B-169688, MAY 27, 1970

B-169688, MAY 27, 1970

SALES--BIDS--MISTAKES--UNIT PRICE V. EXTENSION DIFFERENCE--INTENDED PRICE UNCERTAIN BIDDER ALLEGING SECRETARY'S MISTAKE CAUSED ERROR IN EXTENDED BID PRICE ON 150,000 POUNDS OF GOVERNMENT SURPLUS ALUMINUM SCRAP IS DENIED PROTEST SINCE DETERMINATION OF WHETHER ERROR WAS IN UNIT PRICE OR EXTENDED PRICE WAS NOT ASCERTAINABLE FROM BID FORM ITSELF AS IS REQUIRED FOR APPLICABILITY OF EXCEPTION TO GENERAL RULE PROHIBITING CORRECTION OF ERRONEOUS BID OF CORRECTION RESULTS IN DISPLACEMENT OF OTHERWISE SUCCESSFUL BIDDER. HERE, ALTHOUGH IT IS OBVIOUS THERE WAS MISTAKE IN EITHER UNIT OR EXTENDED PRICE, ERROR COULD HAVE BEEN IN EITHER. SEE COMP. GEN. DECS. CITED.

TO M. D. GOODRICH & COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 30, 1970, CONCERNING YOUR ALLEGATION OF ERROR IN YOUR BID, AND YOUR PROTEST OF AWARD TO ANY OTHER BIDDER, UNDER INVITATION FOR BIDS (IFB) NO. 46-0083 ISSUED BY THE DEFENSE SURPLUS SALES OFFICE, SAN DIEGO, CALIFORNIA.

IFB 41-0083 OFFERED FOR SALE 236 ITEMS OF SURPLUS GOVERNMENT PROPERTY. YOU REQUEST REFORMATION OF YOUR BID ON ITEM 37, WHICH WAS DESCRIBED IN THE INVITATION AS:

"37. ALUMINUM SCRAP: INCLUDING TUBING, BRACKETS, PANELS, HONEYCOMB SIDING, PERSONNEL LOCKERS, BUNK FRAMES, GALLEY EQUIPMENT AND SHOP RESIDUE. WITH FOREIGN ATTACHMENTS NOT TO EXCEED 10% OF TOTAL WEIGHT.

OUTSIDE - STORED IN METAL CONTAINERS AND LOOSE

150,000 POUND"

THE RECORD INDICATES THAT YOU SUBMITTED A UNIT PRICE OF ?1354, AND AN EXTENDED TOTAL PRICE OF $6,770.00 ON ITEM 37. ON REVIEW OF YOUR BID IT WAS NOTED THAT THE UNIT AND EXTENDED PRICES WERE NOT COMPATIBLE WITH THE ADVERTISED QUANTITY OF 150,000 POUNDS SINCE A UNIT PRICE OF ?1354 FOR 150,000 POUNDS WOULD RESULT IN A TOTAL PRICE OF $20,310.00. YOU WERE THERFORE CONTACTED ON APRIL 17, 1970, FOR VERIFICATION OF YOUR BID, AT WHICH TIME YOUR SECRETARY ADVISED THAT AN ERROR HAD BEEN MADE IN PREPARING THE BID, SINCE THE BID HAD BEEN CALCULATED FOR 50,000 POUNDS IN LIEU OF 150,000 POUNDS. WRITTEN CONFIRMATION OF SUCH ADVICE WAS RECEIVED ON APRIL 20, 1970, AT WHICH TIME YOU ADVISED THAT THE ERROR WAS DUE TO A PRICE WRITTEN ON YOUR WORKSHEET BY YOUR SECRETARY WHICH OBLITERATED THE "1" ON THE 150,000 POUNDS, WHICH SUBSEQUENTLY CAUSED YOUR SECRETARY TO USE ONLY 50,000 POUNDS IN COMPUTING THE EXTENDED BID PRICE. UNDER DATE OF APRIL 17, 1970, YOU SUBMITTED A COPY OF YOUR WORKSHEET, TOGETHER WITH A LETTER FROM YOUR SECRETARY, ATTESTING TO THE MISTAKE.

