B-149728, OCT. 12, 1962

B-149728, OCT. 12, 1962

TO DIRECTOR, DEFENSE SUPPLY AGENCY:

REFERENCE IS MADE TO LETTER OF AUGUST 15, 1962, WITH ENCLOSURES, FROM YOUR ASSISTANT COUNSEL, CONCERNING THE REQUEST OF WILLIAM STEINER AND COMPANY FOR THE CANCELLATION OF AWARD OF ITEM NO. 180 UNDER CONTRACT NO. N67004-7588, ISSUED BY THE DEFENSE SUPPLY AGENCY, ALBANY, GEORGIA.

IN RESPONSE TO INVITATION FOR BIDS NO. B-88-62-N67004, THE CONTRACTOR SUBMITTED QUOTATIONS ON SEVERAL ITEMS, INCLUDING ITEM NO. 180. ON THE LATTER ITEM--- 265 UNITS IDENTIFIED AS ROLLER JOURNAL BEARINGS--- THE BIDDER INSERTED A UNIT PRICE OF $3.89 EACH, BUT ALLEGES THAT IT WAS HIS INTENTION TO QUOTE SUCH UNIT PRICE ON ITEM NO. 181, DESCRIBED AS ANNULAR GROUND BALL BEARINGS. IN SUPPORT OF SUCH CONTENTION THE CONTRACTOR POINTS OUT THAT THE EXTENSION PRICE QUOTED FOR THE LOT, OR $2,018.91, REPRESENTS A CORRECT TOTAL PRICE FOR THE 519 UNITS UNDER ITEM NO. 181, AND IS MATERIALLY IN ERROR AS TO THE 265 UNITS UNDER ITEM NO. 180. IN ADDITION THERETO, IT IS NOTED THAT THE OTHER UNIT PRICES QUOTED ON ITEM NO. 180 RANGED FROM ?031 TO ?129, WHICH RENDERS THE SUBJECT CONTRACTOR'S OFFER OF $3.89 EACH, SUBSTANTIALLY OUT OF LINE WITH THOSE OF COMPETING BIDDERS.

IN VIEW OF ALL THE FACTS OF RECORD, WE FEEL THAT A BONA FIDE ERROR WAS MADE IN THE MANNER STATED AND THAT THE BIDDER SHOULD HAVE BEEN REQUESTED TO VERIFY ITS OFFER BEFORE CORRECTION OF THE EXTENSION PRICE AND AWARD OF A CONTRACT. WE HAVE HELD THAT THE APPLICABLE RULE THAT THE UNIT PRICE WILL GOVERN WHEN THE UNIT QUOTATION AND TOTAL PRICE ARE INCONSISTENT, IS FOR APPLICATION ONLY WHERE THE CORRECTION RESULTS IN A RELATIVELY MINOR CHANGE IN THE EXTENDED PRICE. 37 COMP. GEN. 829. ACCORDINGLY, THE AWARD AS TO ITEM NO. 180 MAY BE CANCELLED, AS ADMINISTRATIVELY RECOMMENDED.