B-176488, AUG 11, 1972

B-176488: Aug 11, 1972

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SALES CONTRACT - INADEQUATE VERIFICATION OF BID - RECISION DECISION RECOMMENDING THAT A SALES CONTRACT AWARDED TO MILLER COMPRESSING COMPANY FOR THE PURCHASE OF IRON AND ALUMINUM SCRAP BE RESCINDED BECAUSE THE REQUEST FOR VERIFICATION OF THE BID PRICE WAS INADEQUATE IN THAT IT DID NOT ADVISE THE BIDDER OF THE BASIS OF THE SUSPECTED ERROR (THE DISPARITIES BETWEEN THE CURRENT MARKET APPRAISAL. RECOMMENDS THAT A CONTRACT AWARDED MILLER COMPRESSING COMPANY FOR WRECKED AIRCRAFT ALUMINUM AND IRON SCRAP AT $0.062 PER POUND UNDER ITEM 88 OF SALES INVITATION FOR BIDS NO. 27-2128 BE RESCINDED ON THE GROUNDS THAT BIDS ON SCRAP METAL DO NOT VARY GREATLY AND THAT THE VERIFICATION WHICH WAS REQUESTED BEFORE AWARD WAS INADEQUATE BECAUSE IT DID NOT APPRISE THE BIDDER OF THE DISPARITIES BETWEEN THE CURRENT MARKET APPRAISAL OF $0.001 PER POUND AND THE NEXT HIGH BID OF $0.0185 PER POUND.

B-176488, AUG 11, 1972

SALES CONTRACT - INADEQUATE VERIFICATION OF BID - RECISION DECISION RECOMMENDING THAT A SALES CONTRACT AWARDED TO MILLER COMPRESSING COMPANY FOR THE PURCHASE OF IRON AND ALUMINUM SCRAP BE RESCINDED BECAUSE THE REQUEST FOR VERIFICATION OF THE BID PRICE WAS INADEQUATE IN THAT IT DID NOT ADVISE THE BIDDER OF THE BASIS OF THE SUSPECTED ERROR (THE DISPARITIES BETWEEN THE CURRENT MARKET APPRAISAL, MILLER'S BID, AND THE SECOND HIGH BID).

TO GENERAL WALLACE H. ROBINSON:

BY LETTER DSAH-G DATED JULY 6, 1972, WITH ENCLOSURES, THE ASSISTANT COUNSEL, HEADQUARTERS, CAMERON STATION, IN CONCURRENCE WITH THE DEFENSE LOGISTICS SERVICES CENTER, RECOMMENDS THAT A CONTRACT AWARDED MILLER COMPRESSING COMPANY FOR WRECKED AIRCRAFT ALUMINUM AND IRON SCRAP AT $0.062 PER POUND UNDER ITEM 88 OF SALES INVITATION FOR BIDS NO. 27-2128 BE RESCINDED ON THE GROUNDS THAT BIDS ON SCRAP METAL DO NOT VARY GREATLY AND THAT THE VERIFICATION WHICH WAS REQUESTED BEFORE AWARD WAS INADEQUATE BECAUSE IT DID NOT APPRISE THE BIDDER OF THE DISPARITIES BETWEEN THE CURRENT MARKET APPRAISAL OF $0.001 PER POUND AND THE NEXT HIGH BID OF $0.0185 PER POUND.

WE HAVE REVIEWED THE ADMINISTRATIVE FILE, AND ON THE BASIS OF THE INFORMATION CONTAINED THEREIN, WE AGREE THAT THE VERIFICATION WAS INADEQUATE. ACCORDINGLY, THE SALES CONTRACT MAY BE RESCINDED AS RECOMMENDED.