B-127158, MAR. 8, 1956

B-127158: Mar 8, 1956

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TO THE HONORABLE SECRETARY OF THE ARMY: REFERENCE IS MADE TO LETTER DATED FEBRUARY 28. REQUESTING A DECISION AS TO WHETHER THE RELIEF REQUESTED BY WILL-NEW YORK. WAS BASED. L.I. 39 IN THAT THE PRICE OF $2 PER BOTTLE FOR THE ITEM ACTUALLY WAS ITS BID PRICE FOR 25-GRAM INSTEAD OF 200-GRAM BOTTLES OF THE STAIN. THAT ITS CORRECT PRICE FOR THE 50 200-GRAM BOTTLES THEREOF WAS $12 EACH. WHEREIN GENTIAN VIOLET IN 200-GRAM BOTTLES WAS $2 PER BOTTLE. THAT THE MANUFACTURER'S DISCOUNT WAS 40 PERCENT. THE ABSTRACT OF BIDS SHOWS THAT THE TWO OTHER BIDS ON ITEM L.I. 39 WERE $9.60 AND $12.80 PER BOTTLE. THE CORPORATION'S BID OF $2 PER BOTTLE ON THE ITEM WAS OUT OF LINE WITH THE OTHER BIDS RECEIVED THEREON.

B-127158, MAR. 8, 1956

TO THE HONORABLE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER DATED FEBRUARY 28, 1956, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY (LOGISTICS), REQUESTING A DECISION AS TO WHETHER THE RELIEF REQUESTED BY WILL-NEW YORK, INC., MAY BE GRANTED IN VIEW OF THE ALLEGED ERROR IN THE CORPORATION'S BID ON WHICH PURCHASE ORDER NO. O.I. 54183 DATED SEPTEMBER 20, 1955, ACCEPTED OCTOBER 3, 1955, WAS BASED.

THE NUMEROUS ITEMS TO BE FURNISHED BY THE CORPORATION UNDER THE ACCEPTED PURCHASE ORDER INCLUDED ITEM NO. L.I. 39 WHICH COVERED 50 BOTTLES OF "GENTIAN VIOLET, IMPROVED, B 278 COLEMAN AND BELL, 200 GM (WILJK)" AT $2 PER BOTTLE, THE PRICE IT HAD QUOTED THEREFOR. BY LETTER OF NOVEMBER 4, 1955, THE CORPORATION ADVISED THAT IT HAD MADE AN ERROR IN QUOTING A PRICE ON ITEM NO. L.I. 39 IN THAT THE PRICE OF $2 PER BOTTLE FOR THE ITEM ACTUALLY WAS ITS BID PRICE FOR 25-GRAM INSTEAD OF 200-GRAM BOTTLES OF THE STAIN, AND THAT ITS CORRECT PRICE FOR THE 50 200-GRAM BOTTLES THEREOF WAS $12 EACH. THEREFORE, IT REQUESTED THAT EITHER THE CONTRACT BE CANCELED AS TO ITEM NO. L.I. 39 OR THAT THE PRICE THEREFOR BE INCREASED FROM $2 TO $12 PER BOTTLE. HOWEVER, BY LETTER OF JANUARY 3, 1956, THE CORPORATION FORWARDED A COPY OF THE MANUFACTURER'S PRICE LIST DATED SEPTEMBER 1954, WHEREIN GENTIAN VIOLET IN 200-GRAM BOTTLES WAS $2 PER BOTTLE. IN THE LETTER THE CONTRACTOR STATED THAT IT INTENDS TO FURNISH THE ITEM AT $12 PER BOTTLE LESS THE MANUFACTURER'S DISCOUNT. UPON THE CONTRACTING OFFICER'S INQUIRY THE CORPORATION ADVISED BY LETTER OF JANUARY 9, 1956, THAT THE MANUFACTURER'S DISCOUNT WAS 40 PERCENT. HENCE, IT WOULD APPEAR THAT THE CORPORATION OFFERED IN ITS LETTER OF JANUARY 3, 1956, TO FURNISH THE PRODUCT AS REQUIRED AT $7.20 ($12 LESS 40 PERCENT) PER BOTTLE.

THE ABSTRACT OF BIDS SHOWS THAT THE TWO OTHER BIDS ON ITEM L.I. 39 WERE $9.60 AND $12.80 PER BOTTLE. THUS, THE CORPORATION'S BID OF $2 PER BOTTLE ON THE ITEM WAS OUT OF LINE WITH THE OTHER BIDS RECEIVED THEREON. IN VIEW THEREOF THE CONTRACTING OFFICER SHOULD HAVE NOTICED THE PROBABILITY THAT THE CORPORATION HAD MADE AN ERROR IN ITS BID ON ITEM NO. L.I. 39, AND THE BIDDER SHOULD HAVE BEEN AFFORDED AN OPPORTUNITY TO VERIFY ITS BID ON THAT ITEM BEFORE IT WAS ACCEPTED. SINCE THIS WAS NOT DONE, THE CORPORATION SHOULD NOT BE REQUIRED TO FURNISH ITEM NO. L.I. 39 AT A PRICE OF $2 PER 200-GRAM BOTTLE.

THE RECORD INDICATES THAT THERE HAS BEEN NO DELIVERY UNDER ITEM NO. L.I. 39. CONSEQUENTLY, UNLESS WILL-NEW YORK, INC., IS WILLING TO ACCEPT $7.20 PER BOTTLE, WHICH APPARENTLY IS ITS PROPOSED INTENDED CHARGE FOR THE STAIN, THE CONTRACT, AS TO ITEM L.I. 39, SHOULD BE CANCELED.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT AND RECOMMENDATION DATED DECEMBER 1, 1955, AND ONE OF THE DUPLICATE SET OF DOCUMENTS AND CORRESPONDENCE, ARE RETURNED.