B-182126, SEP 13, 1974

B-182126: Sep 13, 1974

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PURCHASER WHOSE BID PRICE OF $0.2397 PER POUND ON SCRAP METALS WAS SUBSTANTIALLY HIGHER THAN NEXT HIGH BID OF $0.07777 PER POUND AND CURRENT MARKET APPRAISAL OF $0.10 PER POUND MAY HAVE SCRAP METAL ITEM DELETED FROM SALES CONTACT. CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF POSSIBILITY OF ERROR IN BID AND SHOULD HAVE REQUESTED VERIFICATION BEFORE ACCEPTANCE. BRISTOL'S ORIGINAL BID ON ITEM 30 OF $0.05 PER POUND WAS INCREASED "BY .1897" THROUGH A TIMELY TELEGRAPHIC MODIFICATION. BRISTOL'S MODIFIED BID OF $0.2397 PER POUND WAS THE HIGH BID RECEIVED FOR ITEM 30. WHICH WAS AWARDED TO THAT FIRM. BRISTOL ALLEGES THAT A MISTAKE WAS MADE IN ITS BID IN THAT ITS TELEGRAPHIC MODIFICATION WAS INTENDED TO READ $0.01897 FOR A TOTAL BID OF $0.06897.

B-182126, SEP 13, 1974

PURCHASER WHOSE BID PRICE OF $0.2397 PER POUND ON SCRAP METALS WAS SUBSTANTIALLY HIGHER THAN NEXT HIGH BID OF $0.07777 PER POUND AND CURRENT MARKET APPRAISAL OF $0.10 PER POUND MAY HAVE SCRAP METAL ITEM DELETED FROM SALES CONTACT, SINCE IN VIEW OF SUBSTANTIAL DIFFERENCE BETWEEN PURCHASER'S BID AND NEXT HIGH BID AND CURRENT MARKET APPRAISAL, CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF POSSIBILITY OF ERROR IN BID AND SHOULD HAVE REQUESTED VERIFICATION BEFORE ACCEPTANCE.

BRISTOL METAL COMPANY, INC.:

BY INVITATION FOR BIDS NO. 27-5004, THE DEFENSE PROPERTY DISPOSAL SERVICE, COLUMBUS, OHIO, OFFERED FOR SALE 258 ITEMS OF DEPARTMENT OF DEFENSE SURPLUS PERSONAL PROPERTY. BRISTOL METAL COMPANY, INC., (BRISTOL), SUBMITTED A TIMELY BID FOR 26 ITEMS, INCLUDING ITEM 30 DESCRIBED AS 20,000 POUNDS OF SCRAP TOOL STEEL. BRISTOL'S ORIGINAL BID ON ITEM 30 OF $0.05 PER POUND WAS INCREASED "BY .1897" THROUGH A TIMELY TELEGRAPHIC MODIFICATION. BRISTOL'S MODIFIED BID OF $0.2397 PER POUND WAS THE HIGH BID RECEIVED FOR ITEM 30, WHICH WAS AWARDED TO THAT FIRM, IN ADDITION TO TWO OTHER ITEMS.

BRISTOL ALLEGES THAT A MISTAKE WAS MADE IN ITS BID IN THAT ITS TELEGRAPHIC MODIFICATION WAS INTENDED TO READ $0.01897 FOR A TOTAL BID OF $0.06897, RATHER THAN $0.2397. BRISTOL HAS REQUESTED THAT ITEM 30 BE DELETED FROM ITS CONTRACT.

THE SEVEN OTHER BIDS ON ITEM 30 RANGED FROM $0.0025 TO $0.07777 PER POUND. THE GOVERNMENT'S CURRENT MARKET APPRAISAL VALUE WAS $0.10 PER POUND. UNDER THESE CIRCUMSTANCES, COUNSEL FOR THE DEFENSE PROPERTY DISPOSAL SERVICE EXPRESSES THE OPINION THAT THE CONTRACTING OFFICER SHOULD HAVE REQUESTED VERIFICATION OF BRISTOL'S BID. THE BASIS FOR THE OPINION IS THAT THERE IS A SUBSTANTIAL DISPARITY BETWEEN BRISTOL'S BID ON ITEM 30 AND THE NEXT HIGH BID AND THE CURRENT MARKET APPRAISAL OF THAT ITEM. AGREE THAT THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF ERROR AND THAT THE BID FOR ITEM 30 SHOULD HAVE BEEN VERIFIED PRIOR TO AWARD. COMP. GEN. 199, 202 (1969).

ACCORDINGLY, ITEM 30 MAY BE DELETED FROM BRISTOL'S CONTRACT, AS ADMINISTRATIVELY RECOMMENDED.