B-110527, JUL 18, 1952

B-110527, JUL 18, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF THE ARMY:

I HAVE YOUR LETTER OF JUNE 26, 1952, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY ARTHUR S. LAPINE & COMPANY TO HAVE BEEN MADE IN QUOTING ON ITEM 9 OF ITS BID DATED FEBRUARY 13, 1952, ON WHICH CONTRACT NO. MPA-30-287-MD 14990 IS BASED.

THE ARMED SERVICES MEDICAL PROCUREMENT AGENCY, BROOKLYN, NEW YORK, BY INVITATION NO. MPA-30-287-ME-52-1006, REQUESTED BIDS - TO BE OPENED FEBRUARY 14, 1952 - FOR FURNISHING, AMONG OTHER ITEMS, 2,700 PACKAGES OF TEST TUBES, 32 X 200 MM, 12 IN A PACKAGE, AS PER PURCHASE DESCRIPTION NO. 1, DATED JANUARY 25, 1951, ITEM 9. IN RESPONSE TO THE INVITATION, ARTHUR S. LAPINE & COMPANY SUBMITTED A BID WHEREIN IT OFFERED TO FURNISH, AMONG OTHERS, TEST TUBES UNDER ITEM 9 AT A PRICE OF $2.09-3/10 PER PACKAGE OF 12; AND IN ITS BID UNDER SAID ITEM THE COMPANY STATED "WE ARE QUOTING ON CORNING GLASS #9820-32 X 300 MM."

IN A REPORT DATED JUNE 12, 1952, FROM THE CONTRACTING OFFICER, IT WAS STATED THAT WHEN THE BIDS WERE OPENED, IT WAS NOTED THAT THE PRICE QUOTED BY ARTHUR S. LAPINE & COMPANY ON ITEM 9 WAS DEFINITELY OUT OF LINE WITH THE OTHER BIDS THEREON, BUT THAT SINCE THE COMPANY HAD SPECIFIED IN ITS BID THAT IT WAS QUOTING ON "CORNING CLASS #9820," WHICH MEETS THE SPECIFICATION REQUIREMENTS, SAID ITEM WAS AWARDED TO ARTHUR S. LAPINE & COMPANY ON FEBRUARY 26, 1952, ON THE BASIS OF ITS BID PRICE OF $2.09-3/10 PER PACKAGE OF 12.

BY LETTER DATED FEBRUARY 26, 1952, ARTHUR S. LAPINE & COMPANY ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT THE PRICE FOR ITEM 9 SHOULD HAVE BEEN SHOWN AS $3.488-1/3 PER PACKAGE OF 12. IN REPLY THERETO, THE CONTRACTING OFFICER ADVISED THE COMPANY BY LETTER DATED MARCH 11, 1952, THAT HE WAS WITHOUT AUTHORITY TO GRANT ANY RELIEF; THAT THE COMPANY SHOULD PROCEED WITH THE PERFORMANCE OF SAID CONTRACT; AND THAT IT COULD SUBMIT A DETAILED STATEMENT TO SHOW HOW THE ERROR OCCURRED TOGETHER WITH ITS WORK SHEETS IN SUPPORT THEREOF AND UPON RECEIPT THEREOF THE MATTER WOULD BE SUBMITTED TO THE GENERAL ACCOUNTING OFFICE FOR CONSIDERATION.

WITH A LETTER DATED APRIL 15, 1952, ADDRESSED TO THE CONTRACTING OFFICER, ARTHUR S. LAPINE & COMPANY FURNISHED A COST BREAKDOWN ON THE TEST TUBES COVERED BY ITEM 9 SETTING FORTH THE PRICES FOR ALL ITEMS OF COST, EXCEPT IN AND OUT FREIGHT, WHICH PRICES TOTAL $2.6949. IN FURTHER SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED BY LETTER DATED MAY 19, 1952, THE PRINTED PRICE LIST OF ITS SUPPLIER, CORNING GLASS COMPANY, WHICH SPECIFIES A NET PRICE OF $20.93 PER PACKAGE OF 72, IN ASSORTMENTS OF 100 PACKAGES, FOR CULTURE TUBES, 32 X 200MM. IN A LETTER DATED JUNE 6, 1952, THE COMPANY STATED THAT THE ERROR OCCURRED BECAUSE SAID PRICE OF $20.93 WAS DIVIDED BY 10 INSTEAD OF BY 6.

THE ABSTRACT OF BIDS SHOWS THAT THE THREE OTHER BIDS ON ITEM 9 - ALL OFFERING CORNING GLASS WORKS' PRODUCT - WERE IN THE AMOUNTS OF $3.488333, $3.54 AND $3.63 PER PACKAGE OF 12. THUS, THE BID OF ARTHUR S. LAPINE & COMPANY OF $2.09-3/10 PER PACKAGE OF 12 FOR ITEM 9 IS OUT OF LINE WITH THE OTHER BIDS THEREON AND SUCH CIRCUMSTANCE IS STATED IN THE REFERRED-TO REPORT OF JUNE 12, 1952, TO HAVE BEEN NOTED WHEN THE BIDS WERE EVALUATED; HENCE, THE BID SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS LITTLE ROOM FOR DOUBT THAT ARTHUR S. LAPINE & COMPANY MADE AN ERROR IN QUOTING ON ITEM 9, AS ALLEGED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED BY ARTHUR S. LAPINE & COMPANY ON THE SAME DATE THAT ITS BID WAS ACCEPTED - AND APPARENTLY BEFORE IT BECAME AWARE OF THE ACCEPTANCE OF ITS BID - THE COMPANY MAY BE RELIEVED FROM OBLIGATION UNDER ITS BID AS TO ITEM 9.

IN THE EVENT THAT THE TEST TUBES HAVE BEEN DELIVERED, PAYMENT IS AUTHORIZED TO BE MADE THEREFOR AT A PRICE NOT IN EXCESS OF THE NEXT LOW BID ON ITEM 9. A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING PAYMENT FOR THE TEST TUBES.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT DATED JUNE 12, 1952, ARE RETURNED HEREWITH.