B-124793, AUG. 2, 1955

B-124793, AUG. 2, 1955

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

REFERENCE IS MADE TO LETTER OF JULY 21, 1955, WITH ENCLOSURES, FROM THE ACTING CHIEF PURCHASING AGENT, VETERANS ADMINISTRATION, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO ERRORS WHICH THE GEORGE T. GERHARDT COMPANY, INC., AND THE GLADWIN RESTAURANT SUPPLY COMPANY ALLEGE THEY MADE IN THEIR BIDS SUBMITTED IN RESPONSE TO INVITATION NO. M- 268, ISSUED BY THE DEPARTMENT OF MEDICINE AND SURGERY.

THE INVITATION REQUESTED BIDS FOR FURNISHING VARIOUS QUANTITIES OF SAUCEPANS, STEAM TABLE OR FOOD CONVEYOR PANS, AND BUN PANS, ITEMS 1, 2 AND 3, RESPECTIVELY. THE GEORGE T. GERHARDT COMPANY, INC., SUBMITTED A BID OFFERING TO FURNISH EACH OF ITEMS 1, 2, AND 3 AT A UNIT PRICE OF $4.59. THE GLADWIN RESTAURANT SUPPLY COMPANY SUBMITTED A BID OFFERING TO FURNISH ITEMS 1, 2 AND 3 AT UNIT PRICES OF $3.25, $2.95, AND $10.50, RESPECTIVELY.

IN THE LETTER OF JULY 21, 1955, IT IS STATED THAT IN EXAMINING THE BIDS IT WAS NOTED THAT THE GEORGE T. GERHARDT COMPANY, INC., HAD QUOTED AN IDENTICAL PRICE FOR ALL THREE ITEMS AND THAT THE BID OF THE GLADWIN RESTAURANT SUPPLY COMPANY OF $2.95 EACH FOR ITEM 2 WAS OUT OF LINE WITH THE OTHER BIDS AND WITH THE PRICE ($5.50) QUOTED BY THE SUCCESSFUL BIDDER FOR THE SAME ITEM LAST YEAR. THEREFORE, THE COMPANIES WERE REQUESTED TO VERIFY THEIR BIDS.

BY TELEGRAM DATED JUNE 13, AND CONFIRMING LETTER DATED JULY 13, 1955, THE GEORGE T. GERHARDT COMPANY, INC., ADVISED THAT IT INTENDED TO BID ON ITEM 1 ONLY AS IT WAS NOT EQUIPPED TO HANDLE ITEMS 2 AND 3 AND THAT THE PRICE FOR ITEM 1 WAS INADVERTENTLY INSERTED OPPOSITE ITEMS 2 AND 3 AND, THEREFORE, THE CORPORATION REQUESTED THAT ITS BID ON ITEMS 2 AND 3 BE WITHDRAWN.

ON THE BASIS OF FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT THE GEORGE T. GERHARDT COMPANY, INC., MADE AN ERROR OF SOME KIND IN ITS BID.

BY LETTER DATED JUNE 25, 1955, THE GLADWIN RESTAURANT SUPPLY COMPANY ADVISED THAT IT WAS UNABLE TO DETERMINE WHETHER THE SAUCEPAN IT WAS OFFERING UNDER ITEM 2 WAS IN ACCORDANCE WITH THE SPECIFICATIONS AND THAT A COPY OF THE SPECIFICATIONS SHOULD BE SENT TO THEM. A COPY OF THE SPECIFICATIONS WAS SENT TO THE COMPANY AND BY LETTER DATED JULY 7, 1955, THE COMPANY ADVISED THAT THE SAUCEPAN IT WAS OFFERING UNDER ITEM 2 WAS NOT IN ACCORDANCE WITH THE SPECIFICATIONS AND, THEREFORE, THE COMPANY REQUESTED THAT ITS BID ON ITEM 2 BE WITHDRAWN.

THE LIST OF BIDS IN YOUR LETTER SHOWS THAT THE OTHER BIDS, EXCLUDING THE BID OF THE GEORGE T. GERHARDT COMPANY, INC., ON ITEM 2 WERE IN THE AMOUNTS OF $5.90 AND $6.41. THUS, THE BID OF THE GLADWIN RESTAURANT SUPPLY COMPANY OF $2.95 FOR ITEM 2 APPEARS TO BE OUT OF LINE WITH THE OTHER BIDS ON ITEM 2.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT THIS COMPANY ALSO MADE AN ERROR IN ITS BID, AS ALLEGED.

ACCORDINGLY, SINCE IT WAS BELIEVED THAT THE BIDS OF THE GEORGE T. GERHARDT COMPANY, INC., AND THE GLADWIN RESTAURANT SUPPLY COMPANY WERE ERRONEOUS AND SUCH BELIEF WAS CONFIRMED BY THE COMPANIES PRIOR TO AWARD, THE BID OF THE GEORGE T. GERHARDT COMPANY, INC., AS TO ITEMS 2 AND 3, AND THE BID OF THE GLADWIN RESTAURANT SUPPLY COMPANY AS TO ITEM 2 SHOULD BE DISREGARDED.