OF WHICH WAS IDENTICAL WITH THE OTHER ITEMS IN THE 10 THROUGH 25 GROUP IN RESPECT TO THE MANNER IN WHICH BID PRICES WERE TO BE SHOWN) THROUGH 28 IS QUOTED:

TABLE

QUANTITY UNIT AMOUNT "25. ENGINE, AIRCRAFT, R1830-92, PRATT AND

WHITNEY, SERIAL NO. 133309 1 EACH $----

26. TRUCK, FIRE, CHEVROLET 1940 NO. FS311

FMT-25 1 EACH $-----

27. TRUCK, GMC, 2 1/2 TON, SERIAL NO. 169437 1 EACH $----

28. PLATFORM, ENGINE SERVICING, KNOCKED DOWN

IN CRATES, RXE 1730-703-3415-5100,

NO. 313 2 FOR THE LOT $--- "

BIDDERS WERE ADVISED IN THE INVITATION THAT A BID DEPOSIT FOR 25 PERCENT OF THE TOTAL AMOUNT BID WAS REQUIRED TO BE SUBMITTED.

UNDER DATE OF FEBRUARY 15, 1963, PARADISE AIRLINES SUBMITTED A BID SHOWING A PRICE OF $300 FOR A LARGE GROUP OF ARTICLES ENUMERATED UNDER ITEM NO. 4, THE BID PRICE FOR WHICH WAS STATED IN THE BID FORM AS "FOR THE LOT $----- "; A PRICE OF $5,000 FOR A LARGE GROUP OF ARTICLES ENUMERATED UNDER ITEM NO. 5, WHICH WAS SIMILARLY STATED; PRICES OF $150 FOR EACH OF ITEMS 16 AND 19; PRICES OF $200 AND $300 FOR ITEMS 21 AND 25, RESPECTIVELY; A PRICE OF $1,500 IN THE SPACE PROVIDED AFTER THE WORDS "FOR THE LOT" FOLLOWING ITEM 28, SUPRA; AND A PRICE OF $10 FOR ITEM NO. 31, WHICH CONSISTED OF A COFFEE URN. THE BID INDICATES THAT A CERTIFIED CHECK IN THE AMOUNT OF $1,702.50 WAS SUBMITTED THEREWITH AS THE REQUIRED DEPOSIT. THE OTHER BIDS RECEIVED FOR ITEM 28 WERE IN THE AMOUNTS OF $150, $26, $25.01 AND $10.

THE INFORMATION ON THE "SALE OF GOVERNMENT PROPERTY BID AND AWARD" FORM (STANDARD FORM 114A, MARCH 1960) EVIDENCING THE INSTANT TRANSACTION INDICATES THAT AWARD WAS MADE TO PARADISE AIRLINES FOR ITEMS 28 AND 31 ON FEBRUARY 20, 1963. HOWEVER, IN ITS LETTER OF MARCH 1, 1963, TO THE CONTRACTING OFFICER, ALLEGING A MISTAKE IN ITS BID, PARADISE REFERS TO "RECEIVING YOUR LETTER DATED FEBRUARY 26, 1963," ADVISING IT OF THE AWARD. IN THIS LETTER, AS CLARIFIED BY ITS LETTER OF MARCH 7, 1963, PARADISE STATES, IN SUBSTANCE, THAT IT DID NOT INTEND TO BID ON ITEM 28 AS A SEPARATE ITEM, BUT ONLY INSOFAR AS IT COMPRISED ONE OF THE ITEMS OF EQUIPMENT CONTAINED IN THE GROUP OF ITEMS 10 THROUGH 28, WHICH IT THOUGHT WAS BEING OFFERED FOR SALE ON A FOR-THE-LOT, WAS WELL AS AN INDIVIDUAL- ITEM, BASIS; THUS, THE STATED INTENTION WAS TO SUBMIT THE SEPARATE BIDS INDICATED WITH RESPECT TO ITEMS 16, 19, 21 AND 25, AND TO SUBMIT, AS AN ALTERNATE, A BID OF $1,500 FOR ALL OF THE ITEMS 10 THROUGH 28.