WITH YOUR LETTER OF APRIL 30, 1970, TO THIS OFFICE YOU SUBMITTED YOUR ORIGINAL WORKSHEET AND AN EXPLANATION OF HOW THE ERROR IN ITEM 37 OCCURRED. YOU REQUEST THAT YOUR BID BE CORRECTED TO SHOW AN EXTENDED TOTAL PRICE OF $20,310.00, AND THAT IT BE ACCEPTED IN SUCH CORRECTED FORM.

THE RECORD ESTABLISHES THAT THE CONTRACT WHICH IS TO BE AWARDED FOR ITEM 37 WILL BE A CONTRACT IN THE TOTAL AMOUNT OF THE EXTENDED BID PRICE, AND THAT CORRECTION OF THE PRICE QUOTED BY YOU FOR ITEM 37 WOULD THEREFORE DISPLACE SEVERAL OTHER BIDDERS WHO BID HIGHER EXTENDED BID PRICES THAN THE $6,770.00 PRICE IN YOUR BID. AS A GENERAL RULE, CORRECTION OF AN ERRONEOUS BID WILL NOT BE PERMITTED WHEN TO DO SO WOULD RESULT IN THE DISPLACEMENT OF THE OSTENSIBLE SUCCESSFUL BIDDER. 37 COMP. GEN. 210 (1957). THE ONLY EXCEPTION TO THIS RULE IS WHERE THE ERROR IS OBVIOUS AND THE INTENDED PRICE CAN BE ASCERTAINED FROM THE BID FORM ITSELF, WITHOUT RESORT TO EXTRANEOUS WORKSHEETS OR OTHER BID DOCUMENTS. SEE B-157914, JANUARY 28, 1966; B-155537, JANUARY 7, 1965.

YOU CONTEND IT IS OBVIOUS THAT YOUR UNIT PRICE IS CORRECT AND YOUR EXTENDED PRICE IS INCORRECT. IN SUPPORT OF THIS CONTENTION YOU POINT TO THE FACT THAT THE SECOND AND THIRD HIGH BIDS WERE IN EXCESS OF ?12 PER POUND, AND TO THE FACT THAT YOUR PRIOR BIDS ON THE SAME TYPE OF METAL HAVE CONSISTENTLY RANGED FROM ?11 TO ?14 PER POUND. CONVERSELY, THE REPORT FROM DSA POINTS OUT THAT CORRECTION OF YOUR UNIT PRICE TO CONFORM WITH YOUR EXTENDED BID PRICE WOULD RESULT IN A UNIT PRICE OF ?045 PER POUND, WHICH WOULD BE IN LINE WITH THE TWO LOWEST BIDS OF ?0399 AND ?028999 PER POUND. ADDITIONALLY, WE NOTE THAT THE AMOUNT OF YOUR BID DEPOSIT IS ADEQUATE FOR A BID OF $6,770.00 ON ITEM 37, BUT INADEQUATE FOR A BID OF $20,310.00. UNDER THE CIRCUMSTANCES, WHILE IT IS OBVIOUS THAT THERE IS A MISTAKE IN EITHER THE UNIT PRICE OR THE EXTENDED PRICE, WE MUST CONCLUDE THAT THE INTENDED BID CANNOT BE ASCERTAINED FROM THE BID FORM ITSELF, SINCE THE ERROR COULD HAVE BEEN IN EITHER THE UNIT OR EXTENDED TOTAL PRICE.

ACCORDINGLY, SINCE WE CANNOT DETERMINE FROM THE BID FORM ALONE WHETHER THE ERROR WAS IN THE UNIT PRICE OR EXTENDED TOTAL PRICE, YOUR BID MAY NOT BE CORRECTED, AND YOUR PROTEST AGAINST AWARD TO ANY OTHER BIDDER MUST BE DENIED.