B-151682, JUN. 26, 1963

B-151682: Jun 26, 1963

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DEFENSE SUPPLY AGENCY: REFERENCE IS MADE TO A LETTER DATED MAY 29. IN VIEW OF AN ERROR ALLEGED BY THE COMPANY TO HAVE BEEN MADE IN THIS ITEM UPON WHICH A PART OF THE CONTRACT WAS AWARDED. THE BARRETT-CRAVENS COMPANY ADVISED THE DEFENSE SURPLUS SALES OFFICE THAT AN ERROR HAD BEEN MADE IN THE BID IN THAT IT HAD NOT INTENDED TO BID ON ITEM NO. 47 AND THAT THE PRICES SHOWN FOR THAT ITEM WERE INTENDED FOR ITEM NO. 48. - THE ITEM FOR WHICH THE COMPANY STATES THAT ITS BID WAS INTENDED. - THERE WOULD HAVE RESULTED A TOTAL EXTENDED BID OF $12.04. WHEN THERE IS AN ERROR ON THE FACE OF THE BID ITSELF. IT IS OUR OPINION THAT THE TERMS OF PARAGRAPH 3 OF THE GENERAL SALE TERMS AND CONDITIONS OF THE INVITATION SHOULD ONLY BE APPLIED.

B-151682, JUN. 26, 1963

TO DIRECTOR, DEFENSE SUPPLY AGENCY:

REFERENCE IS MADE TO A LETTER DATED MAY 29, 1963, DSAH-G, WITH ENCLOSURE, FROM THE ASSISTANT COUNSEL, CAMERON STATION, REQUESTING OUR DECISION AS TO WHETHER, UNDER THE FACTS REPORTED, ITEM NO. 47 MAY BE CANCELED FROM CONTRACT NO. DSA-36-S-1225, ENTERED INTO BY THE DEFENSE SUPPLY AGENCY WITH THE BARRETT-CRAVENS COMPANY, NORTH BROOK, ILLINOIS, IN VIEW OF AN ERROR ALLEGED BY THE COMPANY TO HAVE BEEN MADE IN THIS ITEM UPON WHICH A PART OF THE CONTRACT WAS AWARDED.

IN RESPONSE TO SALE INVITATION NO. 36-S-63-54, ISSUED ON MARCH 7, 1963, BY THE DEFENSE SURPLUS SALES OFFICE, KELLY AIR FORCE BASE, TEXAS, THE BARRETT-CRAVENS COMPANY SUBMITTED A BID DATED MARCH 28, 1963, OFFERING TO PURCHASE VARIOUS ITEMS OF ELECTRICAL EQUIPMENT AT THE PRICES SET FORTH IN THE BID. THE BID OF THE BARRETT-CRAVENS COMPANY FOR ITEM NO. 47, COVERING 2,559 GOVERNOR ASSEMBLIES, SHOWED A UNIT PRICE OF $1.72 AND A TOTAL EXTENDED BID PRICE OF $12.04. UPON NOTING THE DISCREPANCY BETWEEN THE UNIT AND THE TOTAL EXTENDED BID PRICES OF THE COMPANY FOR ITEM NO. 47, THE GOVERNMENT SALES CONTRACTING OFFICER CHANGED THE TOTAL EXTENDED BID PRICE FOR THE ITEM FROM $12.04 TO $4,401.48 BY APPLYING THE UNIT BID PRICE SHOWN OF $1.72 EACH TO THE 2,559 ASSEMBLIES COVERED BY THE ITEM PURSUANT TO PARAGRAPH 3 OF THE GENERAL SALE TERMS AND CONDITIONS OF THE INVITATION. SUBSEQUENTLY, THE CONTRACTING OFFICER ACCEPTED THE COMPANY'S BID ON APRIL 5, 1963 AS TO ITEMS NOS. 41, 47, 107 AND 108 IN THE TOTAL AMOUNT OF $5,183.64, THEREBY CONSUMMATING CONTRACT NO. DSA-36-S-1225. BY LETTER DATED APRIL 8, 1963, THE BARRETT-CRAVENS COMPANY ADVISED THE DEFENSE SURPLUS SALES OFFICE THAT AN ERROR HAD BEEN MADE IN THE BID IN THAT IT HAD NOT INTENDED TO BID ON ITEM NO. 47 AND THAT THE PRICES SHOWN FOR THAT ITEM WERE INTENDED FOR ITEM NO. 48. IN VIEW OF THE ERROR THE COMPANY REQUESTS THAT IT BE RELEASED FROM ITEM NO. 47 UNDER THE CONTRACT.

THERE CAN BE NO DOUBT THAT AN ERROR OCCURRED IN ITEM NO. 47 OF THE BID OF THE BARRETT-CRAVENS COMPANY, AS ALLEGED, SINCE BASED ON THE 2,559 GOVERNOR ASSEMBLIES COVERED BY ITEM NO. 47 AN OBVIOUS DISCREPANCY EXISTS BETWEEN THE UNIT PRICE OF $1.72 EACH AND THE EXTENDED TOTAL BID OF $12.04 FOR THAT ITEM. MOREOVER, ON THE BASIS OF A UNIT PRICE OF $1.72 EACH FOR THE SEVEN MOTOR GENERATORS COVERED BY ITEM NO. 48--- THE ITEM FOR WHICH THE COMPANY STATES THAT ITS BID WAS INTENDED--- THERE WOULD HAVE RESULTED A TOTAL EXTENDED BID OF $12.04, AS SHOWN. 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 OF THE INVITATION SHOULD ONLY BE APPLIED, WITHOUT REQUESTING VERIFICATION OF THE BID, WHERE THE CORRECTION RESULTS IN A RELATIVELY MINOR CHANGE IN THE EXTENDED PRICE, OR WHERE THE CIRCUMSTANCES CLEARLY INDICATE THAT THE UNIT PRICE BID ACTUALLY REPRESENTS THE INTENDED PRICE FOR THE PARTICULAR ITEM INVOLVED. WE DO NOT BELIEVE THAT EITHER OF THESE CONDITIONS MAY BE SAID TO HAVE EXISTED IN THIS CASE. SEE B-149918, DATED SEPTEMBER 28, 1962, ADDRESSED TO YOU, AND 37 COMP. GEN. 829 AND THE DECISIONS CITED THEREIN.

ACCORDINGLY, ITEM NO. 47 MAY BE CANCELED FROM CONTRACT NO. DSA-36-S 1225 WITHOUT LIABILITY TO THE BARRETT-CRAVENS COMPANY.

A COPY OF THE ASSISTANT COUNSEL'S LETTER DATED MAY 29, 1963, TOGETHER WITH THE ENCLOSURE, WITH THE EXCEPTION OF THE UNDATED ADMINISTRATIVE REPORT OF THE DEFENSE LOGISTICS SERVICES CENTER AND THE 3RD INDORSEMENT, DATED MAY 14, 1963, OF REGIONAL OFFICE NO. 3, DEFENSE LOGISTICS SERVICES CENTER, MEMPHIS ARMY DEPOT, IS RETURNED HEREWITH.