B-127072, FEB. 28, 1956

B-127072: Feb 28, 1956

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 YOUR LETTER OF FEBRUARY 20. BELIEVING THAT THE BID OF THE COMPANY WAS IN ERROR. CONFIRMED THE SUSPECTED ERROR BY STATING THAT THE PRICE PER CAN SHOULD HAVE BEEN $1.32 RATHER THAN $0.66. THE PRICE QUOTED BY THE COMPANY ON ITEM 18 APPEARED TO BE OUT OF LINE WITH THE PRICES QUOTED BY THE OTHER BIDDERS AND THE CONTRACTING OFFICER'S REQUEST FOR CONFIRMATION OF THE BID WAS NECESSARY AND PROPER. SINCE THE PROBABILITY OF ERROR WAS APPARENT ON THE FACE OF THE BID.

B-127072, FEB. 28, 1956

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

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 20, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR WHICH NIEHAUS BROS., CINCINNATI 2, OHIO, ALLEGES IT MADE IN ITS BID DATED JANUARY 27, 1956, SUBMITTED IN RESPONSE TO INVITATION 56-108 ISSUED BY THE VETERANS ADMINISTRATION HOSPITAL, LEXINGTON, KENTUCKY, ON JANUARY 24, 1956.

THE INVITATION REQUESTED BIDS FOR FURNISHING CERTAIN SUBSISTENCE ITEMS TO THE HOSPITAL. IN RESPONSE, NIEHAUS BROS. SUBMITTED, AMONG OTHERS, A BID ON ITEM 18, 72 CANS, VEGETABLES, CHOP SUEY, 6 NO. 10 CANS, AT A PRICE PER CAN OF $0.66.

THE CONTRACTING OFFICER, BELIEVING THAT THE BID OF THE COMPANY WAS IN ERROR, REQUESTED THE BIDDER TO VERIFY THE BID IN LETTER OF FEBRUARY 3, 1956. THE COMPANY, IN ITS REPLY OF FEBRUARY 4, 1956, CONFIRMED THE SUSPECTED ERROR BY STATING THAT THE PRICE PER CAN SHOULD HAVE BEEN $1.32 RATHER THAN $0.66, AND THAT THE ERROR HAD OCCURRED BY DIVIDING THE PRICE PER CASE BY 12 INSTEAD OF 6.

THE ABSTRACT OF BIDS SHOWS THAT FOUR OTHER BIDDERS QUOTED PRICES ON ITEM 18 RANGING FROM $1.195 TO $1.6166 PER CAN. THUS, THE PRICE QUOTED BY THE COMPANY ON ITEM 18 APPEARED TO BE OUT OF LINE WITH THE PRICES QUOTED BY THE OTHER BIDDERS AND THE CONTRACTING OFFICER'S REQUEST FOR CONFIRMATION OF THE BID WAS NECESSARY AND PROPER.

ACCORDINGLY, SINCE THE PROBABILITY OF ERROR WAS APPARENT ON THE FACE OF THE BID, AND THE BIDDER PROMPTLY ALLEGED ERROR PRIOR TO AWARD, THE BID OF NIEHAUS BROS., AS TO ITEM 18, COULD NOT PROPERLY BE ACCEPTED AND SHOULD BE DISREGARDED IN MAKING THE AWARD.