B-131515, JUL. 8, 1957

B-131515, JUL. 8, 1957

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED JUNE 10, 1957, WITH ENCLOSURES, FROM THE OFFICE OF THE CHIEF, ADJUDICATIONS BRANCH, SETTLEMENTS DIVISION, AIR FORCE FINANCE CENTER, FURNISHING THE REPORT REQUESTED BY OUR OFFICE RELATIVE TO AN ERROR THE J. M. TULL METAL AND SUPPLY CO., INC., ATLANTA, GEORGIA, ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. (01-600) 57-6326 IS BASED.

IN RESPONSE TO BID REQUEST NO. RFP/01-600) 57-1092, ISSUED BY THE MAXWELL AIR FORCE BASE, ALABAMA, THE J. M. TULL METAL AND SUPPLY CO., INC., SUBMITTED A BID DATED JANUARY 11, 1957, IN PART, AS FOLLOWS:

TABLE ITEM QUANTITY UNIT NO. SUPPLIES OR SERVICES (NO. OF UNITS) UNIT PRICE AMOUNT 4 6800- STEEL, CARBON DRILL ROD 2 INCH 21 FT. FT. .495 412455 -5 DIA SPHEROIDIZE ANNEALED COND

CLASS FI-W1-10, SPEC QQ-S-00779

GRADE 3. COMMERCIAL POLISHED

DRILL ROD--- 224 LBS.

THE BID OF THE CORPORATION WAS ACCEPTED AS TO ITEM 4 AND OTHER ITEMS ON FEBRUARY 26, 1957, AND ON MARCH 21, 1957, BY CHANGE NO. 1, THE QUANTITY OF ITEM 4 WAS REDUCED FROM 21 FEET TO 18 FEET.

BY LETTER DATED MARCH 20, 1957, THE CORPORATION TRANSMITTED TO THE FINANCE OFFICE AT THE BASE AN INVOICE DATED MARCH 19, 1957, IN THE AMOUNT OF $96.15, COVERING 18 FEET OF 2 INCH DRILL ROD, ITEM 4 OF THE INVITATION, AND REQUESTED THAT SUCH INVOICE BE SUBSTITUTED FOR AN ALLEGED INCORRECT INVOICE PREVIOUSLY MAILED TO THAT OFFICE. THE CORPORATION STATED THAT, ON THE PRIOR INVOICE, THE DRILL ROD WAS INCORRECTLY INVOICED AT A UNIT PRICE OF $0.495 PER FOOT WITH AN EXTENSION OF $8.91, WHEREAS IT SHOULD HAVE BEEN INVOICED AT A UNIT PRICE OF $0.495 PER POUND WITH AN EXTENSION OF $96.15. IN A LETTER DATED APRIL 1, 1957, THE CONTRACTING OFFICER ADVISED THE CORPORATION THAT HE WAS WITHOUT AUTHORITY TO CORRECT THE UNIT PRICE OF THE DRILL ROD.

IN A LETTER DATED APRIL 15, 1957, ADDRESSED TO OUR OFFICE, THE J. M. TULL METAL AND SUPPLY CO., INC., STATED---

"IN SUBMITTING OUR QUOTATION, WE CHANGED THE QUANTITY TO 21 FT. TO CONFORM TO STANDARD 3 FT. LENGTHS, AND WE TYPED IN COMMERCIAL POLISHED DRILL ROD, 224 LBS. THE CORRECT PRICE FOR THE MATERIAL IS ?495 PER LB. HOWEVER, OUR TYPIST INADVERTENTLY FAILED TO TYPE IN "LB., " AND, THEREFORE, OUR BID WAS ACCEPTED ON THE BASIS OF ?495 PER FT., RATHER THAN ?495 PER LB.

"THIS DRILL ROD WEIGHS 10.68 LBS. PER FT., THEREFORE, THE MERCHANDISE IS WORTH $5.28 PER FT., RATHER THAN ?495 PER FT.'

IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION, BY LETTER DATED APRIL 24, 1957, SUBMITTED ITS SUPPLIER'S PRINTED PRICE LIST, WHICH SPECIFIES A PRICE OF $0.455 PER POUND FOR 2 INCH COMMERCIAL POLISHED DRILL ROD IN 3-FOOT LENGTHS AND IN QUANTITIES OF 200-499 POUNDS, AND UNDER WAREHOUSE EXTRAS, THERE APPEARS THE STATEMENT THAT THERE IS A WAREHOUSE CHARGE OF $0.04 PER POUND TO POINTS EAST OF THE MISSISSIPPI RIVER, MAKING A TOTAL PRICE OF $0.495 PER POUND. IN ITS LETTER OF APRIL 24, 1957, THE CORPORATION STATED THAT EACH FOOT OF THE 2 INCH DRILL ROD WEIGHTS 10.68 POUNDS OR APPROXIMATELY 32 POUNDS PER 3 FOOT LENGTH AND THAT THE CORRECT PER FOOT PRICE FOR THE DRILL ROD IS $5.2866.

ORDINARILY, WHERE ONLY ONE BID IS RECEIVED ON AN ITEM--- AS IN THE PRESENT CASE--- THERE IS NO BASIS FOR COMPARISON OF BIDS; HENCE, THERE IS NOTHING TO PLACE THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF ERROR IN THE BID. SEE 17 COMP. GEN. 560; 26 ID. 415. HOWEVER, IN AN UNDATED REPORT, IN WHICH HE RECOMMENDED THAT THE CORPORATION BE PAID AN ADDITIONAL AMOUNT OF $86.13 FOR THE DRILL ROD DELIVERED BY IT, THE CONTRACTING OFFICER STATED THAT HE HAD ASCERTAINED THAT THE CURRENT PRICE OF THE DRILL ROD IS $49.50 PER CWT., F.O.B. MAXWELL AIR FORCE BASE, ALABAMA, WHICH, HE STATED, WAS THE SAME AS THE ALLEGED INTENDED BID PRICE OF THE CORPORATION.

THE RECORD LEAVES LITTLE DOUBT THAT THE CORPORATION'S BID ON THE DRILL ROD WAS ERRONEOUS, AND TO COMPEL THE CORPORATION TO FURNISH THE ITEM AT A PRICE OF $0.495 PER FOOT WOULD APPEAR TO BE INEQUITABLE.

ACCORDINGLY, SINCE THE DRILL ROD HAS BEEN DELIVERED, AN ADDITIONAL PAYMENT OF $86.13 IS AUTHORIZED TO BE MADE TO THE J. M. TULL METAL AND SUPPLY CO., INC., FOR THE QUANTITY OF 2-INCH DRILL ROD DELIVERED UNDER ITEM 4 OF PURCHASE ORDER NO. (01-600) 57-6326, AS RECOMMENDED BY THE CONTRACTING OFFICER.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING THE ADDITIONAL PAYMENT ON THE DRILL ROD.