B-134336, JAN. 28, 1958

TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED NOVEMBER 5. N62583S -13230 WAS AWARDED. WHICH WAS ACCOMPANIED BY A BID GUARANTEE IN THE AMOUNT OF $1. WAS ACCEPTED AS TO ITEM 31 AND OTHER ITEMS. THE BID OF F AND M SALVAGE ON ITEM 31 WAS IN THE AMOUNT OF $52 EACH AND THE SEVEN OTHER BIDS ON THAT ITEM WERE IN AMOUNTS RANGING FROM $14.39 EACH TO $3 EACH. THE CONTRACTING OFFICER STATED THAT A THOROUGH INVESTIGATION OF THE CONDITION AND USEFULNESS OF THE MATERIAL UNDER ITEM 31 REVEALED THAT SOME RAILS COULD BE USED AS TRACKAGE BUT THAT IT WAS DOUBTFUL WHETHER THE TOTAL QUANTITY WAS USABLE. IT WAS HIS OPINION THAT THE AMOUNT OF $572 QUOTED BY THE COMPANY FOR ITEM 31 WAS EXCESSIVE IN AN AMOUNT SUFFICIENT TO INDICATE THAT A MISTAKE WAS MADE BY THE COMPANY.