B-145710, MAY 10, 1961

B-145710, MAY 10, 1961

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED APRIL 21, 1961, WITH ENCLOSURES, FILE R11.4, FROM THE ACTING ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING OUR DECISION AS TO WHETHER THERE PROPERLY MAY BE DENIED THE RELIEF SOUGHT BY ALLAN BASS, NAMELY, CANCELLATION OF SALE CONTRACT NO. N63069-1590, DATED MARCH 22, 1961, IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID UPON WHICH THE CONTRACT WAS AWARDED.

ON THE RECORD BEFORE US THERE IS NO BASIS FOR CHARGING THE GOVERNMENT CONTRACTING OFFICER WITH CONSTRUCTIVE NOTICE OF THE PROBABILITY OF AN ERROR IN THE HIGH BID OF $59 WHICH ALLAN BASS QUOTED FOR THE CAMSHAFT SECTION COVERED BY ITEM NO. 17 OF PHILADELPHIA NAVAL SHIPYARD INVITATION NO. B-105-61-63069. WHILE THERE IS A SUBSTANTIAL DISPARITY BETWEEN MR. BASS' BID OF $59 FOR ITEM NO. 17 AND THE FOUR OTHER BIDS OF $2.03, $1.12, $1.01 AND $1, WHICH WERE RECEIVED FOR THAT ITEM, SUCH A DIFFERENTIAL, WITHOUT MORE, DOES NOT PROVIDE A BASIS FOR ESTABLISHING NOTICE OF PROBABLE ERROR IN VIEW OF THE WIDE VARIANCE IN BIDS GENERALLY RECEIVED IN SALES OF GOVERNMENT SURPLUS PROPERTY. MOREOVER, WHEN CONSIDERING THAT THE TOTAL ACQUISITION COST FOR THE CAMSHAFT SECTION, WHICH IS DESCRIBED AS "UNUSED, GOOD" IS $4,668, THE RATE OF RETURN, AS REFLECTED BY THE HIGH BID OF $59 THEREFOR, MAY NOT BE HELD TO BE EXCESSIVE. UNDER THE CIRCUMSTANCES, WE MUST CONCLUDE THAT THE CONTRACTING OFFICER'S ACCEPTANCE OF THE BID CONSUMMATED A VALID AND BINDING CONTRACT WHICH FIXED THE RIGHTS AND LIABILITIES OF THE PARTIES.

ACCORDINGLY, WE FIND NO LEGAL BASIS FOR GRANTING ANY RELIEF IN THE MATTER.

THE PAPERS, WITH THE EXCEPTION OF THE MEMORANDUM DATED APRIL 4, 1961, FROM THE OFFICER IN CHARGE, AND THE COPY OF THE ABSTRACT OF BIDS, ARE RETURNED HEREWITH.