B-163371, FEB. 5, 1968

B-163371: Feb 5, 1968

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

ADVISED THAT BID OF $511.11 WAS TOTAL INTENDED PRICE FOR 4 UNITS RATHER THAN $511.11 EACH MAY HAVE PRICE ADJUSTED SINCE TOTAL BID PRICE PROPERLY REFLECTS PRICE OF $511.11 RATHER THAN $2. 044.44 SO THAT UNIT PRICE WAS INTENDED FOR ENTIRE LOT. CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE THAT LOT PRICE BID WAS INTENDED AND REQUESTED VERIFICATION. TO GENERAL HEDLUND: REFERENCE IS MADE TO LETTER DATED JANUARY 18. BIDS WERE OPENED ON NOVEMBER 22. THE ONLY BIDDER ON ITEM 189 IN THE AMOUNT OF $511 WAS AWARDED THAT ITEM CONSISTING OF FOUR UNITS ON NOVEMBER 29. THE ITEM WAS DESCRIBED IN THE SALES INVITATION AS FOLLOWS: "189. THE CONTRACTOR NOTIFIED THE SALES CONTRACTING OFFICER THAT HIS BID OF $511.11 ON THIS ITEM WAS INTENDED AS A TOTAL BID FOR THE FOUR UNITS RATHER THAN $511.11 EACH.

B-163371, FEB. 5, 1968

BIDS - MISTAKES - JUSTIFICATION DECISION TO DEFENSE SUPPLY AGENCY APPROVING PRICE ADJUSTMENT TO CARL WINNER ON ACCOUNT OF MISTAKE IN BID UNDER INVITATION FOR PURCHASE OF BOWLING EQUIPMENT. ONLY BIDDER, WHO, AFTER OPENING, ADVISED THAT BID OF $511.11 WAS TOTAL INTENDED PRICE FOR 4 UNITS RATHER THAN $511.11 EACH MAY HAVE PRICE ADJUSTED SINCE TOTAL BID PRICE PROPERLY REFLECTS PRICE OF $511.11 RATHER THAN $2,044.44 SO THAT UNIT PRICE WAS INTENDED FOR ENTIRE LOT. THEREFORE, CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE THAT LOT PRICE BID WAS INTENDED AND REQUESTED VERIFICATION.

TO GENERAL HEDLUND:

REFERENCE IS MADE TO LETTER DATED JANUARY 18, 1968, FROM THE ASSISTANT COUNSEL, REQUESTING A DECISION AS TO WHETHER RELIEF MAY BE GRANTED TO CARL WINNER FOR A MISTAKE IN BID ALLEGED AFTER AWARD OF SALES CONTRACT NO. 25- 8033-140 UNDER DSA SALES INVITATION NO. 25-8033.

BIDS WERE OPENED ON NOVEMBER 22, 1967, AND CARL WINNER, THE ONLY BIDDER ON ITEM 189 IN THE AMOUNT OF $511 WAS AWARDED THAT ITEM CONSISTING OF FOUR UNITS ON NOVEMBER 29, 1967, FOR $2,044.44. THE ITEM WAS DESCRIBED IN THE SALES INVITATION AS FOLLOWS:

"189. LANES, BOWLING: 1966-67 ABC SANCTIONED, 7/8 INCH BOARD LANES WITH 16 FOOT APPROACHES, SURFACE RETURNS WITH BRUNSWICK -IN-LINE- BALL RETURNS, COMPLETE WITH THE FOLLOWING ACCESSORIES:

"2 EA. - SCORE TABLES

2 EA. - SCORE CHAIRS

2 EA. - -L- SHAPED WOOD BOWLERS SETTEES

3 EA. - BALL STORAGE RACKS, 21 BALL CAPACITY

"INSIDE - USED - GOOD CONDITION

TOTAL COST $16,000

EST. TOTAL WT. 16,000 LBS. 4 LANES"

UPON RECEIPT OF THE NOTICE OF AWARD, THE CONTRACTOR NOTIFIED THE SALES CONTRACTING OFFICER THAT HIS BID OF $511.11 ON THIS ITEM WAS INTENDED AS A TOTAL BID FOR THE FOUR UNITS RATHER THAN $511.11 EACH. UNIT PRICE BIDS WERE SUBMITTED ON 20 ITEMS BY THE CONTRACTOR, THE SUM OF WHICH WAS EQUAL TO THE TOTAL AMOUNT OF HIS BID ENTERED ON STANDARD FORM 114-A, SALE OF GOVERNMENT PROPERTY, BID AND AWARD. THE CONTRACTOR HAS REQUESTED RESCISSION OR REFORMATION OF THE CONTRACT TO REFLECT A UNIT PRICE OF $127.777 AND A TOTAL PRICE OF $511.11 FOR ITEM 189. THE SALES CONTRACTING OFFICER HAS REPORTED THAT HAD THE UNIT PRICE BIDS OF CARL WINNER BEEN CAREFULLY EXAMINED, HIS BID FOR ITEM 189 WOULD HAVE REQUIRED VERIFICATION PRIOR TO AWARD. BOTH THE SALES CONTRACTING OFFICER AND THE ACTING COUNSEL, DEFENSE LOGISTICS SERVICES CENTER, HAVE RECOMMENDED THAT CONTRACT NO. 25-8033-140 BE REFORMED TO SHOW A UNIT PRICE OF $127.777 AND A TOTAL PRICE OF $511.11 FOR ITEM 189.

THE CONTRACTOR HAS SATISFACTORILY EXPLAINED WHY HE BELIEVED A TOTAL BID PRICE WAS REQUIRED SINCE ITEM 189 WAS OFFERED AS A UNIT. MOREOVER, A BID OF $511.11 FOR EACH OF THE FOUR LANES WOULD HAVE RESULTED IN AN AMOUNT GROSSLY IN EXCESS OF THE TOTAL AMOUNT SHOWN BY THE CONTRACTOR ON THE FACE OF HIS BID FOR THE 20 ITEMS. SINCE THE TOTAL BID PRICE SHOWN ON THE FACE OF THE BID CORRECTLY REFLECTS A BID OF $511.11 RATHER THAN $2,044.44 FOR ITEM 189, WE FEEL THAT A UNIT PRICE FOR THE ENTIRE LOT DESCRIBED IN ITEM 189 WAS INTENDED. IN VIEW THEREOF, THE SALES CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE THAT A LOT PRICE BID WAS INTENDED, AND VERIFICATION OF THE BID SHOULD HAVE BEEN MADE.

ACCORDINGLY, AND SINCE CARL WINNER SUBMITTED THE ONLY BID ON ITEM 189, THE CONTRACT PRICE MAY BE ADJUSTED TO REFLECT A TOTAL PRICE OF $511 FOR THE ITEM, AS ADMINISTRATIVELY RECOMMENDED.