B-158030, DEC. 15, 1965

B-158030: Dec 15, 1965

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TO THE SECRETARY OF THE TREASURY: REFERENCE IS MADE TO A LETTER DATED NOVEMBER 10. TO3CG-3685 IS BASED. 500 WAS RECEIVED FROM MR. DEMPSEY AND THAT SUCH BID WAS ACCEPTED ON SEPTEMBER 16. IT IS REPORTED THAT ON SEPTEMBER 20. S-03-1 66 WAS A MISUNDERSTANDING ON MY PART. I WAS OF THE OPINION THAT I WAS BIDDING TO RECEIVE. 1965) FROM SANDY HOOK ASKING IF MY ESTIMATE WAS STILL GOOD. I WENT TO THE STATION AND PICKED UP WHAT I THOUGHT WERE A STANDARD BID FORM AS ARE USED BY THE GOVERNMENT FOR SUPPLIERS TO FURNISH GOODS AND SERVICES. TIME WAS OF THE ESSENCE BECAUSE THE DUE DATE OF THE BID OPENING WAS 11:00 A.M. AS I DID NOT HAVE TIME TO HAVE A CHECK CERTIFIED I SUBMITTED MONEY ORDERS IN THE AMOUNT OF $300.

B-158030, DEC. 15, 1965

TO THE SECRETARY OF THE TREASURY:

REFERENCE IS MADE TO A LETTER DATED NOVEMBER 10, 1965, WITH ENCLOSURES, FROM THE COMPTROLLER, UNITED STATES COAST GUARD HEADQUARTERS, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH MR. JOSEPH A. DEMPSEY, HIGHLANDS, NEW JERSEY, ALLEGES HE MADE IN HIS BID ON WHICH CONTRACT NO. TO3CG-3685 IS BASED.

THE UNITED STATES COAST GUARD, NEW YORK, NEW YORK, BY INVITATION NO. S-03 -1-66 REQUESTED BIDS FOR THE SALE AND OFF-SITE REMOVAL OF A TWO AND ONE- HALF STORY FRAME BUILDING NO. 530, LOCATED AT SANDY HOOK STATION, FORT HANCOCK, NEW JERSEY.

THE RECORD INDICATES THAT ONLY ONE BID IN THE AMOUNT OF $1,500 WAS RECEIVED FROM MR. JOSEPH A. DEMPSEY AND THAT SUCH BID WAS ACCEPTED ON SEPTEMBER 16, 1965. IT IS REPORTED THAT ON SEPTEMBER 20, 1965, MR. DEMPSEY VISITED THE SALES OFFICE AND ADVISED THE CONTRACTING OFFICER THAT HE HAD MADE A GROSS MISTAKE BY USING THE SALE FORM IN SUBMITTING HIS BID WHICH HE INTENDED AS AN OFFER TO DEMOLISH THE BUILDING AT COAST GUARD EXPENSE AND NOT AS AN OFFER TO BUY THE BUILDING. IN A CONFIRMING LETTER DATED SEPTEMBER 29, 1965, MR. DEMPSEY STATED---

"PLEASE BE INFORMED THAT THE SALE OF GOVERNMENT PROPERTY NO. S-03-1 66 WAS A MISUNDERSTANDING ON MY PART. I WAS OF THE OPINION THAT I WAS BIDDING TO RECEIVE, RATHER THAN PAY THE GOVERNMENT THE SUM OF $1500, FOR THE DEMOLITION OF THE BUILDING.

"ON JULY 1, 1965 I SUBMITTED AN INFORMAL QUOTATION TO THE SANDY HOOK STATION IN WHICH I SAID THAT I WOULD DO THE JOB FOR THE SUM OF $1500. SINCE THEN, I RECEIVED A PHONE MESSAGE (SEPTEMBER 15, 1965) FROM SANDY HOOK ASKING IF MY ESTIMATE WAS STILL GOOD. I REPLIED IN THE AFFIRMATIVE. BECAUSE OF THE CALL, I WENT TO THE STATION AND PICKED UP WHAT I THOUGHT WERE A STANDARD BID FORM AS ARE USED BY THE GOVERNMENT FOR SUPPLIERS TO FURNISH GOODS AND SERVICES. TIME WAS OF THE ESSENCE BECAUSE THE DUE DATE OF THE BID OPENING WAS 11:00 A.M. EDS SEPTEMBER 15, 1965. AS I DID NOT HAVE TIME TO HAVE A CHECK CERTIFIED I SUBMITTED MONEY ORDERS IN THE AMOUNT OF $300. WITH MY BID.

"MY RECEIPT FOR THE CERTIFIED MAIL SHOWS THAT THE BID WAS MAILED SEPTEMBER 15, 1965, AND RECEIVED BY YOUR OFFICE SEPTEMBER 16, 1965 AT 10:50.

"I WOULD ALSO LIKE TO STATE THE BUILDING IS NOT WORTH MOVING TO ANOTHER SITE.

"IN VIEW OF THE ABOVE FACTS I FEEL THAT I AM ENTITLED TO MY DEPOSIT OF $300.'

THE RECORD INDICATES THAT PRIOR TO THE ISSUANCE OF THE SUBJECT INVITATION, MR. DEMPSEY WAS REQUESTED BY THE COMMANDING OFFICER, SANDY HOOK COAST GUARD STATION, TO SUBMIT A QUOTATION FOR THE REMOVAL OF BUILDING NO. 530 AND THAT IN A LETTER DATED JULY 1, 1965, MR. DEMPSEY OFFERED TO DEMOLISH THE BUILDING FOR A PRICE OF $1,500. IT ALSO INDICATES THAT THE BID IN QUESTION WAS SUBMITTED BY MR. DEMPSEY IN RESPONSE TO THE SPECIFIC REQUEST OF THE COMMANDING OFFICER. IT IS REPORTED THAT THE BUILDING INVOLVED IS LOCATED ON COAST GUARD PROPERTY, A DISTANCE OF APPROXIMATELY SIX MILES FROM ANY NEARBY PRIVATELY OWNED PROPERTY. THE CONTRACTING OFFICER STATES THAT IT IS THE OPINION OF HIS OFFICE THAT IT WOULD NOT BE PRACTICAL TO MOVE THE BUILDING IN ITS CONDITION OVER SUCH A CONSIDERABLE DISTANCE SINCE WHILE THE BUILDING IS IN FAIR CONDITION STRUCTURALLY, ITS INTERIOR IS IN VERY POOR CONDITION, HAVING NO HEAT, POWER OR SANITARY FACILITIES. THE CONTRACTING OFFICER ALSO STATES THAT IT IS HIS OPINION THAT IT IS REASONABLE TO EXPECT THAT THE GOVERNMENT SHOULD HAVE REALIZED THAT A MISTAKE IN BID MAY HAVE BEEN MADE AND THAT IT SHOULD HAVE REQUESTED VERIFICATION OF THE BID PRIOR TO ITS ACCEPTANCE THEREOF. HAVING REGARD FOR THE FACT THAT APPROXIMATELY TWO MONTHS PRIOR TO SUBMISSION OF THE BID THE CONTRACTOR HAD OFFERED TO REMOVE THE BUILDING AT A COST TO THE GOVERNMENT OF $1,500, WE AGREE WITH THE CONTRACTING OFFICER THAT HE SHOULD HAVE BEEN ON NOTICE OF A POSSIBLE ERROR IN THE BID. ACCORDINGLY, CONTRACT NO. TO3CG-3685 MAY BE CANCELED WITHOUT LIABILITY TO MR. DEMPSEY.