B-126021, NOV. 17, 1955

B-126021: Nov 17, 1955

Additional Materials:

Contact:

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

 

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

TO THE HONORABLE SECRETARY OF THE INTERIOR: REFERENCE IS MADE TO A LETTER DATED NOVEMBER 8. IT IS STATED THAT BECAUSE THE AMOUNT OF DISCOUNT OFFERED BY THE WESTINGHOUSE ELECTRIC CORPORATION IN ITS BID APPEARED EXCESSIVE. THE CORPORATION WAS REQUESTED TO VERIFY ITS BID. THE CORPORATION ADVISED THAT THE INSERTION OF THE 30 PERCENT PROMPT PAYMENT DISCOUNT IN ITS BID WAS A TYPOGRAPHICAL ERROR AND THAT ITS BID SHOULD HAVE READ "NET 30 DAYS.'. SHOWS THAT THE THREE OTHER BIDS ON THE EQUIPMENT WERE IN THE AMOUNTS OF $792. IT IS OBVIOUS THAT THE WESTINGHOUSE ELECTRIC CORPORATION DID NOT INTEND TO OFFER A PROMPT PAYMENT DISCOUNT OF 30 PERCENT FOR PAYMENT WITHIN 30 CALENDAR DAYS. SINCE IT WAS BELIEVED THAT THE BID OF THE CORPORATION WAS ERRONEOUS AS TO THE 30 PERCENT DISCOUNT AND SINCE SUCH BELIEF WAS CONFIRMED BY THE CORPORATION PRIOR TO AWARD.

B-126021, NOV. 17, 1955

TO THE HONORABLE SECRETARY OF THE INTERIOR:

REFERENCE IS MADE TO A LETTER DATED NOVEMBER 8, 1955, WITH ENCLOSURES, FROM L. M. STRAUB, CONTRACTING OFFICER, GEOLOGICAL SURVEY, WASHINGTON, D.C., REQUESTING A DECISION AS TO WHETHER THE BID OF THE WESTINGHOUSE ELECTRIC CORPORATION, WASHINGTON, D.C., SUBMITTED IN RESPONSE TO INVITATION NO. 2055, OFFERING TO FURNISH ONE TEMPERATURE CONTROLLED DEVELOPING TANK ASSEMBLY FOR $912, MAY BE DISREGARDED AS TO THE PROMPT PAYMENT DISCOUNT INSERTED INITS BID.

IN THE SPACE PROVIDED IN THE BID FORM FOR SHOWING THE RATES OF PROMPT PAYMENT DISCOUNTS, THE WESTINGHOUSE ELECTRIC CORPORATION OFFERED A DISCOUNT OF 30 PERCENT FOR PAYMENT WITHIN 30 CALENDAR DAYS. IN THE LETTER OF NOVEMBER 8, 1955, IT IS STATED THAT BECAUSE THE AMOUNT OF DISCOUNT OFFERED BY THE WESTINGHOUSE ELECTRIC CORPORATION IN ITS BID APPEARED EXCESSIVE, THE CORPORATION WAS REQUESTED TO VERIFY ITS BID. BY LETTER DATED NOVEMBER 3, 1955, THE CORPORATION ADVISED THAT THE INSERTION OF THE 30 PERCENT PROMPT PAYMENT DISCOUNT IN ITS BID WAS A TYPOGRAPHICAL ERROR AND THAT ITS BID SHOULD HAVE READ "NET 30 DAYS.'

THE LIST OF BIDS IN THE LETTER OF NOVEMBER 8, 1955, SHOWS THAT THE THREE OTHER BIDS ON THE EQUIPMENT WERE IN THE AMOUNTS OF $792, $807.30, AND $872; THAT TWO OF THE BIDS OFFERED NO PROMPT PAYMENT DISCOUNT; AND THAT THE THIRD BID OFFERED A PROMPT PAYMENT DISCOUNT OF 1 PERCENT FOR PAYMENT WITHIN 10 CALENDAR DAYS. IT IS OBVIOUS THAT THE WESTINGHOUSE ELECTRIC CORPORATION DID NOT INTEND TO OFFER A PROMPT PAYMENT DISCOUNT OF 30 PERCENT FOR PAYMENT WITHIN 30 CALENDAR DAYS.

ACCORDINGLY, SINCE IT WAS BELIEVED THAT THE BID OF THE CORPORATION WAS ERRONEOUS AS TO THE 30 PERCENT DISCOUNT AND SINCE SUCH BELIEF WAS CONFIRMED BY THE CORPORATION PRIOR TO AWARD, THE BID OF THE WESTINGHOUSE ELECTRIC CORPORATION MAY BE DISREGARDED IN MAKING THE AWARD.

THE PAPERS SUBMITTED WITH THE LETTER OF NOVEMBER 8, 1955, ARE RETURNED.