B-144315, NOV. 8, 1960

B-144315, NOV. 8, 1960

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 21, 1960, WITH ENCLOSURES, FORWARDED IN BEHALF OF THE ASSISTANT SECRETARY OF THE ARMY FOR LOGISTICS, BY THE OFFICE OF THE DEPUTY CHIEF OF STAFF FOR LOGISTICS, REQUESTING OUR DECISION AS TO WHETHER CONTRACT NO. O.I. 16575-OC MAY BE CANCELED IN VIEW OF THE DISCLOSURE AFTER AWARD OF AN ERROR IN THE RELATED BID.

THE ALASKAN COPPER AND BRASS COMPANY SUBMITTED THE LOW BID OF $0.584 EACH FOR THE 1,400 PIPE TEE FITTINGS SPECIFIED UNDER ITEM NO. 7 OF THE SHARPE GENERAL DEPOT'S INVITATION NO. QM-04-468-60-297, DATED MAY 20, 1960, AS AGAINST THE SIX OTHER BIDS RECEIVED WHICH RANGED FROM $1.285 TO $1.50 EACH. HENCE, IT MUST BE CONCLUDED THAT THE LOW BID IS COMPLETELY OUT OF LINE WITH THE OTHER BIDS RECEIVED. IN VIEW OF THIS, WE CONCUR IN THE OPINION OF THE CONTRACTING OFFICER THAT SUCH A DISPARITY IN THE BID PRICES SHOULD HAVE BEEN CONSTRUCTIVE NOTICE OF THE PROBABILITY OF AN ERROR IN THE BID AND, THEREFORE, THE ALASKAN COPPER AND BRASS COMPANY SHOULD HAVE BEEN AFFORDED THE USUAL OPPORTUNITY TO VERIFY ITS BID PRIOR TO AWARD. MOREOVER, THE AFFIDAVIT OF A REPRESENTATIVE OF THE ALASKAN COPPER AND BRASS COMPANY WHO PREPARED THE BID, THE COPY OF THE COMPANY'S PRICE LIST AND THE WORKSHEET UPON WHICH ITS BID WAS COMPUTED CLEARLY SUPPORT THE COMPANY'S STATEMENT THAT THE ERROR RESULTED WHEN THE LIST PRICE FOR 3/4- INCH PIPE TEES WAS USED INSTEAD OF THE PRICE FOR THE 1 1/2-INCH TEES SPECIFIED.

ACCORDINGLY, CONTRACT NO. O.I. 16575-OC MAY BE CANCELED WITHOUT OBLIGATION TO THE ALASKAN COPPER AND BRASS COMPANY.

THE PAPERS, WITH THE EXCEPTION OF THE REPORT AND RECOMMENDATION OF THE CONTRACTING OFFICER, THE AFFIDAVIT, WORKSHEET AND PRICE LIST, ARE RETURNED HEREWITH.