B-127418, MAR. 29, 1956

B-127418: Mar 29, 1956

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR UNDATED LETTER. THE PRICES QUOTED BY THE CORPORATION ON THESE ITEMS ARE OUT OF LINE WITH THE SEVEN OTHER BIDS RECEIVED AND THE RANGE OF PRICES QUOTED BY THE OTHER BIDDERS WOULD INDICATE THAT THE PREVAILING MARKET PRICE FOR THE EMULSIFIER EQUAL TO AGRIMUL. AS CALLED FOR UNDER THE THREE ITEMS OF SCHEDULE V IS GREATLY IN EXCESS OF $0.36 PER GALLON. THE CONCLUSION IS WARRANTED THAT THE CORPORATION MADE A BONA FIDE ERROR IN ITS BID ON THESE THREE ITEMS. SINCE IT WAS BELIEVED THAT THE BID WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED SATISFACTORILY BY THE CORPORATION PRIOR TO AWARD.

B-127418, MAR. 29, 1956

TO MR. G. M. PLYMALE, CONTRACTING OFFICER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR UNDATED LETTER, WITH ENCLOSURES, RECEIVED MARCH 26, 1956, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO ITEMS NOS. 13, 14 AND 15, SCHEDULE V, OF A BID DATED MARCH 7, 1956, SUBMITTED BY VAN WATERS AND ROGERS, INC., IN VIEW OF THE BIDDER'S ALLEGATION OF ERROR.

THE PRICES QUOTED BY THE CORPORATION ON THESE ITEMS ARE OUT OF LINE WITH THE SEVEN OTHER BIDS RECEIVED AND THE RANGE OF PRICES QUOTED BY THE OTHER BIDDERS WOULD INDICATE THAT THE PREVAILING MARKET PRICE FOR THE EMULSIFIER EQUAL TO AGRIMUL, AS CALLED FOR UNDER THE THREE ITEMS OF SCHEDULE V IS GREATLY IN EXCESS OF $0.36 PER GALLON, THE PRICE QUOTED BY THE CORPORATION. THEREFORE, THE CONCLUSION IS WARRANTED THAT THE CORPORATION MADE A BONA FIDE ERROR IN ITS BID ON THESE THREE ITEMS, AS ALLEGED.

ACCORDINGLY, SINCE IT WAS BELIEVED THAT THE BID WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED SATISFACTORILY BY THE CORPORATION PRIOR TO AWARD, THE BID OF VAN WATERS AND ROGERS, INC., AS TO ITEMS NOS. 13, 14, AND 15, SCHEDULE V, SHOULD BE DISREGARDED.