B-123989, JUN. 1, 1955

B-123989: Jun 1, 1955

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED MAY 16. BY REASON OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE CORPORATION'S BID ON WHICH CONTRACT NO. WAS AWARDED. THERE CAN BE NO DOUBT THAT AN ERROR WAS MADE IN THE CORPORATION'S BID TO FURNISH BONDED WHISKEY OF ITS OWN MANUFACTURE. ALTHOUGH THE ERROR WAS NOT OBVIOUS ON THE FACE OF THE BID. THE FACT THAT THE OFFER TO FURNISH WHISKEY WAS MADE BY A WINERY MIGHT. VERY WELL HAVE JUSTIFIED A VERIFICATION OF THE BID PRIOR TO ACCEPTANCE.

B-123989, JUN. 1, 1955

TO THE HONORABLE H. V. HIGLEY, ADMINISTRATOR, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO A LETTER DATED MAY 16, 1955, WITH ENCLOSURES, FROM THE CHIEF PURCHASING AGENT, VETERANS ADMINISTRATION, REQUESTING A DECISION AS TO WHETHER THERE MAY BE GRANTED THE RELIEF SOUGHT BY THE URBANA WINE COMPANY, INC., BY REASON OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE CORPORATION'S BID ON WHICH CONTRACT NO. V1005 P 2343, WAS AWARDED.

INFORMAL INFORMATION RECEIVED FROM THE ALCOHOL AND TOBACCO TAX DIVISION OF INTERNAL REVENUE SERVICE AFFIRMS THE STATEMENT OF THE URBANA WINE COMPANY, INC., THAT IT HOLDS ONLY A WINE PRODUCERS PERMIT. HENCE, THERE CAN BE NO DOUBT THAT AN ERROR WAS MADE IN THE CORPORATION'S BID TO FURNISH BONDED WHISKEY OF ITS OWN MANUFACTURE; AND ALTHOUGH THE ERROR WAS NOT OBVIOUS ON THE FACE OF THE BID, THE FACT THAT THE OFFER TO FURNISH WHISKEY WAS MADE BY A WINERY MIGHT, IN ITSELF, VERY WELL HAVE JUSTIFIED A VERIFICATION OF THE BID PRIOR TO ACCEPTANCE.

IN VIEW OF THE FOREGOING, AND SINCE THE URBANA WINE COMPANY, INC., CANNOT FULFILL ITS CONTRACTUAL OBLIGATION UNDER THE PERMIT WHICH IT NOW HOLDS, CONTRACT NO. V1005 P 2343 MAY BE CANCELLED.

IN THE EVENT OF AN AWARD TO THE NEXT LOWEST ACCEPTABLE BIDDER UNDER THE SUBJECT INVITATION, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT OR THE VOUCHERS COVERING PAYMENT.