B-124600, JUL. 15, 1955

B-124600: Jul 15, 1955

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF JULY 7. BIDS WERE REQUESTED. YOU STATE THAT 19 BIDS WERE RECEIVED ON THE CAP SCREWS RANGING FROM $0.27 TO $1.44 EACH AND THAT BECAUSE AER O LINE'S BID WAS LESS THAN ONE-HALF OF THE NEXT LOW BID ON THAT ITEM THE COMPANY WAS REQUESTED TO VERIFY ITS BID. THE COMPANY ADVISED THAT THE CORRECT PRICE IS $1.80 EACH AND NOT $0.27 EACH AND STATED THAT THE ERROR IN ITS BID WAS CAUSED BY ITS MISINTERPRETATION OF ITS SUPPLIER'S PRICE LIST. IT IS APPARENT THAT THE COMPANY MADE AN ERROR IN QUOTING A PRICE OF $0.27 EACH FOR ITEM 1.

B-124600, JUL. 15, 1955

TO MR. G. M. PLYMALE, CONTRACTING OFFICER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR LETTER OF JULY 7, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN REGARDING AN ERROR AER O LINE MANUFACTURING AND SUPPLY CO., BURBANK, CALIFORNIA, ALLEGES IT MADE IN ITS BID OPENED ON JULY 5, 1955.

BY INVITATION NO. 116-6565, BIDS WERE REQUESTED, UNDER ITEM 1, FOR FURNISHING STAINLESS STEEL SOCKET-HEAD CAP SCREWS, IN RESPONSE TO WHICH AER O LINE SUBMITTED A BID DATED JUNE 24, 1955, OFFERING TO FURNISH THE CAP SCREWS AT A UNIT PRICE OF $0.27 EACH.

YOU STATE THAT 19 BIDS WERE RECEIVED ON THE CAP SCREWS RANGING FROM $0.27 TO $1.44 EACH AND THAT BECAUSE AER O LINE'S BID WAS LESS THAN ONE-HALF OF THE NEXT LOW BID ON THAT ITEM THE COMPANY WAS REQUESTED TO VERIFY ITS BID. BY TELEGRAM DATED JULY 6, 1955, THE COMPANY ADVISED THAT THE CORRECT PRICE IS $1.80 EACH AND NOT $0.27 EACH AND STATED THAT THE ERROR IN ITS BID WAS CAUSED BY ITS MISINTERPRETATION OF ITS SUPPLIER'S PRICE LIST.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, IT IS APPARENT THAT THE COMPANY MADE AN ERROR IN QUOTING A PRICE OF $0.27 EACH FOR ITEM 1, AND ITS BID AS TO THAT ITEM SHOULD BE DISREGARDED.