THE ERROR OCCURRED, ACCORDING TO PARADISE, IN TRANSFERRING ITS BID PRICES FROM THE ORIGINAL BID SCHEDULE TO THE BID SCHEDULE SENT OUT WITH ADDENDUM NO. 1. THE ARTICLES ENUMERATED UNDER ITEMS NOS. 1 THROUGH 5 OF THE NEW BID SCHEDULE WERE IDENTICAL WITH THOSE SHOWN ON THE ORIGINAL SCHEDULE IN THE CASE OF THOSE ITEM NUMBERS, AND IN BOTH INSTANCES BIDS WERE REQUIRED TO BE SUBMITTED FOR THE GROUP OF ARTICLES ENUMERATED UNDER A PARTICULAR ITEM FOR A FOR-THE-LOT BASIS. THE 16 PRATT AND WHITNEY ENGINES LISTED AS ITEMS 10 THROUGH 25 IN THE NEW BID SCHEDULE HAD BEEN LISTED AS ITEMS 7 AND 8 ON THE ORIGINAL BID SCHEDULE, FOUR OF THE ENGINES BEING LISTED UNDER ITEM 7 AND THE REMAINDER THEREOF, INCLUDING THE ENGINES SHOWN AS ITEMS 16, 19, 21 AND 25 ON THE NEW SCHEDULE, BEING LISTED UNDER ITEM 8. THE ENGINES GROUPED UNDER EACH OF THESE ITEMS WERE OFFERED ON A FOR-THE-LOT BASIS, AND PARADISE THOUGHT THAT ITEMS 10 THROUGH 28 ON THE NEW SCHEDULE WERE ALSO OFFERED ON A FOR-THE-LOT, AS WELL AS AN INDIVIDUAL, BASIS. THAT PARADISE INTENDED THE $1,500 INSERTED OPPOSITE ITEM 28 AS A GROUP BID AND AS AN ALTERNATE BID TO THE INDIVIDUAL BIDS SUBMITTED FOR ITEMS 16, 19, 21 AND 25 SEEMS EVIDENT FROM THE FACT THAT THE AMOUNT SUBMITTED AS A BID DEPOSIT EQUALS EXACTLY ONE FOURTH OF THE SUM OF THE BID FIGURES $300, $5,000, $1,500 AND $10, BUT WOULD BE SUBSTANTIALLY DEFICIENT IF THE PRICES BID ON INDIVIDUAL ITEMS 16, 19, 21 AND 25 WERE ADDED.

THE INORDINATE DISPARITY BETWEEN PARADISE'S BID AND THE OTHER BIDS RECEIVED FOR ITEM 28, TOGETHER WITH THE FACT THAT THE BID PRICE OF $1,500 FOR THE ITEM REPORTEDLY WAS CLEARLY OUT OF LINE WITH THE REASONABLE VALUE OF THE ENGINE SERVICING PLATFORM INVOLVED, WAS SUFFICIENT TO PLACE THE CONTRACTING OFFICER ON NOTICE AS TO THE PROBABILITY OF ERROR. IN VIEW THEREOF, THE AWARD OF ITEM 28 TO PARADISE AIRLINES SHOULD BE DISREGARDED, AS ADMINISTRATIVELY RECOMMENDED, AND THE PORTION OF THE BID DEPOSIT APPLICABLE TO THAT ITEM SHOULD BE RETURNED. SEE C. N. MONROE MANUFACTURING COMPANY V. UNITED STATES (U.S. DIST.CT. E.D. MICH., S.D., 1956), 143 F.SUPP. 449, 451.

THE FILE TRANSMITTED WITH THE ADMINISTRATIVE ASSISTANT SECRETARY'S LETTER IS RETURNED HEREWITH, AS REQUESTED.