B-134636, MAY 16, 1958

B-134636: May 16, 1958

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TO INTERNATIONAL HARVESTER COMPANY: REFERENCE IS MADE TO LETTER DATED MAY 7. IN WHICH IT WAS CONCLUDED THAT YOU COULD NOT BE PAID MORE THAN THE AMOUNT OF THE NEXT LOW BID RECEIVED IN RESPONSE TO INVITATION NO. AS WE HAVE INDICATED TO YOU IN OUR DECISION OF APRIL 17. IT IS IMMATERIAL THAT THE CONTRACTING OFFICER ISSUED A CONTRACT TO YOU IN THE AMOUNT OF $1. ALTHOUGH HE THOUGHT THAT WAS YOUR INTENDED PRICE. HE WAS INCORRECT AS YOU DID NOT INTEND THAT AS YOUR PRICE. THERE WAS NO MEETING OF THE MINDS ON THE SUBJECT OF PRICE AND IN SIMILAR CIRCUMSTANCES THE COURTS AND OUR OFFICE HAVE DISREGARDED THE PRICE STATED IN THE ISSUED CONTRACT AND HAVE LIMITED RELIEF TO THE NEXT LOW BID.

B-134636, MAY 16, 1958

TO INTERNATIONAL HARVESTER COMPANY:

REFERENCE IS MADE TO LETTER DATED MAY 7, 1958, FROM YOUR CREDIT AND COLLECTION DEPARTMENT, REQUESTING FURTHER CONSIDERATION OF OUR DECISION TO YOU DATED APRIL 17, 1958, WHICH SUSTAINED OUR DECISION TO THE SECRETARY OF THE ARMY DATED JANUARY 10, 1958, IN WHICH IT WAS CONCLUDED THAT YOU COULD NOT BE PAID MORE THAN THE AMOUNT OF THE NEXT LOW BID RECEIVED IN RESPONSE TO INVITATION NO. DA-15-056-57-254.

AS WE HAVE INDICATED TO YOU IN OUR DECISION OF APRIL 17, 1958, IT IS IMMATERIAL THAT THE CONTRACTING OFFICER ISSUED A CONTRACT TO YOU IN THE AMOUNT OF $1,966.44 LESS A PROMPT PAYMENT DISCOUNT OF "21 PERCENT, 30 CALENDAR DAYS.' ALTHOUGH HE THOUGHT THAT WAS YOUR INTENDED PRICE, HE WAS INCORRECT AS YOU DID NOT INTEND THAT AS YOUR PRICE. AS A RESULT, THERE WAS NO MEETING OF THE MINDS ON THE SUBJECT OF PRICE AND IN SIMILAR CIRCUMSTANCES THE COURTS AND OUR OFFICE HAVE DISREGARDED THE PRICE STATED IN THE ISSUED CONTRACT AND HAVE LIMITED RELIEF TO THE NEXT LOW BID.

FURTHERMORE, UNDER 10 U.S.C. 2305 (B), THE CONTRACTING OFFICE HAS NO AUTHORITY TO BIND THE GOVERNMENT TO OTHER THAN THE LOWEST CORRECT BID PRICE RECEIVED.

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