B-105224, FEB 21, 1952

B-105224, FEB 21, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED DECEMBER 13, 1951, FILE REFERENCE AFAFN-1 167 (MICROMATIC HONE CORP.), FORWARDING THE REPORT REQUESTED BY LETTER DATED SEPTEMBER 10, 1951, WITH RESPECT TO AN ERROR ALLEGED BY MICROMATIC HONE CORPORATION, 8100 SCHOOL CRAFT AVENUE, DETROIT 4, MICHIGAN, IN ITS LETTER OF JULY 31, 1951, TO HAVE BEEN MADE IN ITS BID UPON WHICH CONTRACT NO. AF 41(142)-496, DATED APRIL 24, 1951, WAS BASED.

SAN ANTONIO AIR MATERIEL AREA, KELLY AIR FORCE BASE, TEXAS, REQUESTED BIDS FOR FURNISHING VARIOUS ITEMS OF EQUIPMENT. IN RESPONSE TO THE INVITATION, MICROMATIC HONE CORPORATION SUBMITTED A BID DATED MARCH 9, 1951, AND SET FORTH IN AN ATTACHED SCHEDULE THE EQUIPMENT IT PROPOSED TO FURNISH UNDER THE VARIOUS ITEMS. THE EQUIPMENT LISTED ON THE SCHEDULE FOR THE VARIOUS ITEMS IS BROKEN DOWN TO SHOW THE PARTS MAKING UP THE PARTICULAR ITEM, AND THE UNIT PRICES FOR THE VARIOUS PARTS IS SHOWN ON THE SCHEDULE. ON THE FACE SHEET OF THE BID THERE WAS QUOTED, FOR ALL ITEMS, A TOTAL PRICE OF $6,316.85 F.O.B. DETROIT, MICHIGAN.

ITEM 4 OF THE INVITATION IS AS FOLLOWS:

UNIT

ITEM NO. SUPPLIES OR SERVICES QUANTITY UNIT PRICE AMOUNT

4. #31057-4 SLEEVE ADJ. BARNES OR EQUAL

(8100-NL19830) 6 EA.

THE CORPORATION SET FORTH ITEM 4 IN THE SCHEDULE, ACCOMPANYING ITS BID, AS FOLLOWS:

ITEM NO. UNIT TOTAL

4. 31057-4 (8100-NL 19830)

(6) #31057-6 SLEEVES

(12) #5223-60 SNAP RINGS $3.66 $43.92

THE BID OF THE CORPORATION AS TO ALL ITEMS WAS ACCEPTED ON APRIL 4, 1951, CONSUMMATING CONTRACT NO. 41(142-496), PURCHASE ORDER NO. 51 18033. THE TOTAL PRICE IS SHOWN ON THE PURCHASE ORDER AS $6,176.63, ONLY, WHICH AMOUNT IS BASED UPON THE QUANTITIES AND UNIT PRICES SET FORTH IN THE SCHEDULE ATTACHED TO THE CORPORATION'S BID, ITEM 4 BEING SHOWN THEREON AS FOLLOWS:

UNIT

ITEM NO. SUPPLIES OR SERVICES QUANTITY UNIT PRICE AMOUNT

4. #31057-4 SLEEVE ADJ. CONSISTING OF:

#31057-6 6EA SLEEVES W/2 EA #5223-60 SNAP RINGS (8100-NL 19830) 6 EA. $3.66 $21.96

BY TELEGRAM RECEIVED ON MAY 12 AND LETTER DATED MAY 24, 1950, THE CORPORATION ADVISED THE CONTRACTING OFFICER THAT THE TOTAL PRICE SHOWN ON THE PURCHASE ORDER WAS NOT AS INTENDED. THE LETTER OF MAY 24, IS IN PART, AS FOLLOWS:

"TOTAL $6,316.85 CORRECT FOR ITEMS REQUESTED IN BID. THIS TOTAL ACTUALLY INCLUDED SIX #31057-6 SLEEVES AND TWELVE #5223-60 SNAP RINGS, BUT ONLY INDICATED UNIT PRICE OF RINGS. THE PRICE OF SLEEVES WAS ESTABLISHED AS $19.71 BUT IN ERROR WAS NOT INDICATED IN THE BID. YOUR TOTAL OF $6,176.63 INCLUDES SIX RINGS OF ITEM 4, EACH PRICED AT $3.66 BUT NO SLEEVES PRICED AT $19.71, NOR THE ADDED SIX RINGS (TOTAL 12 REQUIRED) WE INDICATED IN OUR BID."

ERROR IS OBVIOUS ON THE FACE OF THE BID OF THE CORPORATION WITH RESPECT TO ITEM 4, AND IT DOES NOT APPEAR THAT THE PURCHASE ORDER ISSUED WAS IN ACCORDANCE WITH THE BID. FURTHERMORE, IT APPEARS CLEAR THAT THE COMPANY FAILED TO QUOTE IN ITS BID A UNIT PRICE OF $19.71 FOR THE SIX SLEEVES, AND THAT THE UNIT PRICE OF $3.66 WAS INTENDED FOR THE 12 RINGS. THE TOTAL AMOUNT OF THE COMPANY'S BID OF $6,316.85 WAS SUBMITTED ON THAT BASIS.

ACCORDINGLY, PAYMENT FOR THE EQUIPMENT FURNISHED UNDER ITEM 4 IS AUTHORIZED TO BE MADE ON THE BASIS OF $19.71 EACH FOR THE SLEEVES, AND $3.66 EACH FOR THE RINGS WHICH WILL MAKE NO CHANGE IN THE TOTAL PRICE SPECIFIED IN THE BID.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING PAYMENT UNDER AUTHORITY HEREOF.