B-131767, JUN. 20, 1957

B-131767, JUN. 20, 1957

TO THE POSTMASTER GENERAL:

REFERENCE IS MADE TO LETTER OF MAY 27, 1957, WITH ENCLOSURES, FROM THE GENERAL COUNSEL, POST OFFICE DEPARTMENT, FURNISHING INFORMATION REGARDING THE PROTEST OF INDIANAPOLIS AND SOUTHEASTERN TRAILWAYS, INC., INDIANAPOLIS, INDIANA, AGAINST THE REJECTION BY THE POST OFFICE DEPARTMENT OF ITS PROPOSAL FOR FURNISHING HIGHWAY POST OFFICE SERVICE AS DESCRIBED IN INVITATION ISSUED ON APRIL 12, 1957. BID OPENING WAS FIXED FOR APRIL 25 AND THE COMMENCEMENT OF SERVICE MAY 6.

THE RECORD SHOWS THAT THE BID PURPORTING TO BE THAT OF INDIANAPOLIS AND SOUTHEASTERN TRAILWAYS, INC., IN THE AMOUNT OF $0.30929, WAS THE LOWEST RECEIVED, BUT WAS REJECTED AS NOT BEING IN ACCEPTABLE FORM, IT APPEARING THAT THE PRESIDENT AND VICE-PRESIDENT OF THE COMPANY, WHILE SIGNING AS SURETIES, FAILED TO SIGN ON BEHALF OF THE CORPORATION AS BIDDER OR PRINCIPAL. ACCORDINGLY, ON APRIL 26, 1957, AWARD WAS MADE TO THE NEXT LOWEST BIDDER, A. F. BURBRIDGE AND C. C. MCCLENDON, ON THE BASIS OF THEIR QUOTED PRICE OF $0.31001 PER MILE.

IN THE LETTER OF MAY 27, 1957, REFERRED TO ABOVE, IT IS STATED THAT, SINCE THE BID OF TRAILWAYS WAS NOT ACCOMPANIED BY A LETTER OR OTHER WRITING SIGNED BY TRAILWAYS, THE PRESENT SITUATION IS UNLIKE THAT CONSIDERED IN OUR DECISION OF DECEMBER 14, 1937, 17 COMP. GEN. 497. IT IS STATED FURTHER THAT, IN THE ABSENCE OF A SIGNATURE OF THE PURPORTED BIDDER, YOUR DEPARTMENT DETERMINED THAT TRAILWAYS HAD NOT SUBMITTED A BID BINDING ON IT AND THAT THE PURPORTED BID WAS A NULLITY, WHEREUPON AWARD WAS MADE TO THE NEXT LOWEST BIDDER IN ACCORDANCE WITH OUR DECISION OF MARCH 11, 1955, B-123061 (34 COMP. GEN. 439).

IN OUR DECISION OF MARCH 11, 1955, TO THE ADMINISTRATOR, HOUSING AND HOME FINANCE AGENCY, IT WAS HELD THAT THE FAILURE OF A BIDDER TO SIGN A BID WHICH BORE ONLY A TYPEWRITTEN NAME BUT WAS NOT ACCOMPANIED BY ANY DOCUMENTARY OR OTHER EVIDENCE INDICATING THAT THE TYPEWRITTEN NAME HAD BEEN ADOPTED OR AUTHORIZED AS A SIGNATURE, WAS A SUBSTANTIVE DEFECT WHICH SHOULD NOT BE WAIVED AFTER OPENING OF THE BIDS. HOWEVER, AS POINTED OUT IN THAT DECISION, IT HAS ALSO BEEN HELD THAT A TYPEWRITTEN SIGNATURE MAY BE ADOPTED OR AUTHORIZED, AND THAT UNSIGNED BIDS MAY BE CONSIDERED IF ACCOMPANIED BY A LETTER, BOND OR OTHER DOCUMENT SIGNED BY THE BIDDER CLEARLY EVIDENCING HIS INTENT TO SUBMIT THE BID IN QUESTION (17 COMP. GEN. 497).

THE DECISION IN SUCH CASES IS WHETHER ACCEPTANCE OF THE BID AS SUBMITTED WILL EFFECT A CONTRACT BINDING ON THE BIDDER. IN THIS INSTANCE, WHILE THE BID ON ITS FACE DID NOT SHOW ANY CONNECTION BETWEEN THE CORPORATION AND THE INDIVIDUALS WHOSE NAMES WERE SIGNED AS SURETIES, IT APPEARS THAT THE POST OFFICE REPRESENTATIVE IN CHARGE OF THE BIDDING KNEW THAT THEY WERE IN FACT THE PRESIDENT AND VICE PRESIDENT OF THE CORPORATION. IN THESE CIRCUMSTANCES WE FEEL THAT THE TRAILWAYS' BID, SIGNED BY THE PRESIDENT AND VICE-PRESIDENT OF THE COMPANY AS SURETIES IN THE SPACE PROVIDED THEREFOR-- - WHICH SPACE IS IMMEDIATELY UNDER AND ONLY ONE LINE REMOVED FROM THE SPACE PROVIDED FOR SIGNATURE AS BIDDER AND PRINCIPAL ON WHICH THE CORPORATE NAME WAS TYPED--- COULD PROPERLY HAVE BEEN CONSIDERED AS BINDING UPON THE CORPORATION. HOWEVER, SINCE THE MATTER IS NOT ENTIRELY FREE FROM DOUBT, AND SINCE IT IS REPORTED THAT A. F. BURBRIDGE AND C. C. MCCLENDON ACTUALLY COMMENCED SERVICE ON MAY 4, 1957, AND IN ORDER TO FULFILL THE CONTRACT REQUIREMENTS WERE OBLIGED TO OBTAIN THREE VEHICLES COSTING APPROXIMATELY $23,000 EACH, AND TO MAKE OTHER FINANCIAL ARRANGEMENTS FOR COMMENCEMENT OF OPERATIONS WE DO NOT FEEL THAT THE AWARD AS MADE SHOULD BE DISTURBED.