B-130966, MAR. 11, 1957

B-130966, MAR. 11, 1957

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 4, 1957, RELATIVE TO THE BID SUBMITTED BY CHAMPION AIRQUIPMENT, INC., IN RESPONSE TO INVITATION NO. JD- IFB-383-1477-57, ISSUED BY THE AVIATION SUPPLY OFFICE, PHILADELPHIA, PENNSYLVANIA. A DECISION IS REQUESTED AS TO WHETHER THE BID MAY BE DISREGARDED.

THE INVITATION REQUESTED BIDS--- TO BE OPENED ON JANUARY 11, 1957--- FOR FURNISHING 10 TYPE HTL HANDLING TRUCKS CONFORMING TO THE REQUIREMENTS OF NAVAL AIRCRAFT FACTORY DRAWING 603428, REVISION 10 DATED JUNE 21, 1954, AS AMENDED. IN RESPONSE TO THE INVITATION, CHAMPION AIRQUIPMENT, INC., SUBMITTED A BID DATED JANUARY 7, 1957, OFFERING TO FURNISH THE TRUCKS FOR A PRICE OF $2,650 PER TRUCK. THE TWO OTHER BIDS RECEIVED QUOTED PRICES OF $7,793 AND $8,269 PER TRUCK.

IN VIEW OF THE WIDE DISPARITY IN PRICES BETWEEN THE LOW BID AND THE TWO OTHERS, BY TELEGRAM DATED JANUARY 15, 1957, THE LOW BIDDER WAS REQUESTED TO CONFIRM THAT ITS BID PRICE COVERED EQUIPMENT IN STRICT ACCORDANCE WITH THE SPECIFICATION REQUIREMENTS SET FORTH IN THE INVITATION. THE BIDDER ADVISED BY WIRE OF JANUARY 16 THAT THE BID WAS IN ERROR AND THAT A LETTER WAS TO FOLLOW.

BY LETTER DATED JANUARY 18, 1957, THE BIDDER ADVISED THAT IT HAD SUBMITTED A "COMPLIMENTARY ID" AFTER SCANNING THE DRAWING ONLY AND WITHOUT PREPARING ANY ESTIMATES IN ARRIVING AT THE BID PRICE. THE BIDDER STATED THAT THIS ACTION WAS TAKEN DUE TO INSUFFICIENT ESTIMATING TIME, A LARGE BACKLOG OF WORK ON HAND AND AS A MEANS OF PRECLUDING THE ELIMINATION OF ITS NAME AS A FUTURE SOURCE OF PROCUREMENT FOR THE ITEM. IT WAS ALSO STATED THAT FROM THE SUPERFICIAL EXAMINATION OF THE DRAWINGS IT WAS BELIEVED THAT THE LOW BID WOULD BE APPROXIMATELY $2,000 EACH AND, THEREFORE, IT QUOTED $2,650 SOLELY AS A "COMPLIMENTARY BID.' IN VIEW THEREOF THE BIDDER REQUESTED PERMISSION TO WITHDRAW THE BID.

IT IS REPORTED THAT THE AVIATION SUPPLY OFFICE HAD ONE PREVIOUS PROCUREMENT OF THIS ITEM WITH THE BIDDER, WHO SUBMITTED THE SECOND LOW BID ON THIS INVITATION, UNDER A CONTRACT DATED JUNE 29, 1956, FOR SEVEN OF THE SAME TYPE OF TRUCKS AT A UNIT PRICE OF $7,840, AND THAT A REVIEW OF THE REQUIREMENTS OF THIS ITEM SUPPORTS A PRICE IN EXCESS OF $7,000 EACH.

IN THE CIRCUMSTANCES, THE PRICE QUOTED BY CHAMPION AIRQUIPMENT, INC., OBVIOUSLY IS NOT REALISTIC, AND COULD NOT BE ACCEPTED IN GOOD FAITH SO AS TO CONSTITUTE A VALID AND BINDING CONTRACT. ACCORDINGLY, THE BID SHOULD BE DISREGARDED.

THE PAPERS, WITH THE EXCEPTION OF A COPY OF THE STATEMENT OF FACT AND RECOMMENDATION OF THE CONTRACTING OFFICER AND THE LETTER OF CHAMPION AIRQUIPMENT, INC., DATED JANUARY 18, 1957, ARE RETURNED.