B-181836, AUG 2, 1974

B-181836: Aug 2, 1974

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ITEM MAY BE DELETED FROM SURPLUS SALES CONTRACT WHERE UNIT AND TOTAL PRICES SUBMITTED BY SUCCESSFUL BIDDER WERE NOT CONSISTENT WITH THE QUANTITY OF ITEM BUT WERE CONSITENT WITH QUANTITY OF ANOTHER ITEM BIDDER INTENDED TO BID ON AND BID REPRESENTED NEARLY 106 PERCENT OF ORIGINAL PURCHASE PRICE OF ITEM ADVERTISED IN FAIR CONDITION. WAS ALMOST 12 TIMES GREATER THAN NEXT HIGH BID. RELIEF GRANTED BEACUSE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN BID AND REQUESTED NO BID VERIFICATION BEFORE AWARD. WAS SUCCESSFUL BIDDER FOR VARIOUS ITEMS ON SURPLUS SALES INVITATION FOR BIDS (IFB) NO. 49-4027. THE PRICE BID REPRESENTED NEARLY 106 PERCENT OF THE ORIGINAL PURCHASE PRICE OF ITEM 11 WHICH WAS DESCRIBED IN THE IFB AS BEING IN FAIR CONDITION.

B-181836, AUG 2, 1974

ITEM MAY BE DELETED FROM SURPLUS SALES CONTRACT WHERE UNIT AND TOTAL PRICES SUBMITTED BY SUCCESSFUL BIDDER WERE NOT CONSISTENT WITH THE QUANTITY OF ITEM BUT WERE CONSITENT WITH QUANTITY OF ANOTHER ITEM BIDDER INTENDED TO BID ON AND BID REPRESENTED NEARLY 106 PERCENT OF ORIGINAL PURCHASE PRICE OF ITEM ADVERTISED IN FAIR CONDITION, EXCEEDED HIGHEST PREVIOUS AWARD PRICE FOR SIMILAR PROPERTY BY OVER 8 TIME, AND WAS ALMOST 12 TIMES GREATER THAN NEXT HIGH BID. RELIEF GRANTED BEACUSE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN BID AND REQUESTED NO BID VERIFICATION BEFORE AWARD.

BEN LISSAUR CO.:

THE BEN LISSARUR CO. WAS SUCCESSFUL BIDDER FOR VARIOUS ITEMS ON SURPLUS SALES INVITATION FOR BIDS (IFB) NO. 49-4027, ISSUED BY THE ALASKAN SALES OFFICE OF THE DEFENSE SUPPLY AGENCY. AFTER RECEIVING AWARD ON THESE ITEMS, THE FIRM DISCOVERED THAT IT HAD MISTAKENLY SUBMITTED A BID ON ITEM 11 OF THE IFB INSTEAD OF ITEM 13 AS IT HAD INTENDED. CONSEQUENTLY, THE FIRM REQUESTED THAT ITEM 11 BE DELETED FROM ITS CONTRACT.

FOR ITEM 11 THE BIDDER SUBMITTED A UNIT PRICE AND TOTAL PRICE INCONSISTENT WITH THE QUANTITY ADVERTISED FOR ITEM 11, BUT CONSISTENT WITH THE QUANTITY SET FORTH IN ITEM 13. FURTHER, THE PRICE BID REPRESENTED NEARLY 106 PERCENT OF THE ORIGINAL PURCHASE PRICE OF ITEM 11 WHICH WAS DESCRIBED IN THE IFB AS BEING IN FAIR CONDITION. IN ADDITION, THE CONTRACTING ACTIVITY ADVISES THAT THE PRICE SUBMITTED WAS OVER 8 TIMES HIGHER THAN THE HIGHEST PREVIOUS AWARD PRICE FOR SIMILAR PROPERTY AND ALMOST 12 TIMES THE NEXT HIGHEST BID.

IN VIEW OF THIS, WE CONCLUDE THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF THE POSSIBILITY OF ERROR IN THE FIRM'S BID. SINCE NO BID VERIFICATION WAS REQUESTED BEFORE AWARD ITEM 11 MAY BE DELETED FROM THE CONTRACT AS ADMINISTRATIVELY RECOMMENDED.