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B-129322, OCT. 26, 1956

B-129322 Oct 26, 1956
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ESQUIRE: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 24. WAS NONRESPONSIVE AND SHOULD BE REJECTED. THE BASIS OF YOUR CONTENTION IS THE INTERPRETATION YOU PLACE ON CERTAIN LANGUAGE IN RICE-STIX'S BID CONCERNING THE QUANTITY OF TROUSERS IT PROPOSED TO FURNISH. THE INVITATION CONTAINED THE FOLLOWING LANGUAGE WITH RESPECT TO THE OPTIONAL QUANTITY: "OPTION THE GOVERNMENT SHALL HAVE THE OPTION TO PURCHASE AN ADDITIONAL QUANTITY OF 232. (THIS ADDITIONAL QUANTITY WILL HEREINAFTER BE REFERRED TO AS THE . 980. * * " ANOTHER PARAGRAPH OF THE INVITATION PROVIDED AS FOLLOWS: "QUANTITIES AND BID PRICES IF BIDS FOR A PORTION OF THE TOTAL QUANTITY CALLED FOR HEREIN ARE SUBMITTED THEY WILL BE CONSIDERED AS OFFERING DELIVERY IN ACCORDANCE WITH THE DELIVERY SCHEDULE SET FORTH HEREIN UNDER THE CLAUSE ENTITLED "TIME OF DELIVERY.

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B-129322, OCT. 26, 1956

TO EDWIN J. MCDERMOTT, ESQUIRE:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 24, 1956, CONCERNING BIDS OPENED SEPTEMBER 19, 1956, UNDER INVITATION FOR BIDS NO. IFB-N140 108-57 ISSUED BY THE NAVY PURCHASING OFFICE, BROOKLYN, NEW YORK.

YOUR LETTER ASSERTS ON BEHALF OF RAVAL, INC., THE SECOND-LOW BIDDER, THAT THE LOW BID SUBMITTED BY RICE-STIX, INC., WAS NONRESPONSIVE AND SHOULD BE REJECTED. THE BASIS OF YOUR CONTENTION IS THE INTERPRETATION YOU PLACE ON CERTAIN LANGUAGE IN RICE-STIX'S BID CONCERNING THE QUANTITY OF TROUSERS IT PROPOSED TO FURNISH. THE INVITATION CALLED FOR BIDS ON TROUSERS IN SPECIFIED SIZES IN THE FOLLOWING LANGUAGE:

TABLE

"TROUSERS, MEN-S, DUNGAREE 465,980 EA.

WITH OPTION TO PURCHASE AN ADDITIONAL 232,990 EA.

MAXIMUM GROSS TOTAL 698,970 EA.'

THE INVITATION CONTAINED THE FOLLOWING LANGUAGE WITH RESPECT TO THE OPTIONAL QUANTITY:

"OPTION

THE GOVERNMENT SHALL HAVE THE OPTION TO PURCHASE AN ADDITIONAL QUANTITY OF 232,990 PAIRS OF TROUSERS MEN'S DUNGAREES. (THIS ADDITIONAL QUANTITY WILL HEREINAFTER BE REFERRED TO AS THE ,OPTIONAL AMOUNT"). INITIAL AWARD SHALL BE MADE ONLY FOR THE ORIGINAL QUANTITY OF 465,980. * * "

ANOTHER PARAGRAPH OF THE INVITATION PROVIDED AS FOLLOWS:

"QUANTITIES AND BID PRICES

IF BIDS FOR A PORTION OF THE TOTAL QUANTITY CALLED FOR HEREIN ARE SUBMITTED THEY WILL BE CONSIDERED AS OFFERING DELIVERY IN ACCORDANCE WITH THE DELIVERY SCHEDULE SET FORTH HEREIN UNDER THE CLAUSE ENTITLED "TIME OF DELIVERY," BUT FOR A PROPORTIONATE PART OF THE TOTAL QUANTITY FOR PERIODIC DELIVERY. THE BIDDER SHALL SET FORTH, IN THE SPACE PROVIDED BELOW, THE QUANTITY ON WHICH HE DESIRES TO BID.

(BIDDER FILL IN)"

IT WILL BE NOTED THAT THE PROVISION OF THE INVITATION LAST QUOTED PERMITTED BIDS ON LESS THAN THE ENTIRE QUANTITY WHICH MIGHT BE CALLED FOR BY THE GOVERNMENT AND ALSO REQUIRED BIDDERS TO STATE THE QUANTITY ON WHICH THEY WERE BIDDING. IT IS QUITE CONCEIVABLE THAT A BIDDER WISHING TO BID ON THE ENTIRE QUANTITY DESIRED MIGHT FEEL REQUIRED TO SPECIFY SOME QUANTITY AND ALSO THAT THE INSERTION OF THE FIGURE 465,980 IN THE SPACE DESIGNATED, WITHOUT MORE, WOULD BE CONSTRUED AS THE MAXIMUM QUANTITY BID UPON AND A REJECTION OF THE OPTION DESIRED BY THE GOVERNMENT. IN ITS BID RICE-STIX INSERTED THE FOLLOWING IN THE SPACE PROVIDED:

"465,980 (EA.) PLUS OPTION - ALL OR NONE"

YOU CONTEND THAT BY THIS LANGUAGE RICE-STIX OFFERED TO FURNISH THE MAXIMUM GROSS TOTAL OF 698,970 PAIRS OF TROUSERS, ALL OR NONE.

WE ARE UNABLE TO AGREE WITH YOUR INTERPRETATION OF THE LANGUAGE IN QUESTION. IF RICE-STIX INTENDED ITS BID TO MEAN THIS, IT NEED ONLY HAVE STATED THAT IT PROPOSED TO FURNISH 698,970 PAIRS, ALL OR NONE. RICE-STIX DID NOT USE THE FIGURE 698,970, AND IN VIEW OF THE POSSIBLE AMBIGUITY OF A BID OFFERING 465,980 PAIRS WITHOUT MENTION OF THE OPTION, WE BELIEVE RICE- STIX'S BID WAS AN OFFER TO FURNISH NO LESS THAN 465,980 PAIRS, PLUS SUCH ADDITIONAL QUANTITIES AS THE GOVERNMENT MIGHT ORDER UNDER THE OPTION. MAY BE NOTED THAT THE OPTION CLAUSE SPECIFICALLY STATES THAT THE INITIAL AWARD SHALL BE MADE ONLY FOR THE QUANTITY OF 465,980. FURTHERMORE, FOR YOUR INFORMATION, UPON INQUIRY BY THE PURCHASING OFFICE, RICE-STIX CONFIRMED THE FOREGOING INTERPRETATION OF ITS BID BY TELEGRAM.

FOR THESE REASONS, WE CONSIDER THE BID OF RICE-STIX TO HAVE BEEN RESPONSIVE.

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