B-128089, JUN. 7, 1956

B-128089: Jun 7, 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 MAY 31. THE RECORD SHOWS THAT THE BIDS WERE OPENED ON APRIL 17. THE CORPORATION ADVISED THAT IT HAD DISCOVERED AN ARITHMETICAL ERROR IN ITS COST ANALYSIS ON WHICH THE BID PRICES ON ITEMS NOS. 1 AND 2 WERE BASED. ITS INTENDED UNIT PRICE BIDS WERE $0.399 ON ITEM NO. 1 AND $0.414 ON ITEM NO. 2. THERE IS LITTLE. DOUBT THAT A BONA FIDE ERROR WAS MADE BY THE BIDDER IN COMPUTING ITS PRICES ON ITEMS NOS. 1 AND 2. SINCE THE ERROR WAS ALLEGED AND EXPLAINED BY THE ACME COTTON PRODUCTS CO. ARE RETURNED.

B-128089, JUN. 7, 1956

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

REFERENCE IS MADE TO YOUR LETTER OF MAY 31, 1956, WITH ENCLOSURES, RELATIVE TO AN ALLEGED ERROR ON ITEMS NOS. 1 AND 2 OF AN UNDATED BID SUBMITTED BY ACME COTTON PRODUCTS CO., INC., IN RESPONSE TO INVITATION NO. A-250-H, DATED APRIL 2, 1956. YOU REQUEST A DECISION AS TO WHETHER THE BID ON THESE TWO ITEMS MAY BE WITHDRAWN.

THE RECORD SHOWS THAT THE BIDS WERE OPENED ON APRIL 17, 1956; THAT, BY LETTER DATED APRIL 18, 1956, THE CORPORATION ADVISED THAT IT HAD DISCOVERED AN ARITHMETICAL ERROR IN ITS COST ANALYSIS ON WHICH THE BID PRICES ON ITEMS NOS. 1 AND 2 WERE BASED; AND THAT INSTEAD OF ITS QUOTATIONS OF $0.299 PER PACKAGE ON ITEM NO. 1 AND $0.314 PER PACKAGE ON ITEM NO. 2, ITS INTENDED UNIT PRICE BIDS WERE $0.399 ON ITEM NO. 1 AND $0.414 ON ITEM NO. 2. BY REASON OF THE ALLEGED ERROR, IT REQUESTED PERMISSION TO WITHDRAW ITS BID ON THE TWO ITEMS. IN RESPONSE TO A TELEPHONE REQUEST THAT IT SUPPORT ITS ALLEGATION OF ERROR BY A CERTIFIED STATEMENT, THE CORPORATION, BY LETTER DATED MAY 14, 1956, FURNISHED A VERIFIED STATEMENT IN SUBSTANTIATION OF ITS ALLEGATION OF HOW THE ERROR OCCURRED IN COMPUTING THE PRICES IT QUOTED ON ITEMS NOS. 1 AND 2, AND REPEATED THEREIN ITS REQUEST FOR RELIEF FROM THE CONSEQUENCES OF THE ERROR.

ON THE BASIS OF THE REPORTED FACTS AND EVIDENCE OF RECORD, THERE IS LITTLE, IF ANY, DOUBT THAT A BONA FIDE ERROR WAS MADE BY THE BIDDER IN COMPUTING ITS PRICES ON ITEMS NOS. 1 AND 2, AS ALLEGED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED BY THE ACME COTTON PRODUCTS CO., INC., PROMPTLY AFTER THE OPENING AND PRIOR TO AWARD, THE BID OF THE CORPORATION MAY BE DISREGARDED IN MAKING THE AWARD.

ALL PAPERS FORWARDED WITH YOUR LETTER OF MAY 31, 1956, ARE RETURNED, AS REQUESTED.