B-151485, JUL. 9, 1963

B-151485: Jul 9, 1963

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TO NATIONAL AERONAUTICS AND SPACE ADMINISTRATION: REFERENCE IS MADE TO LETTER DATED MAY 7. C-1655 WAS ISSUED FEBRUARY 7. AWARD WAS MADE TO COOK ELECTRIC COMPANY AS LOW BIDDER IN THE AMOUNT OF $7. FOUR ADDITIONAL BIDS WERE RECEIVED IN THE AMOUNTS OF $8. CLAIM IS MADE FOR $4. THE CONTRACTOR ADMITS THAT THE ERROR WAS DUE TO CARELESSNESS. THE CONTRACTING OFFICER MUST HAVE HAD KNOWLEDGE OF THE ERROR PRIOR TO MAKING THE AWARD. HE HAD NO ACTUAL NOTICE OF THE EXISTENCE OF ERROR AND FROM THAT FACTS AS REPORTED NEITHER THE DIFFERENCE IN PRICES NOR ANYTHING ELSE ABOUT THE BID WAS SUCH AS TO GIVE CONSTRUCTIVE NOTICE OF SAME. SINCE THE MISTAKE WAS NOT MUTUAL AND THE GOVERNMENT WAS NOT IN ANY WAY RESPONSIBLE FOR SAME.

B-151485, JUL. 9, 1963

TO NATIONAL AERONAUTICS AND SPACE ADMINISTRATION:

REFERENCE IS MADE TO LETTER DATED MAY 7, 1963, FROM THE DIRECTOR, OFFICE OF PROCUREMENT, REQUESTING A DECISION AS TO WHETHER ANY ADDITIONAL AMOUNT MAY BE PAID COOK ELECTRIC COMPANY, NUCLEDYNE DIVISION, UNDER CONTRACT NO. NAS3-1481, BECAUSE OF AN ALLEGED MISTAKE IN BID.

INVITATION FOR BIDS NO. C-1655 WAS ISSUED FEBRUARY 7, 1961, CALLING FOR BIDS TO BE OPENED FEBRUARY 21, 1961, FOR FURNISHING SERVICES AND MATERIALS TO FABRICATE, MACHINE, ASSEMBLE AND TEST NINE (9) 5-CHANNEL STRAIN GAGE BALANCE EC SPAN PANELS AS PER NASA DRAWINGS AND SPECIFICATIONS AND ATTACHED "SPECIFICATIONS FOR ELECTRONIC CONTRACT WORK.' ON FEBRUARY 24, 1961, AWARD WAS MADE TO COOK ELECTRIC COMPANY AS LOW BIDDER IN THE AMOUNT OF $7,284.18. FOUR ADDITIONAL BIDS WERE RECEIVED IN THE AMOUNTS OF $8,955, $9,612, $9,765 AND $9,900.

BY LETTER DATED APRIL 11, 1961, THE CONTRACTOR ALLEGED THAT AN ERROR HAD BEEN MADE IN FAILING TO INCLUDE THE COST OF CERTAIN COMPONENTS. THE LETTER STATES THAT THE COMPANY'S ESTIMATOR ONLY INCLUDED THE COST OF NINE DECKASTATS, INSTEAD OF THE CORRECT TOTAL OF 45 (5 PER PANEL). CLAIM IS MADE FOR $4,348.84, REPRESENTING $4,141.75 AS THE ADDITIONAL COST OF THE DECKASTATS AND 5 PERCENT GENERAL AND ADMINISTRATIVE EXPENSE IN THE AMOUNT OF $207.09. THE CONTRACTOR ADMITS THAT THE ERROR WAS DUE TO CARELESSNESS, BUT SUGGESTS IN EXTENUATION THAT ITS ESTIMATOR HAD ONLY A FEW DAYS TO PREPARE THE BID AND THAT A PREVIOUS INVITATION FOR A QUANTITY OF THE SAME ITEM INCLUDED DECKASTATS AS GOVERNMENT FURNISHED EQUIPMENT.

IN ORDER TO JUSTIFY RELIEF, THE CONTRACTING OFFICER MUST HAVE HAD KNOWLEDGE OF THE ERROR PRIOR TO MAKING THE AWARD. HE HAD NO ACTUAL NOTICE OF THE EXISTENCE OF ERROR AND FROM THAT FACTS AS REPORTED NEITHER THE DIFFERENCE IN PRICES NOR ANYTHING ELSE ABOUT THE BID WAS SUCH AS TO GIVE CONSTRUCTIVE NOTICE OF SAME. FURTHERMORE, THE CONTRACTING OFFICER HAS STATED THAT HE DID NOT SUSPECT THAT AN ERROR HAD BEEN MADE.

SINCE THE MISTAKE WAS NOT MUTUAL AND THE GOVERNMENT WAS NOT IN ANY WAY RESPONSIBLE FOR SAME, NO AMOUNT MAY BE PAID IN ADDITION TO THE CONTRACT PRICE.