B-153063, JAN. 15, 1964

B-153063: Jan 15, 1964

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TO THE POSTMASTER GENERAL: REFERENCE IS MADE TO LETTER DATED DECEMBER 11. MELCO'S QUOTATIONS OF $8.20 AND $9.40 FOR ITEMS 2 AND 3 WERE NOT LOW BUT ARE IN LINE WITH THE OTHER BIDS SUBMITTED. THAT A MISTAKE HAD BEEN MADE AND THAT EACH PRICE QUOTED FOR A SET OF CURTAINS WAS INTENDED TO BE THE PRICE OF A SINGLE CURTAIN. WHICH WAS THE BASIS UPON WHICH BIDS WERE SOLICITED FOR FURNISHING SIDE CURTAINS TO OTHER VEHICLE MAINTENANCE FACILITIES IN THE SAME REGION. WE AGREE THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF A POSSIBLE ERROR AND SHOULD HAVE REQUESTED VERIFICATION.

B-153063, JAN. 15, 1964

TO THE POSTMASTER GENERAL:

REFERENCE IS MADE TO LETTER DATED DECEMBER 11, 1963, FROM THE ACTING ASSISTANT POSTMASTER GENERAL, REQUESTING A DECISION AS TO WHETHER MELCO COVER COMPANY CAN BE RELIEVED OF RESPONSIBILITY FOR SUPPLYING SCOOTER CURTAINS TO THE VEHICLE MAINTENANCE FACILITY, MIAMI, FLORIDA, UNDER CONTRACT NO. 641045, BECAUSE OF AN ALLEGED ERROR IN BID.

ITEMS 1, 4, 5 AND 6 OF THE INVITATION COVER SETS OF SIDE CURTAINS, TWO TO A SET, AND ITEMS 2 AND 3 COVER FRONT SKIRTS, SINGLY. NELCO RECEIVED THE AWARD AS LOW BIDDER ON ITEMS 1, 4, 5 AND 6 IN THE AMOUNTS OF $9.70 FOR ITEM 1 AND $9.95 FOR ITEMS 4, 5 AND 6. THE NEXT LOW BIDS ON THESE ITEMS RANGE FROM $15.30 TO $19.70. MELCO'S QUOTATIONS OF $8.20 AND $9.40 FOR ITEMS 2 AND 3 WERE NOT LOW BUT ARE IN LINE WITH THE OTHER BIDS SUBMITTED.

UPON RECEIPT OF AN ORDER FOR 10 SETS OF CURTAINS AT $9.70, MELCO ADVISED BY LETTER OF AUGUST 29, 1963, THAT A MISTAKE HAD BEEN MADE AND THAT EACH PRICE QUOTED FOR A SET OF CURTAINS WAS INTENDED TO BE THE PRICE OF A SINGLE CURTAIN, WHICH WAS THE BASIS UPON WHICH BIDS WERE SOLICITED FOR FURNISHING SIDE CURTAINS TO OTHER VEHICLE MAINTENANCE FACILITIES IN THE SAME REGION.

FROM A COMPARISON OF THE PRICES SUBMITTED BY ALL BIDDERS ON THE PRESENT PROCUREMENT AND AN EXAMINATION OF THE PRICES BID BY MELCO AND OTHERS ON SIMILAR PROCUREMENTS, WE AGREE THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF A POSSIBLE ERROR AND SHOULD HAVE REQUESTED VERIFICATION, AND THAT THE NATURE OF THE ERROR HAS BEEN ESTABLISHED SATISFACTORILY.

ACCORDINGLY, MELCO COVER COMPANY MAY BE RELIEVED OF ANY OBLIGATION FOR FURTHER PERFORMANCE. HOWEVER, PAYMENT FOR THE FIVE SETS OF CURTAINS ALREADY DELIVERED MAY NOT EXCEED THE AMOUNT OF THE NEXT LOW BID. SEE 37 COMP. GEN. 685; ID. 654 AND 398. A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.