B-124129, JUN. 15, 1955

B-124129: Jun 15, 1955

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED MAY 26. TO HAVE BEEN MADE IN ITS UNDATED BID SUBMITTED IN RESPONSE TO INVITATION NO. 56-4. A DECISION IS REQUESTED AS TO WHETHER THE BID MAY BE CORRECTED. WAS EXTREMELY LOW IN COMPARISON WITH THE TWO OTHER BIDS OF $41 PER CYLINDER RECEIVED ON THAT ITEM AND. THE BIDDER IMMEDIATELY WAS REQUESTED BY TELEPHONE TO VERIFY THE BID. THE CORPORATION ADVISED THAT AN ERROR WAS MADE BY ITS TYPIST IN TRANSCRIBING THE BID PRICE ON ITEM NO. 4 FROM THE WORKSHEET TO THE BID FORM. THAT ITS INTENDED BID ON THE ITEM WAS $41 PER CYLINDER. IS THE PREVAILING MARKET PRICE OF THE PRODUCT. THERE IS NO DOUBT THAT A BONA FIDE ERROR WAS MADE BY THE CORPORATION IN ITS BID.

B-124129, JUN. 15, 1955

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

REFERENCE IS MADE TO A LETTER DATED MAY 26, 1955, WITH ENCLOSURES, FROM THE CHIEF PURCHASING AGENT, VETERANS ADMINISTRATION, RELATIVE TO AN ERROR ALLEGED BY KREISER'S INC., TO HAVE BEEN MADE IN ITS UNDATED BID SUBMITTED IN RESPONSE TO INVITATION NO. 56-4, DATED APRIL 26, 1955. A DECISION IS REQUESTED AS TO WHETHER THE BID MAY BE CORRECTED.

THE CONTRACTING OFFICER, IN HIS OFFICE MEMORANDUM OF MAY 19, 1955, STATES THAT HE NOTICED THE CORPORATION'S BID OF $12.68 PER 100-GALLON CYLINDER FOR CYCLOPROPANE GAS CALLED FOR UNDER ITEM NO. WAS EXTREMELY LOW IN COMPARISON WITH THE TWO OTHER BIDS OF $41 PER CYLINDER RECEIVED ON THAT ITEM AND, THEREFORE, THE BIDDER IMMEDIATELY WAS REQUESTED BY TELEPHONE TO VERIFY THE BID.

THE RECORD DISCLOSES THAT, IN THE TELEPHONE CONVERSATION ON OPENING DAY AND BY CONFIRMING LETTER OF THE SAME DAY, THE CORPORATION ADVISED THAT AN ERROR WAS MADE BY ITS TYPIST IN TRANSCRIBING THE BID PRICE ON ITEM NO. 4 FROM THE WORKSHEET TO THE BID FORM; THAT ITS INTENDED BID ON THE ITEM WAS $41 PER CYLINDER, AS SHOWN ON THE WORKSHEET, AND, THEREFORE, THE CORPORATION REQUESTED THAT ITS BID BE CORRECTED TO PROVIDE ACCORDINGLY. THE BIDDER'S ORIGINAL WORKSHEET, FORWARDED IN SUPPORT OF ITS ALLEGATION OF ERROR, ESTABLISHES SATISFACTORILY THAT THE TYPIST INSERTED A STYLE NUMBER "NO. 1268" IN LIEU OF THE UNIT PRICE SHOWN THEREIN FOR ITEM NO. 4 OF $41 PER CYLINDER AND CONFIRMS THE UNIT PRICES FOR THE LETTER, HAS REPORTED THAT AN INVESTIGATION DISCLOSES THAT $41 PER 100-GALLON OF CYCLOPROPANE GAS, IN SIZE B CYLINDERS, IS THE PREVAILING MARKET PRICE OF THE PRODUCT.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT A BONA FIDE ERROR WAS MADE BY THE CORPORATION IN ITS BID, AS ALLEGED, AND THAT ITS UNIT PRICE ON ITEM NO. 4 CLEARLY WAS INTENDED TO BE AS SPECIFIED ON ITS WORKSHEET. ACCORDINGLY, THE BID MAY BE CORRECTED SO AS TO PROVIDE FOR A UNIT PRICE OF $41, IN LIEU OF $12.68, ON ITEM NO. 4 AND THE BID, AS CORRECTED, MAY BE CONSIDERED ALONG WITH THE OTHER BIDS IN MAKING THE AWARD.

IN THE EVENT OF AN AWARD TO KREISER'S INC., A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.