B-150966, MAR. 25, 1963

B-150966, MAR. 25, 1963

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED MARCH 1, 1963, R1.3, WITH ENCLOSURES, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REQUESTING OUR DECISION AS TO WHETHER THERE PROPERLY MAY BE GRANTED THE RELIEF SOUGHT BY THE EDWARD M. SISON COMPANY, AGANA, GUAM, UNDER CONTRACT NO. N61119S-4873, DATED JULY 26, 1962, IN VIEW OF AN ERROR ALLEGED BY THE COMPANY TO HAVE BEEN MADE IN A PART OF THE BID UPON WHICH THE CONTRACT WAS AWARDED.

IN RESPONSE TO SALES INVITATION NO. B-12-63-61119, WHICH WAS ISSUED ON JUNE 20, 1962, BY THE DISPOSAL DEPARTMENT, NAVAL SUPPLY DEPOT, GUAM, THE EDWARD M. SISON COMPANY SUBMITTED A BID DATED JULY 20, 1962, OFFERING TO PURCHASE ITEM NO. 5, COVERING ONE 5-CUBIC-YARD GMC DUMP TRUCK FOR $906.75. ONE OTHER BID WAS RECEIVED FOR ITEM NO. 5 IN THE AMOUNT OF $189.90 AND THE ORIGINAL ACQUISITION COST OF THE ITEM WAS $4,765. ON JULY 26, 1962, THE HIGH BID OF THE EDWARD M. SISON COMPANY FOR ITEMS NOS. 5 AND 12 WAS ACCEPTED BY THE CONTRACTING OFFICER IN THE TOTAL AMOUNT OF $1,355.50, THEREBY CONSUMMATING CONTRACT NO. N61119S 4873. BY LETTER DATED AUGUST 29, 1962, THE SISON COMPANY ADVISED THE CONTRACTING OFFICER THAT A MISPLACED DECIMAL POINT HAD RESULTED IN AN ERROR IN ITS BID FOR ITEM NO. 5, IN THAT ITS ACTUAL BID OF $906.75 WAS INTENDED TO HAVE BEEN $90.675, ROUNDED OUT TO $90.68. IN VIEW OF THE ERROR, THE SISON COMPANY REQUESTS THAT IT BE PERMITTED TO WITHDRAW ITS BID ON ITEM NO. 5.

THE GOVERNMENT SALES CONTRACTING OFFICER HAS EXPRESSED THE OPINION THAT THE BID OF THE EDWARD M. SISON COMPANY FOR ITEM NO. 5 SHOULD HAVE BEEN VERIFIED BY THE ASSISTANT CONTRACTING OFFICER PRIOR TO AWARD, SINCE THE COMPANY'S BID FOR THIS ITEM WAS SUBSTANTIALLY GREATER THAN THE COMMERCIAL VALUE OF THE EQUIPMENT. IN THIS REGARD, THE COMPANY ACTUALLY HAD QUOTED A PRICE OF $906.75 FOR A DUMP TRUCK DESCRIBED AS BEING IN A USED AND POOR CONDITION, WITHOUT DUMP BODY AND WITH FOUR REAR TIRES, FAN BELT,DRIVE SHAFT AND OTHER PARTS MISSING, WHICH WOULD APPEAR TO BE AN EXORBITANT BID FOR A VEHICLE HAVING VERY LITTLE VALUE OTHER THAN AS JUNK. MOREOVER, IT IS REPORTED THAT THE PRICE RECEIVED FOR THE SALE OF A SIMILAR TRUCK WAS ONLY $357.75. UNDER THESE CIRCUMSTANCES, WE BELIEVE THE EDWARD M. SISON COMPANY MIGHT VERY PROPERLY HAVE BEEN GRANTED THE OPPORTUNITY TO VERIFY ITS BID ON ITEM NO. 5 PRIOR TO ITS ACCEPTANCE.

ACCORDINGLY, OUR OFFICE WILL NOT OBJECT TO A CANCELLATION OF ITEM NO. 5 FROM CONTRACT NO. N61119S-4873, IN THIS PARTICULAR CASE, WITHOUT LIABILITY TO THE EDWARD M. SISON COMPANY.