B-145928, JUN. 14, 1961

B-145928, JUN. 14, 1961

TO MR. VICTOR A. SHARRETT, CONTRACTING OFFICER, CONSOLIDATED SURPLUS SALES OFFICE, DEPARTMENT OF THE ARMY:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 30, 1961, REQUESTING A DECISION AS TO ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY NAPCO INDUSTRIES, INC., SEVENTH STREET-NORTH LYNDALE, MINNEAPOLIS,MINNESOTA, TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. 28-013-S-61-35 ISSUED BY YOUR OFFICE FEBRUARY 7, 1961.

THE INVITATION REQUESTED BIDS FOR THE PURCHASE OF NUMEROUS ITEMS OF SURPLUS PROPERTY. ITEMS NOS. 131 AND 133 COVERED PROPERTY DESCRIBED AS FOLLOWS:

"131. RINGS: LOCKING WHEEL RIM (USE W/WHEEL 5600407 P/N GM2183973 F/TRUCK 2 1/2 TON 6 BY 6 GMC FED S/N 2530-734-2122 G508 APPARENTLY 1600 CUBE FEET, APPROX. 215 WOODEN BOXES--- 10 STRAPPED PALLETS--- 20 LOOSE TOTAL WEIGHT: 48,000 LBS. UNUSED--- (GOOD CONDITION) TOTAL ACQUISITION COST: $22,862.00 LOCATION--- SALVAGE YARD BIDDERS MAY BID IN INCREMENTS OF 100 EA.'

"133. HUB ASSY: F/1 1/2 TON 2 WHEEL TRAILER, MFG. P/N BUDD 68051, FED S/N 25307411084 APPR. CUBE 255 FEET. PACKED APPROX. 25 EA. WOODEN BOXES--- 6 EA. PALLETS STRAPPED TOTAL WEIGHT 7,500 LBS. APPARENTLY UNUSED--- (GOOD CONDITION) TOTAL ACQUISITION COST: $2,847.10 LOCATION--- SALVAGE YARD"

IN RESPONSE TO THE INVITATION, NAPCO INDUSTRIES, INC., SUBMITTED A BID ON SEVERAL ITEMS, INCLUDING A BID OF $1.26 EACH AND A TOTAL PRICE OF $89.46 ON ITEM NO. 131. ON MARCH 1, 1961, AWARD WAS MADE TO NAPCO INDUSTRIES, INC., ON EIGHT ITEMS, INCLUDING ITEM NO. 131.

IN YOUR LETTER OF MARCH 30, 1961, IT IS REPORTED THAT ON OR ABOUT MARCH 10, 1961, THE CONTRACTOR STATED BY TELEPHONE THAT AN ERROR HAD BEEN MADE IN ITS BID. IN ITS LETTER OF MARCH 17, 1961, THE CONTRACTOR ENCLOSED PAYMENT FOR ALL ITEMS AWARDED IT EXCEPTING ITEM NO. 131, STATING THAT IT HAD INTENDED TO BID ON ITEM NO. 133 INSTEAD OF ITEM NO. 131 BUT THAT AN ERROR WAS MADE IN TYPING THE BID, AND REQUESTED THAT THE AWARD BE CANCELED AS TO ITEM NO. 131. WITH THE LETTER WAS ENCLOSED AN AFFIDAVIT BY THREE OFFICIALS OF THE CONTRACTOR STATING THAT THERE WAS NO INTENTION OF BIDDING ON ITEM NO. 131 BUT THAT AN ERROR WAS MADE IN TYPING THE BID; ALSO A PHOTOSTATIC COPY OF THE CONTRACTOR'S ORIGINAL WORK SHEETS SUPPORTING THE ALLEGATION THAT THE BID WAS INTENDED TO BE SUBMITTED ON ITEM NO. 133 INSTEAD OF ITEM NO. 131. IN THE LETTER, ATTENTION WAS INVITED TO THE FACT THAT THE EXTENDED BID PRICE FOR ITEM NO. 131 ($89.46) WAS INCONSISTENT WITH THE UNIT PRICE ($1.26), CONSIDERING THE NUMBER OF UNITS ADVERTISED IN THAT ITEM (1,610); AND THAT THE EXTENDED BID PRICE ON ITEM NO. 131 WOULD HAVE BEEN CORRECT FOR ITEM NO. 133 (71 UNITS AT $1.26 EACH).

IN VIEW OF THE FACTS OF THIS MATTER AS REPORTED AND SHOWN BY THE FILE, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT NAPCO INDUSTRIES, INC., MADE AN ERROR IN ITS BID ON ITEM NO. 131 AS ALLEGED AND EXPLAINED BY IT, INTENDING TO BID ON ITEM NO. 133 INSTEAD OF ITEM NO. 131. ALSO, BECAUSE OF THE OBVIOUS ERROR IN THE EXTENDED BID PRICE ON ITEM NO. 131, IT IS CONCLUDED THAT VERIFICATION OF THE BID SHOULD HAVE BEEN REQUESTED BEFORE MAKING THE AWARD.

FOR THE REASONS ABOVE SET FORTH, THE AWARD AS TO ITEM NO. 131 SHOULD BE CANCELED WITHOUT LIABILITY ON THE PART OF NAPCO INDUSTRIES, INC. ..END :