B-152264, NOV. 7, 1963

B-152264: Nov 7, 1963

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TO THE SECRETARY OF AGRICULTURE: REFERENCE IS MADE TO A LETTER DATED AUGUST 5. WAS ERRONEOUSLY RECORDED ON THE ABSTRACT OF BIDS AS BEING$177.27. ITEM 14 WAS AWARDED TO MOTTAZ MOTORS AS THE HIGHEST BIDDER ON THAT ITEM AS SHOWN BY THE ABSTRACT OF BIDS. THE ERRONEOUS AWARD WAS NOT DISCOVERED UNTIL MONTHS LATER WHEN THE SALES ACTIVITY RECEIVED AN INQUIRY FROM MR. HAHN INQUIRED WHY THE AWARD OF ITEM 14 WAS MADE FOR THE AMOUNT OF $127.77 WHEN HE KNEW THAT TWO HIGHER BIDS OF $275 AND $214.50 HAD BEEN SUBMITTED BY TWO OTHER BIDDERS. IT IS REPORTED THAT IN CHECKING THE ADMINISTRATIVE FILE THE SALES ACTIVITY FOUND THAT IT HAD NEVER RECEIVED THE $275 BID AND THAT THE BID OF $214.50 HAD BEEN REJECTED BECAUSE OF THE BIDDER'S FAILURE TO SIGN THE BID FORM.

B-152264, NOV. 7, 1963

TO THE SECRETARY OF AGRICULTURE:

REFERENCE IS MADE TO A LETTER DATED AUGUST 5, 1963, FROM THE ACTING DIRECTOR, NORTHERN ADMINISTRATIVE DIVISION, AGRICULTURAL RESEARCH SERVICE, MINNEAPOLIS, MINNESOTA, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN IN REGARD TO AN AWARD MADE IN ERROR TO MOTTAZ MOTORS, COLUMBIA, MISSOURI.

BY INVITATION NO. 136-N-ARS-63 THE AGRICULTURAL RESEARCH SERVICE, MINNEAPOLIS, MINNESOTA, REQUESTED BIDS FOR THE PURCHASE FROM THE GOVERNMENT OF, AMONG OTHER ITEMS, ONE 1948 FORD 1/2 TON PICK-UP TRUCK, ITEM 14. IN RESPONSE MOTTAZ MOTORS SUBMITTED A BID WHEREIN IT OFFERED TO PURCHASE ITEM 14 AT A PRICE OF $127.77. THE COMPANY'S BID PRICE, HOWEVER, WAS ERRONEOUSLY RECORDED ON THE ABSTRACT OF BIDS AS BEING$177.27. ON JUNE 6, 1963, ITEM 14 WAS AWARDED TO MOTTAZ MOTORS AS THE HIGHEST BIDDER ON THAT ITEM AS SHOWN BY THE ABSTRACT OF BIDS.

THE ERRONEOUS AWARD WAS NOT DISCOVERED UNTIL MONTHS LATER WHEN THE SALES ACTIVITY RECEIVED AN INQUIRY FROM MR. HAHN OF THE HOLDING ACTIVITY REGARDING THE AWARD OF ITEM 14 UNDER THE INVITATION IN QUESTION. MR. HAHN INQUIRED WHY THE AWARD OF ITEM 14 WAS MADE FOR THE AMOUNT OF $127.77 WHEN HE KNEW THAT TWO HIGHER BIDS OF $275 AND $214.50 HAD BEEN SUBMITTED BY TWO OTHER BIDDERS.

IT IS REPORTED THAT IN CHECKING THE ADMINISTRATIVE FILE THE SALES ACTIVITY FOUND THAT IT HAD NEVER RECEIVED THE $275 BID AND THAT THE BID OF $214.50 HAD BEEN REJECTED BECAUSE OF THE BIDDER'S FAILURE TO SIGN THE BID FORM. IT WAS ALSO DISCOVERED THAT THE AWARD OF ITEM 14 TO MOTTAZ MOTORS ON THE BASIS OF A PRICE OF $177.27 HAD BEEN MADE IN ERROR AND THAT THE ACTUAL BID PRICE SUBMITTED BY THE COMPANY FOR THE ITEM IN QUESTION WAS $127.77. IT ALSO IS REPORTED THAT A CHECK FOR $127.77 HAS BEEN RECEIVED FROM MOTTAZ MOTORS AND THAT THE TRUCK COVERED BY ITEM 14 HAS BEEN PICKED UP BY MOTTAZ MOTORS AND RESOLD TO A THIRD PARTY. THE RECORD INDICATES THAT THE CORRECT AWARD FOR ITEM 14 SHOULD HAVE BEEN MADE TO MR. WILLIAM DALE CLAK, COLUMBIA, MISSOURI, WHO SUBMITTED A BID OF $166.57 FOR THAT ITEM.

SINCE MOTTAZ MOTORS WAS NOT RESPONSIBLE FOR THE ERRONEOUS AWARD BEING MADE TO IT AND SINCE THE ITEM IN QUESTION HAS ALREADY BEEN SOLD BY THAT COMPANY TO A THIRD PARTY, WE ARE OF THE OPINION THAT NO FURTHER ACTION OTHER THAN CORRECTION OF THE AMOUNT SHOWN ON THE STATEMENT AND CERTIFICATE OF AWARD FOR ITEM 14 NEED BY TAKEN BY THE SALES ACTIVITY IN THE MATTER.