B-178675, JUL 9, 1973
Highlights
(GISCO) IN ITS BID ON WHICH CONTRACT NO. 53500-PH3-960 IS BASED. SECRETARY: REFERENCE IS MADE TO LETTER 1510-2.4 (552) DATED MAY 14. (GISCO) TO HAVE BEEN MADE IN ITS BID UPON WHICH CONTRACT NO. 53500-PH3-960 IS BASED. THE ONLY OTHER RESPONSIVE BID WAS IN THE TOTAL AMOUNT OF $18. THE GOVERNMENT ESTIMATE FOR THE EQUIPMENT WAS $15. THE CONTRACT FOR THE ITEMS WAS AWARDED TO GISCO. GISCO ADVISED THE CONTRACTING OFFICE THAT THE PRICES QUOTED IN THE BID WERE ERRONEOUS BECAUSE THEY WERE BASED ON PRICES IN AN OLD PRICE LIST OF ITS SWISS SUPPLIER. THE TOTAL PRICE WOULD HAVE BEEN $18. THE CONTRACTING OFFICER HAD NO REASON TO SUSPECT ERROR SINCE THE GISCO BID WAS IN LINE WITH THE ONLY OTHER RESPONSIVE BID AND THE GOVERNMENT ESTIMATE.
B-178675, JUL 9, 1973
DECISION ADVISING OF ACTION TO BE TAKEN ON AN ALLEGED ERROR BY GEOPHYSICAL INSTRUMENT & SUPPLY CO. (GISCO) IN ITS BID ON WHICH CONTRACT NO. 53500-PH3-960 IS BASED.
TO MR. SECRETARY:
REFERENCE IS MADE TO LETTER 1510-2.4 (552) DATED MAY 14, 1973, WITH ENCLOSURES, FROM THE DEPUTY ASSISTANT SECRETARY, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY THE GEOPHYSICAL INSTRUMENT & SUPPLY CO. (GISCO) TO HAVE BEEN MADE IN ITS BID UPON WHICH CONTRACT NO. 53500-PH3-960 IS BASED.
INVITATION FOR BIDS NO. P-3-167 REQUESTED BIDS FOR FURNISHING FIVE ITEMS USED WITH SURVEYING INSTRUMENTS AND RELATED EQUIPMENT. GISCO OFFERED TO FURNISH THE EQUIPMENT DESCRIBED UNDER ITEMS 1 THROUGH 5 FOR A TOTAL PRICE OF $16,738.60. THE ONLY OTHER RESPONSIVE BID WAS IN THE TOTAL AMOUNT OF $18,417.50. THE GOVERNMENT ESTIMATE FOR THE EQUIPMENT WAS $15,837. FEBRUARY 15, 1973, THE CONTRACT FOR THE ITEMS WAS AWARDED TO GISCO.
BY LETTER DATED FEBRUARY 21, 1973, GISCO ADVISED THE CONTRACTING OFFICE THAT THE PRICES QUOTED IN THE BID WERE ERRONEOUS BECAUSE THEY WERE BASED ON PRICES IN AN OLD PRICE LIST OF ITS SWISS SUPPLIER. THE COMPANY STATED THAT IF THE CURRENT PRICE LIST HAD BEEN USED IN COMPUTING THE BID PRICES, THE TOTAL PRICE WOULD HAVE BEEN $18,187 INSTEAD OF $16,738.60. THE COMPANY REQUESTED THAT THE TOTAL PRICE FOR THE EQUIPMENT BE INCREASED TO $18,187. IN SUPPORT OF THE ALLEGATION OF ERROR, THE COMPANY SUBMITTED COPIES OF THE OLD AND CURRENT PRICE LISTS OF ITS SUPPLIER. HOWEVER, WE FIND NO BASIS TO INCREASE THE CONTRACT PRICE AS REQUESTED SINCE THE CONTRACTING OFFICER MADE AWARD WITHOUT NOTICE OF POSSIBLE ERROR. THE CONTRACTING OFFICER HAD NO REASON TO SUSPECT ERROR SINCE THE GISCO BID WAS IN LINE WITH THE ONLY OTHER RESPONSIVE BID AND THE GOVERNMENT ESTIMATE.
ACCORDINGLY, THE REQUEST FOR AN INCREASE IN THE CONTRACT PRICE IS DENIED.
THE ENCLOSURES ACCOMPANYING THE MAY 14 LETTER ARE RETURNED AS REQUESTED.