B-135288, MAR. 6, 1958

TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED FEBRUARY 14. QUOTATIONS WERE RECEIVED FROM SEVEN FIRMS. THE BELL TRANSFER AND STORAGE COMPANY WAS REQUESTED TO VERIFY ITS BID. THE BID AS SUBMITTED WAS VERIFIED BY THE CONTRACTOR. WHEREUPON AWARD WAS MADE ON SEPTEMBER 30. THE CONTRACTOR ORALLY ADVISED THE CONTRACTING OFFICER THAT ITS FIRM WAS LOSING MONEY ON THE CONTRACT BY REASON OF THE PERFORMANCE OF CERTAIN SERVICES NOT REQUIRED BY THE TERMS OF THE AGREEMENT. THE BASIC QUESTION INVOLVED IN CASES SUCH AS THIS IS WHETHER A VALID AND BINDING CONTRACT WAS CONSUMMATED BY THE ACCEPTANCE OF THE BID. 36 COMP. AN EXAMINATION OF THE ABSTRACT OF BIDS RECEIVED DOES NOT INDICATE THAT THE PRICE DIFFERENCES WERE SO GREAT THAT THE LOW BID PRICE NECESSARILY MUST HAVE BEEN ERRONEOUS.