B-145726, MAY 12, 1961

B-145726, MAY 12, 1961

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED APRIL 27, 1961, WITH ENCLOSURES, FROM THE CHIEF, CONTRACTS DIVISION, OFFICE OF THE DEPUTY CHIEF OF STAFF FOR LOGISTICS, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY PARK RIDGE CLEANERS AND DYERS, INC., TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. DA-11-074-AV 2705 IS BASED.

THE CENTRAL PROCUREMENT OFFICE, FORT SHERIDAN, ILLINOIS, BY INVITATION NO. AV-11-074-60-59, REQUESTED BIDS FOR FURNISHING DRY CLEANING SERVICES DURING THE PERIOD JULY 1, 1960, TO JUNE 30, 1961. ITEM 1 COVERS ROUGH DRY CLEANING, ITEM 2 COVERS FINISHED DRY CLEANING, AND ITEM 3 COVERS RUG CLEANING AND SIZING SERVICES. IN RESPONSE PARK RIDGE CLEANERS AND DYERS, INC., SUBMITTED A BID DATED JUNE 20, 1960, WHEREIN IT OFFERED TO FURNISH, AMONG OTHERS, RUG CLEANING SERVICES AT A PRICE OF $0.05 PER SQUARE YARD. IT IS REPORTED THAT ON JUNE 25, 1960, MULTIPLE AWARDS WERE MADE UNDER THE INVITATION, ONE OF WHICH WAS TO PARK RIDGE CLEANERS AND DYERS, INC.

IN HIS REPORT OF MARCH 17, 1961, IN WHICH HE RECOMMENDED THAT THE CORPORATION BE PAID FOR THE RUG CLEANING SERVICES FURNISHED IN AN AMOUNT NOT IN EXCESS OF THE NEXT LOWEST BID RECEIVED ON ITEM 3, THE CONTRACTING OFFICER STATED THAT AFTER PERFORMING RUG CLEANING SERVICES, THE CORPORATION SUBMITTED INVOICES WHICH SHOW A PRICE OF $0.50 PER SQUARE YARD FOR ITEM 3 AND THAT THE INVOICES WERE RETURNED TO THE CORPORATION UPON ITS REQUEST WHEN IT WAS POINTED OUT THAT THE INVOICES WERE IN CONFLICT WITH THE CONTRACT PRICE OF $0.05 PER SQUARE YARD.

BY LETTER DATED MARCH 8, 1961, PARK RIDGE CLEANERS AND DYERS, INC., ADVISED THAT A TYPOGRAPHICAL ERROR HAD BEEN MADE IN ITS BID IN THAT THE PRICE OF THE RUG CLEANING SERVICES COVERED BY ITEM 3 SHOULD HAVE BEEN SHOWN AS $0.50 INSTEAD OF $0.05 PER SQUARE YARD. THE CORPORATION REQUESTED THAT THE CONTRACT PRICE OF ITEM 3 BE CHANGED TO $0.35 PER SQUARE YARD, WHICH PRICE THE CORPORATION STATED DID NOT INCLUDE ANY PROFIT. SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED ITS WORKSHEET WHICH SHOWS A BID PRICE OF $0.50 PER SQUARE YARD.

THE ABSTRACT OF BIDS SHOWS THAT THE THREE OTHER BIDS ON ITEM 3 WERE IN THE AMOUNTS OF $0.25, $0.87, AND $1 PER SQUARE YARD. IN HIS REPORT THE CONTRACTING OFFICER STATED THAT IN VIEW OF THE DIFFERENCE BETWEEN THE BID PRICE OF PARK RIDGE CLEANERS AND DYERS, INC., ON ITEM 3 AND THE BID PRICE QUOTED BY THE NEXT LOWEST BIDDER ON THAT ITEM, HE SHOULD HAVE BEEN ON CONSTRUCTIVE NOTICE OF AN ERROR IN THE BID OF THE CORPORATION. WE ALSO ARE OF THE OPINION THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN AWARE OF THE PROBABILITY OF ERROR IN THE CORPORATION'S BID OF $0.05 PER SQUARE YARD FOR ITEM 3 AND, CONSEQUENTLY, THE BID SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE CORPORATION TO VERIFY ITS BID.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS LITTLE ROOM FOR DOUBT THAT PARK RIDGE CLEANERS AND DYERS, INC., MADE A BONA FIDE ERROR IN ITS BID, AS ALLEGED. IT IS REPORTED THAT PARK RIDGE CLEANERS AND DYERS, INC., HAS RENDERED RUG CLEANING SERVICES UNDER ITEM 3 OF THE CONTRACT. ACCORDINGLY, PARK RIDGE CLEANERS AND DYERS, INC., MAY BE PAID FOR THE RUG CLEANING SERVICES RENDERED UNDER ITEM 3 OF THE CONTRACT IN THE AMOUNT OF THE NEXT LOWEST CORRECT BID ON THAT ITEM, AS ADMINISTRATIVELY RECOMMENDED, AND THE CORPORATION MAY BE RELIEVED OF THE OBLIGATION OF FURNISHING RUG CLEANING SERVICES DURING THE BALANCE OF THE CONTRACT PERIOD.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHERS COVERING SUCH PAYMENTS.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT, ARE RETURNED.