B-156014, FEB. 5, 1965

B-156014: Feb 5, 1965

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GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 25. THE CONTRACTOR'S SALES REPRESENTATIVE ADVISED THAT A STATEMENT THAT THE FEDERAL TAX OF $0.04 PER GALLON WAS EXCLUDED WAS OMITTED INADVERTENTLY FROM THE BID ON WHICH THE CONTRACT IS BASED. THERE WAS SUBMITTED A COPY OF THE HOUSTON TERMINAL POSTED PRICE SHEET SHOWING THE PRICE OF 92 OCTANE REGULAR GASOLINE TO BE $0.125 PER GALLON EXCLUSIVE OF TAXES. OTHER PRICES PER GALLON RECEIVED IN RESPONSE TO THE INVITATION FOR BIDS ON WHICH THE IMMEDIATE CONTRACT IS BASED WERE $0.1399. THE CONTRACTING OFFICER HAS CONCLUDED THAT THERE IS CLEAR AND CONVINCING EVIDENCE THAT A MISTAKE IN BID WAS MADE. HE HAS STATED THAT THE DIFFERENCE BETWEEN THE LOW BIDS AND THE OTHER BIDS SHOULD HAVE PUT HIM ON NOTICE THAT A POSSIBLE ERROR HAD BEEN MADE.

B-156014, FEB. 5, 1965

TO THE HONORABLE LAWSON B. KNOTT, JR., ACTING ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 25, 1965, REQUESTING A DECISION WHETHER RELIEF MAY BE GRANTED TO LA GLORIA OIL AND GAS COMPANY FOR AN ERROR IN BID IT ALLEGED AFTER AWARD OF CONTRACT GS-07S 9756.

THE CONTRACT REQUIRES THE FURNISHING OF GASOLINE AT $0.105 PER GALLON TO THE HOUSTON LOCATION SPECIFIED IN ITEM 142 AND AT $0.115 PER GALLON TO THE HOUSTON LOCATION SPECIFIED IN ITEM 189. THE CONTRACT PROVIDES THAT THE PRICE EXCLUDES THE STATE TAX AND INCLUDES THE FEDERAL TAX.

AFTER AWARD, THE CONTRACTOR'S SALES REPRESENTATIVE ADVISED THAT A STATEMENT THAT THE FEDERAL TAX OF $0.04 PER GALLON WAS EXCLUDED WAS OMITTED INADVERTENTLY FROM THE BID ON WHICH THE CONTRACT IS BASED. THE CONTRACTOR FURNISHED EVIDENCE SHOWING THAT IN RESPONSE TO A PREVIOUS INVITATION FOR BIDS IT BID FOR SUPPLY OF GASOLINE TO THE IDENTICAL LOCATIONS INVOLVED IN THE IMMEDIATE CASE $0.1125 EXCLUSIVE OF ALL STATE AND FEDERAL TAXES. ALSO, THERE WAS SUBMITTED A COPY OF THE HOUSTON TERMINAL POSTED PRICE SHEET SHOWING THE PRICE OF 92 OCTANE REGULAR GASOLINE TO BE $0.125 PER GALLON EXCLUSIVE OF TAXES. OTHER PRICES PER GALLON RECEIVED IN RESPONSE TO THE INVITATION FOR BIDS ON WHICH THE IMMEDIATE CONTRACT IS BASED WERE $0.1399, $0.1444, $0.1464, $0.1549, $0.161 AND $0.164 ON ITEM 142 AND $0.1389, $0.1422, $0.143, $0.1464, $0.1465, $0.15 AND $0.161 ON ITEM 189.

THE CONTRACTING OFFICER HAS CONCLUDED THAT THERE IS CLEAR AND CONVINCING EVIDENCE THAT A MISTAKE IN BID WAS MADE. MOREOVER, HE HAS STATED THAT THE DIFFERENCE BETWEEN THE LOW BIDS AND THE OTHER BIDS SHOULD HAVE PUT HIM ON NOTICE THAT A POSSIBLE ERROR HAD BEEN MADE. YOU INDICATE THAT THE GENERAL SERVICES ADMINISTRATION CONCURS IN THE CONTRACTING OFFICER'S POSITION.

SINCE IT APPEARS THAT THE CONTRACTOR MADE A BONA FIDE ERROR AND THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE PROBABILITY OF ERROR, CORRECTION IS AUTHORIZED OF THE CONTRACT UNIT PRICES ON ITEMS 142 AND 189 TO THE INTENDED PRICES NOT TO EXCEED THE NEXT LOW BID PRICES ON THOSE ITEMS. B-143346, JULY 12, 1960, AND B 138899, MARCH 16, 1959.