B-126896, MAY 25, 1956

B-126896: May 25, 1956

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TO WASHINGTON-FILLMORE FOUNDRY INCORPORATED: FURTHER REFERENCE IS MADE TO YOUR LETTER OF JANUARY 11. WHEREIN THERE WAS PARTIALLY DISALLOWED YOUR CLAIM IN THE TOTAL AMOUNT OF $663.57. YOUR BID WAS ACCEPTED IN THESE AMOUNTS BY THE ISSUANCE OF PURCHASE ORDER NO. 4814-54-MD. - YOU FILED A CLAIM FOR $663.57 WHICH APPARENTLY IS PREDICATED ON YOUR INTENDED BID PRICE OF $10 AND $19 A DOZEN. IN THE SETTLEMENT THERE WAS ALLOWED ONLY $79.75. $47.98 OF THE ALLOWED AMOUNT WAS WITHHELD AND APPLIED TO LIQUIDATE THE BALANCE DUE THE GOVERNMENT AS EXCESS COSTS CHARGED AGAINST YOUR ACCOUNT UNDER PURCHASE ORDER NO. 2355-55Q. IS ACCEPTED AS A REQUEST FOR REVIEW OF THE SETTLEMENT. WAS BECAUSE THE SIZE OF THE BULKHEAD UNIONS ON THE INVITATION WAS SMALLER THAN THE SIZE CALLED FOR ON THE ACTUAL ORDER SENT TO YOU.

B-126896, MAY 25, 1956

TO WASHINGTON-FILLMORE FOUNDRY INCORPORATED:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JANUARY 11, 1956, ADDRESSED TO THE ARMY FINANCE CENTER, INDIANAPOLIS, INDIANA, RELATIVE TO SETTLEMENT DATED DECEMBER 14, 1955, WHEREIN THERE WAS PARTIALLY DISALLOWED YOUR CLAIM IN THE TOTAL AMOUNT OF $663.57, ALLEGED TO BE DUE UNDER PURCHASE ORDER NO. 4814-54-MD, DATED JUNE 30, 1954.

IT APPEARS THAT IN RESPONSE TO INVITATION NO. SC-18-107-54-52, ISSUED BY THE BALTIMORE SIGNAL DEPOT, YOU SUBMITTED A BID OFFERING TO FURNISH ITEM NO. 48, COVERING 275 FEMALE GIANT JACKS AT $10 A HUNDRED AND ITEM NO. 49, COVERING 275 MALE GIANT JACKS AT $19 A HUNDRED, OR FOR A TOTAL PRICE OF $79.75. YOUR BID WAS ACCEPTED IN THESE AMOUNTS BY THE ISSUANCE OF PURCHASE ORDER NO. 4814-54-MD, ON JUNE 30, 1954. THEREAFTER,YOU ALLEGED THAT YOU HAD QUOTED A PRICE OF $10 AND $19 DOZEN, RESPECTIVELY, FOR ITEMS NOS. 48 AND 49. UPON BEING ADVISED BY THE DEPARTMENT OF THE ARMY THAT IT HAD NO AUTHORITY TO MAKE ANY PAYMENT TO YOU IN EXCESS OF THE TOTAL PURCHASE ORDER PRICE OF $79.75-- BASED ON $10 AND $19 A HUNDRED FOR THE RESPECTIVE ITEMS--- YOU FILED A CLAIM FOR $663.57 WHICH APPARENTLY IS PREDICATED ON YOUR INTENDED BID PRICE OF $10 AND $19 A DOZEN. IN THE SETTLEMENT THERE WAS ALLOWED ONLY $79.75, THE TOTAL AMOUNT OF THE PURCHASE ORDER, BUT $47.98 OF THE ALLOWED AMOUNT WAS WITHHELD AND APPLIED TO LIQUIDATE THE BALANCE DUE THE GOVERNMENT AS EXCESS COSTS CHARGED AGAINST YOUR ACCOUNT UNDER PURCHASE ORDER NO. 2355-55Q, ISSUED BY THE COLUMBUS GENERAL DEPOT, IN CONNECTION WITH ANOTHER TRANSACTION.

YOUR LETTER OF JANUARY 11, 1956, IS ACCEPTED AS A REQUEST FOR REVIEW OF THE SETTLEMENT. IN THE LETTER YOU CONTEND THAT YOU DID NOT MAKE AN ERROR IN YOUR BID SINCE YOU QUOTED ONLY A UNIT PRICE BUT DID NOT EXTEND THE TOTAL AMOUNT. ALSO, YOU STATE THAT THE REASON YOU DID NOT MAKE DELIVERY UNDER PURCHASE ORDER NO. 2355-55Q, WAS BECAUSE THE SIZE OF THE BULKHEAD UNIONS ON THE INVITATION WAS SMALLER THAN THE SIZE CALLED FOR ON THE ACTUAL ORDER SENT TO YOU.

A REEXAMINATION OF YOUR BID REVEALS THAT YOU INSERTED A UNIT PRICE OF $10 A HUNDRED AND $19 A HUNDRED, RESPECTIVELY, FOR ITEMS NOS. 48 AND 49. WHILE THE CONTRACTING OFFICE ADMITS THAT IT EXTENDED THE RESPECTIVE UNIT PRICES TO $27.50 AND $52.25 FOR ITEMS NOS. 48 AND 49, ON THE BASIS OF THE 275 JACKS REQUIRED UNDER EACH OF THESE ITEMS, SUCH EXTENSION DID NOT CHANGE YOUR BID IN ANY MANNER BUT MERELY AMOUNTED TO THE MATHEMATICAL COMPUTATION THAT WAS NECESSARY TO ARRIVE AT A TOTAL PURCHASE ORDER PRICE FOR THE TWO ITEMS. MOREOVER, THERE IS NO EVIDENCE IN THE RECORD TO SUBSTANTIATE YOUR ALLEGATION OF ERROR OR TO SHOW HOW IT MIGHT HAVE BEEN MADE. NEITHER IS THERE EVIDENCE OF RECORD TO PROVE THAT YOU ACTUALLY INTENDED A BID OF $10 AND $19 A DOZEN FOR ITEMS NOS. 48 AND 49, INSTEAD OF $10 AND $19 A HUNDRED.

IN VIEW OF THE FOREGOING THAT PART OF THE SETTLEMENT DATED DECEMBER 14, 1955, PERTAINING TO THE PARTIAL DISALLOWANCE UNDER PURCHASE ORDER NO. 4814 -54-MD, IS SUSTAINED.

WITH RESPECT TO THE AMOUNT WITHHELD TO LIQUIDATED THE BALANCE OF EXCESS COSTS DUE UNDER PURCHASE ORDER NO. 2355-55Q, SINCE THE RECORD APPEARS TO REASONABLY ESTABLISH THAT THIS PURCHASE ORDER WAS EFFECTED THROUGH A MUTUAL MISTAKE AS TO THE EXACT SIZE OF THE BULKHEAD UNIONS REQUIRED AND SINCE THE PURCHASE ORDER WAS MODIFIED TO COVER THE LARGER SIZE UNIONS WITHOUT YOUR APPARENT CONSENT OR ANY INCREASE IN THE PRICE THEREOF, INSTRUCTIONS ARE TODAY BEING ISSUED TO THE CLAIMS DIVISION OF OUR OFFICE TO CANCEL YOUR INDEBTEDNESS OF $47.98 TO THE UNITED STATES UNDER PURCHASE ORDER NO. 2355-55Q, AND, IF OTHERWISE PROPERLY PAYABLE, TO MAKE A REMITTANCE TO YOU IN THIS AMOUNT.

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