B-125196, AUG. 30, 1955

B-125196: Aug 30, 1955

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

VETERANS ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED AUGUST 15. THE FOLLOWING BIDS WERE RECEIVED ON THESE ITEMS: TABLE ITEM 1 ITEM 2 AMERICAN PIPE AND SUPPLY CO. 1.5536* .9943* GRINNELL COMPANY 2.554 1.853 THE MINE AND SMELTER SUPPLY CO. 1.5536 .9943 CRANE-O-FALLON COMPANY 2.55 1.85 *THIS BID WAS IDENTIFIED AS AN ALTERNATE BID ON GALVANIZED STEEL PIPE. THE CONTRACTING OFFICER BELIEVING THAT THE BID OF THE MINE AND SMELTER SUPPLY COMPANY ON ITEMS 1 AND 2 WAS IN ERROR. STATED THAT THE CAUSE OF THE ERROR WAS CARELESSNESS. THE COMPANY'S ALLEGED INTENDED BID IS SUPPORTED BY THE BID OF THE AMERICAN PIPE AND SUPPLY COMPANY WHICH WAS IDENTICAL AS TO PRICE. PROPERLY ANNOTATED TO SHOW THAT IT WAS AN ALTERNATE.

B-125196, AUG. 30, 1955

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

REFERENCE IS MADE TO A LETTER DATED AUGUST 15, 1955, WITH ENCLOSURES, FROM THE CHIEF PURCHASING AGENT, VETERANS ADMINISTRATION, RELATIVE TO AN ERROR WHICH THE MINE AND SMELTER SUPPLY COMPANY, 1422 SEVENTEENTH STREET, DENVER, COLORADO, ALLEGES IT MADE IN ITS BID DATED AUGUST 2, 1955, SUBMITTED IN RESPONSE TO INVITATION NO. 56-20, DATED JULY 28, 1955, ISSUED BY THE VETERANS ADMINISTRATION HOSPITAL, DENVER, COLORADO.

THE INVITATION SOLICITED PRICES ON SPECIFIED QUANTITIES OF PIPE, WROUGHT IRON, GALVANIZED, STANDARD WEIGHT AS PER FEDERAL SPECIFICATION WW-P-44IB, CLASS A, AS LISTED UNDER ITEMS 1 AND 2 ON THE INVITATION. THE FOLLOWING BIDS WERE RECEIVED ON THESE ITEMS:

TABLE

ITEM 1 ITEM 2 AMERICAN PIPE AND SUPPLY CO.

1.5536* .9943* GRINNELL COMPANY 2.554 1.853 THE MINE AND SMELTER SUPPLY CO. 1.5536 .9943 CRANE-O-FALLON COMPANY

2.55 1.85

*THIS BID WAS IDENTIFIED AS AN ALTERNATE BID ON GALVANIZED STEEL PIPE.

THE CONTRACTING OFFICER BELIEVING THAT THE BID OF THE MINE AND SMELTER SUPPLY COMPANY ON ITEMS 1 AND 2 WAS IN ERROR, REQUESTED THE BIDDER BY PHONE TO VERIFY THE BID. THE COMPANY, IN LETTERS DATED AUGUST 5 AND 8, 1955, CONFIRMING ADVICE PREVIOUSLY GIVEN BY TELEPHONE, CLAIMED THAT THEY HAD INTENDED TO OFFER AN ALTERNATE BID ON GALVANIZED STEEL PIPE AND NOT GALVANIZED WROUGHT IRON PIPE, AND STATED THAT THE CAUSE OF THE ERROR WAS CARELESSNESS. THE COMPANY'S ALLEGED INTENDED BID IS SUPPORTED BY THE BID OF THE AMERICAN PIPE AND SUPPLY COMPANY WHICH WAS IDENTICAL AS TO PRICE, BUT PROPERLY ANNOTATED TO SHOW THAT IT WAS AN ALTERNATE.

THE FACTS AND EVIDENCE OF RECORD REASONABLY ESTABLISH THAT THE COMPANY MADE A BONA FIDE ERROR IN ITS BID AS ALLEGED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED SATISFACTORILY BY THE COMPANY PRIOR TO AWARD, THE BID OF THE MINE AND SMELTER SUPPLY COMPANY SHOULD BE DISREGARDED.