B-127133, MAR. 5, 1956

B-127133: Mar 5, 1956

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 27. SINCE THE BID WAS OUT OF LINE WITH THE FIVE OTHER BIDS RECEIVED RANGING FROM $0.15 TO $0.244 PER POUND. THAT THE PRICE OF $0.38 QUOTED ON ITEM NO. 3 WAS INTENDED AS THE PRICE FOR ONE POUND AND NOT FOR ONE BOX OF 30 POUNDS. THERE IS NO DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID AS ALLEGED. SINCE THE CONTRACTING OFFICER BELIEVED THE BID ON ITEM NO. 3 WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED SATISFACTORILY BY THE GLOBE GROCERY COMPANY PRIOR TO AWARD. ARE RETURNED.

B-127133, MAR. 5, 1956

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

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 27, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER AN UNDATED BID SUBMITTED BY THE GLOBE GROCERY COMPANY MAY BE WITHDRAWN IN VIEW OF THE BIDDER'S ALLEGATION OF ERROR.

THE CONTRACTING OFFICER PROPERLY TOOK NOTICE OF THE PROBABILITY OF ERROR IN THE COMPANY'S BID OF $0.38 PER BOX ($0.01266 PER POUND) FOR THE THREE 30-POUND BOXES OF PITTED DATES CALLED FOR UNDER ITEM NO. 3, SINCE THE BID WAS OUT OF LINE WITH THE FIVE OTHER BIDS RECEIVED RANGING FROM $0.15 TO $0.244 PER POUND. UPON BEING REQUESTED TO VERIFY THE BID THE COMPANY ADVISED BY LETTERS OF FEBRUARY 3 AND 13, 1956, THAT THE PRICE OF $0.38 QUOTED ON ITEM NO. 3 WAS INTENDED AS THE PRICE FOR ONE POUND AND NOT FOR ONE BOX OF 30 POUNDS.

IN VIEW OF THE EXTREMELY LOW PRICE QUOTED BY THE COMPANY FOR THE PRODUCT INVOLVED AND THE DISCREPANCY BETWEEN ITS BID AND THE OTHER BIDS RECEIVED ON ITEM NO. 3, THERE IS NO DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID AS ALLEGED. ACCORDINGLY, SINCE THE CONTRACTING OFFICER BELIEVED THE BID ON ITEM NO. 3 WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED SATISFACTORILY BY THE GLOBE GROCERY COMPANY PRIOR TO AWARD, THE BID OF THE COMPANY AS TO ITEM NO. 3 SHOULD BE DISREGARDED IN MAKING THE AWARD.

THE PAPERS FORWARDED WITH YOUR LETTER OF FEBRUARY 27, 1956, ARE RETURNED.