B-124254, JUN. 29, 1955

B-124254, JUN. 29, 1955

TO MR. BARTON F. BETTS, CONTRACTING OFFICER, NATIONAL BUREAU OF STANDARDS:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JUNE 7, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN REGARDING AN ERROR COBOCO, INC., DENVER, COLORADO, ALLEGES IT MADE IN ITS BID OPENED ON JUNE 1, 1955.

BY INVITATION NO. 184-55, BIDS WERE REQUESTED FOR FURNISHING TWO FIELD LABORATORY TRAILERS, F.O.B. BOULDER, COLORADO, OR F.O.B. WASHINGTON, D.C. PARAGRAPH 10 (B) OF THE GENERAL PROVISIONS OF STANDARD FORM 32, MADE A PART OF THE INVITATION, SPECIFIES THAT EXCEPT AS MIGHT BE OTHERWISE PROVIDED IN THE CONTRACT, THE CONTRACT PRICE INCLUDES ALL APPLICABLE FEDERAL TAXES IN EFFECT ON THE CONTRACT DATE.

IN RESPONSE TO THE INVITATION, COBOCO, INC., SUBMITTED A BID OFFERING TO FURNISH THE TRAILERS AT UNIT PRICES OF $12,727.95 EACH F.O.B. BOULDER, COLORADO, AND $13,737.95 EACH F.O.B. WASHINGTON, D.C. THE ONLY OTHER BIDDER ON THE TRAILERS SPECIFIED A PRICE OF $19,305 EACH F.O.B. BOULDER, COLORADO.

YOU STATE THAT APPROXIMATELY 10 MINUTES AFTER THE BID OPENING A REPRESENTATIVE OF COBOCO, INC., ORALLY ADVISED YOU THAT AN ERROR HAD BEEN MADE IN THE CORPORATION'S BID IN THAT IT FAILED TO INCLUDE IN ITS BID PRICE FOR THE TRAILERS AN AMOUNT TO COVER THE APPLICABLE EIGHT PERCENT FEDERAL EXCISE TAX. BY LETTER DATED JUNE 2, 1955, THE CORPORATION CONFIRMED THE VERBAL ALLEGATION OF ERROR AND REQUESTED THAT THE PRICE OF THE TRAILERS BE INCREASED SUFFICIENTLY TO COVER THE ALLEGED OMITTED EXCISE TAX. YOU STATE FURTHER THAT SINCE IT HAS BEEN DETERMINED TO PURCHASE THE TWO TRAILERS ON A BASIS OF DELIVERY TO BOULDER, COLORADO, THE AMOUNT OF THE ALLEGED ERROR COMES TO $2,036.47. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED ITS WORKSHEETS WHICH SHOW VARIOUS ITEMS OF COST TOTALING $12,727.95, ITS UNIT PRICE FOR DELIVERY OF THE TRAILERS TO BOULDER, COLORADO. NONE OF THE VARIOUS ITEMS OF COST MAKING UP THE BID PRICE APPEAR TO COVER THE ITEM OF THE APPLICABLE FEDERAL EXCISE TAX.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT THE CORPORATION FAILED TO INCLUDE AN AMOUNT IN ITS BID PRICE TO COVER THE APPLICABLE EXCISE TAX. ACCORDINGLY, THE BID OF COBOCO, INC., MAY BE CORRECTED TO REFLECT THE OMITTED FEDERAL EXCISE TAX, AND THE BID, AS CORRECTED, MAY BE CONSIDERED IN MAKING AN AWARD.

IN THE EVENT THAT AN AWARD BE MADE TO COBOCO, INC., A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.

THE PAPERS, WITH THE EXCEPTION OF THE CORPORATION'S WORKSHEETS, ARE RETURNED.