B-177232, DEC 19, 1972
Highlights
SINCE THERE WAS A SUBSTANTIAL DIFFERENCE BETWEEN JAX'S AGGREGATE BID AND THE NEXT LOWEST AGGREGATE BID. NO SUCH PRICE DISPARITY WAS PRESENT AS TO OTHER BIDS SUBMITTED. THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF A POSSIBLE MISTAKE IN JAX'S BID. JOHNSON: REFERENCE IS MADE TO LETTER 134C DATED OCTOBER 5. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY THE JAX FIXTURE AND SUPPLY COMPANY TO HAVE BEEN MADE IN ITS BID UPON WHICH PURCHASE ORDER NO. 2706 WAS BASED. BIDS WERE REQUESTED FOR FURNISHING TWO ITEMS OF KITCHEN EQUIPMENT. AN AWARD IN THE AGGREGATE WAS CONTEMPLATED. THE BID OF THE COMPANY WAS ACCEPTED ON JUNE 28. JAX ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID ON ITEM 2 IN THAT IT HAD FAILED TO INCLUDE THE COST OF THE TABLE WHICH IT STATED WAS $1.
B-177232, DEC 19, 1972
CONTRACT - MISTAKE IN BID - CONSTRUCTIVE NOTICE DECISION ALLOWING EXECUTION OF A SUPPLEMENTAL AGREEMENT INCREASING THE PRICE OF A CONTRACT AWARDED TO JAX FIXTURE AND SUPPLY COMPANY BY THE VETERANS ADMINISTRATION FOR TWO ITEMS OF KITCHEN EQUIPMENT. SINCE THERE WAS A SUBSTANTIAL DIFFERENCE BETWEEN JAX'S AGGREGATE BID AND THE NEXT LOWEST AGGREGATE BID, AND NO SUCH PRICE DISPARITY WAS PRESENT AS TO OTHER BIDS SUBMITTED, THE CONTRACTING OFFICER WAS ON CONSTRUCTIVE NOTICE OF A POSSIBLE MISTAKE IN JAX'S BID. ACCORDINGLY, THE CONTRACT MAY BE ADJUSTED TO JAX'S ESTABLISHED INTENDED BID PRICE.
TO MR. DONALD E. JOHNSON:
REFERENCE IS MADE TO LETTER 134C DATED OCTOBER 5, 1972, WITH ENCLOSURES, FROM THE DIRECTOR, SUPPLY SERVICE, DEPARTMENT OF MEDICINE AND SURGERY, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY THE JAX FIXTURE AND SUPPLY COMPANY TO HAVE BEEN MADE IN ITS BID UPON WHICH PURCHASE ORDER NO. 2706 WAS BASED.
BY SOLICITATION NO. 622-29-72, BIDS WERE REQUESTED FOR FURNISHING TWO ITEMS OF KITCHEN EQUIPMENT. AN AWARD IN THE AGGREGATE WAS CONTEMPLATED. JAX FIXTURE AND SUPPLY COMPANY SUBMITTED A BID DATED JUNE 22, 1972, OFFERING TO FURNISH THE TWO ITEMS OF KITCHEN EQUIPMENT FOR AN AGGREGATE TOTAL PRICE OF $8,025.75. THE BID OF THE COMPANY WAS ACCEPTED ON JUNE 28, 1972.
BY LETTER DATED JULY 7, 1972, JAX ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID ON ITEM 2 IN THAT IT HAD FAILED TO INCLUDE THE COST OF THE TABLE WHICH IT STATED WAS $1,310. IN A LATER LETTER THE COMPANY STATED THAT IT HAD RECEIVED A QUOTATION FROM ITS SUPPLIER WHICH QUOTED A PRICE FOR THE TABLE AT $1,310. JAX HAS REQUESTED THAT THE CONTRACT PRICE BE INCREASED BY $1,310 TO COVER THE COST OF THE TABLE. IN SUPPORT OF ITS ALLEGATION OF ERROR, JAX SUBMITTED COPIES OF ITS SUPPLIER'S QUOTATIONS AND PRINTED PRICE LISTS.
THE CONTRACTING OFFICER RECOMMENDED THAT THE CONTRACT PRICE BE INCREASED BY $1,310 TO COVER THE COST OF THE TABLE BECAUSE HE SHOULD HAVE BEEN ON CONSTRUCTIVE NOTICE OF A POSSIBLE MISTAKE IN JAX'S BID. THE DIRECTOR, SUPPLY SERVICE, CONCURS IN THIS RECOMMENDATION, AND AGREES WITH THE CONCLUSION OF THE CONTRACTING OFFICER THAT JAX HAS ESTABLISHED ITS INTENDED BID PRICE.
THE ABSTRACT OF BIDS SHOWS THAT THE TEN OTHER AGGREGATE BIDS RANGE FROM $9,372 TO $11,494.60. IN VIEW OF THE SUBSTANTIAL DIFFERENCE ($1,346.25) BETWEEN JAX'S AGGREGATE BID AND THE NEXT LOWEST AGGREGATE BID AND THE FACT THAT SUCH PRICE DISPARITY WAS NOT PRESENT AS TO THESE OTHER BIDS, WE AGREE WITH THE CONCLUSIONS OF THE DIRECTOR, SUPPLY SERVICE, AND THE CONTRACTING OFFICER RESPECTING CONSTRUCTIVE NOTICE AND THE INTENDED BID PRICE.
ACCORDINGLY, AS ADMINISTRATIVELY RECOMMENDED, WE HAVE NO OBJECTION TO THE EXECUTION OF A SUPPLEMENTAL AGREEMENT INCREASING THE CONTRACT PRICE BY $1,310 WHICH WOULD STILL REPRESENT THE LOWEST BID PRICE. A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE SUPPLEMENTAL AGREEMENT.