B-155702, DEC. 22, 1964

B-155702, DEC. 22, 1964

TO THE HONORABLE LAWSON B. KNOTT, JR., ACTING ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 2, 1964, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY THE TIDEWATER OIL COMPANY, LOS ANGELES, CALIFORNIA, TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. GS-09S 13938 IS BASED.

THE FEDERAL SUPPLY SERVICE, SAN FRANCISCO, CALIFORNIA, BY INVITATION NO. SFE-FSS-61-64, REQUESTED BIDS FOR FURNISHING GASOLINE AS REQUIRED BY VARIOUS GOVERNMENT AGENCIES IN THE STATES OF CALIFORNIA, NEVADA, AND HAWAII, AS REQUIRED DURING THE PERIOD BEGINNING NOVEMBER 1, 1964, AND ENDING OCTOBER 31, 1965. IN RESPONSE TO THE INVITATION, THE TIDEWATER OIL COMPANY SUBMITTED A BID OFFERING TO DELIVER GASOLINE TO THE DESIGNATED LOCATIONS AT THE PRICES SET FORTH OPPOSITE EACH ITEM. ITEM 2 WAS FOR SUPPLY TO A LOCATION IN CALIFORNIA DESCRIBED AS "ADIN, 25 MI NW OF, LONG BELL CAMP NO. 1" AND FOR DELIVERY OF GASOLINE TO THIS LOCATION THE COMPANY QUOTED A PRICE OF $0.2355 PER GALLON. THERE WAS ANOTHER ADIN, CALIFORNIA, WHICH WAS IDENTIFIED BY ITEM 1. ITEM 3 WAS FOR DELIVERY OF GASOLINE TO ALAMEDA, CALIFORNIA. THE BID OF THE COMPANY WAS ACCEPTED AS TO ITEM 2 AND OTHER ITEMS.

BY LETTER DATED OCTOBER 5, 1964, WHICH WAS RECEIVED AFTER AWARD BUT PRIOR TO BEGINNING DATE OF PERFORMANCE, THE TIDEWATER OIL COMPANY ADVISED THE CONTRACTING OFFICER THAT IT HAD INTENDED TO BID ON ITEM 3, ALAMEDA, CALIFORNIA, INSTEAD OF ITEM 2,"ADIN, 25 MI NW OF, LONG BELL CAMP NO. 1.' THE COMPANY REQUESTED THAT THE AWARD OF ITEM 2 TO IT BE CANCELED. THE COMPANY POINTED OUT THAT ITS POSTED PRICE ON ADIN, CALIFORNIA, ITEM 1, IS $0.327 PER GALLON, AND THAT THE CORRECT POSTED PRICE, HAD IT IN FACT INTENDED TO BID FOR THE ADIN SITE LISTED UNDER ITEM 2, WOULD HAVE BEEN $0.341 PER GALLON. IT IS NOTED THAT THE COMPANY'S BID SHOWS A POSTED PRICE OF $0.293 PER GALLON FOR ITEM 2. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED ITS WORK SHEET WHICH INDICATES A BID OF $0.2355 PER GALLON FOR ITEM 3, DELIVERY TO ALAMEDA, CALIFORNIA; HOWEVER, NO QUOTATION APPEARS FOR ITEM 2, DELIVERY TO "ADIN, 25 MI NW OF, LONG BELL CAMP NO. 1.' ALSO, THE COMPANY SUBMITTED COPIES OF ITS PRINTED PRICE DIFFERENTIAL SHEETS.

THE ABSTRACT OF BIDS SHOWS THAT THE THREE OTHER BIDDERS ON ITEM 2 QUOTED PRICES RANGING FROM $0.3025 TO $0.3123 PER GALLON. IN HIS REPORT, IN WHICH HE RECOMMENDED CANCELLATION OF ITEM 2 OF THE CONTRACT, THE CONTRACTING OFFICER STATED THAT IN VIEW OF THE CONSIDERABLE DIFFERENCE OF APPROXIMATELY $0.07 PER GALLON BETWEEN THE PRICE QUOTED BY THE COMPANY AND THE PRICES QUOTED BY THE OTHER BIDDERS ON THAT ITEM, HE SHOULD HAVE BEEN ON CONSTRUCTIVE NOTICE OF AN ERROR IN THE BID OF THE COMPANY. WE ALSO ARE OF THE OPINION THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN AWARE OF THE PROBABILITY OF ERROR IN THE COMPANY'S BID OF $0.2355 PER GALLON FOR ITEM 2 AND, CONSEQUENTLY, THE BID SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING VERIFICATION.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS TO BE NO DOUBT THAT AN ERROR WAS MADE BY THE COMPANY, AS ALLEGED. IT IS REPORTED THAT THE COMPANY HAS NOT MADE ANY DELIVERIES OF GASOLINE UNDER ITEM 2 OF THE CONTRACT. ACCORDINGLY, ITEM 2 OF CONTRACT NO. GS 09S-13938 MAY BE CANCELLED WITHOUT LIABILITY TO THE TIDEWATER OIL COMPANY, AS RECOMMENDED BY YOU.