B-125560, SEP. 27, 1955

B-125560: Sep 27, 1955

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 22. THE UNIT SPECIFIED FOR ITEM 1 IS "LB.'. THE CONTRACTING OFFICER STATES THAT AT THE TIME THE BID OF THE WARD BAKING COMPANY WAS OPENED IT WAS APPARENT THAT THE COMPANY HAD ERRED IN QUOTING A PRICE OF $0.28 PER POUND FOR ITEM 1C. IT ADVISED THAT THE PRICE OF $0.28 BID BY THE COMPANY FOR ITEM 1C WAS FOR A 2-POUND LOAF OF BREAD RATHER THAN FOR ONE POUND OF BREAD. ON WHICH UNIT BIDS WERE INVITED. IN HIS LETTER THE CONTRACTING OFFICER STATES FURTHER THAT THE RETAIL PRICE OF TWO 1-POUND LOAVES OF WHITE BREAD IN THE LOCAL A AND P STORE IS $0.29. THE INTENTION TO BID $0.14 PER POUND FOR ITEM 1C IS OBVIOUS AND THE ERROR PATENT.

B-125560, SEP. 27, 1955

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

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 22, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN REGARDING AN ERROR THE WARD BAKING COMPANY, CLEVELAND, OHIO, ALLEGES IT MADE IN ITS BID DATED SEPTEMBER 9, 1955.

THE VETERANS ADMINISTRATION HOSPITAL, ERIE, PENNSYLVANIA, BY INVITATION NO. 56-18, REQUESTED BIDS FOR FURNISHING, AMONG OTHER BAKERY ITEMS, AN ESTIMATED QUANTITY OF WHITE BREAD DURING THE PERIOD FROM OCTOBER 1, 1955, TO JUNE 30, 1956, INCLUSIVE, ITEM 1C. ITEM 1 REQUIRES SLICED FRESH WHITE BREAD IN 2-POUND PULLMAN LOAVES. THE UNIT SPECIFIED FOR ITEM 1 IS "LB.' IN RESPONSE, THE WARD BAKING COMPANY OFFERED TO FURNISH, AMOUNT OTHER ITEMS, THE WHITE BREAD UNDER ITEM 1C AT A UNIT PRICE OF $0.28.

IN HIS LETTER OF SEPTEMBER 16, 1955, THE CONTRACTING OFFICER STATES THAT AT THE TIME THE BID OF THE WARD BAKING COMPANY WAS OPENED IT WAS APPARENT THAT THE COMPANY HAD ERRED IN QUOTING A PRICE OF $0.28 PER POUND FOR ITEM 1C, SINCE WHITE BREAD SELLS FOR CONSIDERABLY LESS THAN THAT AMOUNT IN THE ERIE AREA. APPARENTLY BEFORE THE CONTRACTING OFFICER COULD REQUEST VERIFICATION OF ITS BID PRICE ON ITEM 1C THE COMPANY DISCOVERED ITS ERROR, AND BY LETTER DATED SEPTEMBER 15, 1955, IT ADVISED THAT THE PRICE OF $0.28 BID BY THE COMPANY FOR ITEM 1C WAS FOR A 2-POUND LOAF OF BREAD RATHER THAN FOR ONE POUND OF BREAD, ON WHICH UNIT BIDS WERE INVITED. THE COMPANY REQUESTED THAT THE UNIT PRICE OF ITEM 1C BE CORRECTED TO READ $0.14 PER POUND.

IN HIS LETTER THE CONTRACTING OFFICER STATES FURTHER THAT THE RETAIL PRICE OF TWO 1-POUND LOAVES OF WHITE BREAD IN THE LOCAL A AND P STORE IS $0.29. THUS, THE INTENTION TO BID $0.14 PER POUND FOR ITEM 1C IS OBVIOUS AND THE ERROR PATENT. ACCORDINGLY, THE BID OF THE WARD BAKING COMPANY MAY BE CORRECTED TO PROVIDE FOR A PRICE OF $0.14 PER POUND FOR ITEM 1C.

IN THE EVENT THAT AWARD BE MADE TO THE WARD BAKING COMPANY ON ITEM 1C, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.