B-146136, JUL. 14, 1961

B-146136, JUL. 14, 1961

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED JUNE 13, 1961, WITH ENCLOSURES, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY CALAIR INTERNATIONAL TO HAVE BEEN MADE IN ITS BID ON WHICH SALES CONTRACT NO. N63068S-50099 IS BASED.

IN RESPONSE TO SALES INVITATION NO. B-170-61-63068, ISSUED BY THE U.S. NAVY CONSOLIDATED SURPLUS SALES OFFICE, NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA, THE FIRM OF CALAIR INTERNATIONAL SUBMITTED A BID OF $316 EACH ON ITEM 2 OF THE SALES CATALOG, DESCRIBED AS FOLLOWS:

"1 MAST ASSEMBLY, MAIN ROTOR, ALUMINUM SHAFT FOR HTL14 AIRCRAFT. MFR. AIRCRAFT CORP. P/N 47-130-100-8.

1 TANK ASSEMBLY FUEL, PART OF POWER PLANT FUEL SYSTEM INSTALLATION FOR HELICOPTERS HTL-4, 5. 29 GAL. CAPACITY. MFR. SAME AS ABOVE, P/N 47-682- 051-1.

1 DOOR ASSEMBLY, EMERGENCY EXIT, FOR NAVY MODEL R4Y-1, 2, MODEL NO. 440 AIRCRAFT. MFR. CONVAIR DIV. OF GENERAL DYNAMICS CORP. PART NOS. 3-3310600 -31 AND 340-3310600-31.

1 CAP ASSEMBLY, WING TIP, LEFT HAND, FOR R4Y AIRCRAFT. MFR. SAME AS ABOVE. P/N (CAC) 340-1410914-81.

1 WINDSHIELD, CO-PILOTS, FOR MODEL R4Y-1 AIRCRAFT, P/N N340-3110301 8. MFR. SAME AS ABOVE.

1 WINDSHIELD, PILOTS, FOR MODEL R4Y AIRCRAFT, P/N (CAC) 3110301-7. MFR. SAME AS ABOVE.

ACQUISITION: $2,120.00. UNUSED - APPARENTLY EXCELLENT CONDITION. EST. WT. 208 LBS. CU 27. IN BOXES AND CARTONS. PACKED FOR SHIPMENT.

QUANTITY - 6 EACH"

THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEM 2 ON MAY 4, 1961.

IN A LETTER DATED MAY 5, 1961, CALAIR INTERNATIONAL ADVISED THE CONTRACTING OFFICER THAT IT HAD MADE AN ERROR IN ITS BID IN THAT IT HAD INTENDED THE PRICE OF $316 ON ITEM 2 AS A LOT PRICE RATHER THAN A UNIT PRICE. THE COMPANY STATED THAT A COMPARISON OF ITS BID PRICE FOR ITEM 2 WITH THE PRICES QUOTED BY THE OTHER BIDDERS ON THAT ITEM WOULD SHOW THAT ITS BID PRICE WAS ERRONEOUS. THE COMPANY REQUESTED THAT ITS BID PRICE OF $316 BE CONSIDERED AS A LOT PRICE FOR ITEM 2. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED ITS WORKSHEET, WHICH APPEARS TO BE A PAGE FROM THE INVITATION ON WHICH ITEM 2 WAS LISTED. THE WORKSHEET SHOWS ANNOTATIONS AT THE DESCRIPTION OF ITEM 2, "N/G SCRAP-NO GOOD" FOR THE FIRST FOUR UNITS COMPRISING ITEM 2. THE FIFTH AND SIXTH UNITS ARE CIRCLED WITH ARROWS POINTING TO THE ANNOTATION "FACTORY NET ABOUT $1100 TOTAL POTENTIAL RETURN NEXT 12 MO. 900.00 TOTAL.' IN THE SPACE PROVIDED FOR THE UNIT PRICE BID THE AMOUNT OF ,316.00" APPEARS. EIGHT OTHER BIDS WHOSE TOTAL PRICES RANGED FROM $465 TO $1.56 WERE RECEIVED ON ITEM 2 AND THE ORIGINAL ACQUISITION COST OF THE EQUIPMENT COVERED BY THAT ITEM WAS $2,120. SINCE THE TOTAL PRICE OF $1,896 QUOTED BY CALAIR INTERNATIONAL FOR ITEM 2 REPRESENTS A PRICE WHICH IS OVER 88 PERCENT OF THE ACQUISITION COST OF THE EQUIPMENT, IT REASONABLY MAY BE CONCLUDED THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN ON NOTICE OF THE PROBABILITY OF AN ERROR IN THE BID OF THE COMPANY AND SHOULD HAVE REQUESTED THE COMPANY TO VERIFY ITS BID PRIOR TO AWARD.

IN VIEW OF THE FOREGOING, THE CONTRACT WITH CALAIR INTERNATIONAL MAY BE CANCELED WITHOUT LIABILITY.