B-128357, JUL. 11, 1956

B-128357: Jul 11, 1956

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INSOFAR AS IS PERTINENT. INSOFAR AS IS PERTINENT. PROVIDES: "* * * PROSPECTIVE BIDDERS ARE INFORMED THAT ITEM 2 OF THE ABOVE INVITATION IS HEREBY DELETED. WHEN THE BIDS WERE OPENED ON MAY 29. IT WAS FOUND THAT THE ORIGINAL BID OF CHROMCRAFT CORPORATION OFFERED ITEM 2 AT $14.45 PER UNIT AND THAT ITEM 3 WAS AMENDED TO READ AS FOLLOWS: "3. CALIFORNIA 110 EACH $7.30" JULY 1956 144 EACH THE ADDENDUM WHICH WAS EXECUTED ON MAY 24. THE SAME DATE THE ORIGINAL BID WAS SIGNED. SHOWED THAT THE OTHER BIDS ON ITEM 2 WERE $14.50 AND $14.85. BECAUSE THE BIDS IN THE ADDENDUM OF CHROMCRAFT CORPORATION WAS SO FAR OUT OF LINE WITH THE OTHER TWO BIDS. THE CORPORATION WAS REQUESTED TO VERIFY ITS BID. THE BIDDER ATTRIBUTED ITS BID OF $7.30 TO A MISTAKE IN THAT ITEM 2 IN THE ADDENDUM ERRONEOUSLY WAS THOUGHT TO BE ITEM 3 AND EXPLAINED THAT ITEM 3 IN THE ORIGINAL BID WAS AMENDED TO CONFORM WITH THE ADDENDUM BID.

B-128357, JUL. 11, 1956

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

YOUR LETTER DATED JUNE 21, 1956, WITH ENCLOSURES REQUESTS A DECISION RELATIVE TO AN ERROR CHROMCRAFT CORPORATION ALLEGES IT MADE IN ITS OFFER TO SUPPLY "EASY ARM CHAIRS.'

INVITATION TO BID M-79-56, DATED MAY 8, 1956, INSOFAR AS IS PERTINENT, PROVIDES:

CHART

"* * * CHAIR, EASY, ARM, CHROME PLATED TUBULAR STEEL FRAME: (FRAME ONLY), WOOD ARM RESTS. * *

* * * * * * * DELIVERY REQUIRED DELIVERY OFFERED QUANTITY UNIT UNIT PRICE

* * * * * * * 2. WILMINGTON, CALIFORNIA

JULY, 1956 60 EACH

* * * * * * * * * * CHAIR, SIDE, METAL, CHROME-PLATED, PADDED SEAT AND BACK, LEGS EQUIPPED WITH STEEL CUSHIONED GLIDES, IMITATION LEATHER UPHOLSTERY: * * *

* * * * * * * 3. HINES, ILLINOIS

JULY, 1956 144 EACH" ADDENDUM DATED MAY 9, 1956, INSOFAR AS IS PERTINENT, PROVIDES:

"* * * PROSPECTIVE BIDDERS ARE INFORMED THAT ITEM 2 OF THE ABOVE INVITATION IS HEREBY DELETED, AND THE FOLLOWING ITEM 2 SUBSTITUTED: DELIVERY REQUIRED DELIVERY OFFERED UNIT PRICE 2. WILMINGTON, CALIFORNIA

JULY, 1956 110 EACH

OPENING DATE AND ALL OTHER CONDITIONS REMAIN UNCHANGED.'

WHEN THE BIDS WERE OPENED ON MAY 29, 1956, IT WAS FOUND THAT THE ORIGINAL BID OF CHROMCRAFT CORPORATION OFFERED ITEM 2 AT $14.45 PER UNIT AND THAT ITEM 3 WAS AMENDED TO READ AS FOLLOWS:

"3. WILMINGTON, CALIFORNIA 110 EACH $7.30"

JULY 1956 144 EACH

THE ADDENDUM WHICH WAS EXECUTED ON MAY 24, 1956, THE SAME DATE THE ORIGINAL BID WAS SIGNED, OFFERED ITEM 2 AT $7.30 PER UNIT.

THE ABSTRACT OF BIDS, AFTER CONSIDERATION OF THE ADDENDI, SHOWED THAT THE OTHER BIDS ON ITEM 2 WERE $14.50 AND $14.85. BECAUSE THE BIDS IN THE ADDENDUM OF CHROMCRAFT CORPORATION WAS SO FAR OUT OF LINE WITH THE OTHER TWO BIDS, BY TELEGRAM DATED JUNE 5, 1956, THE CORPORATION WAS REQUESTED TO VERIFY ITS BID. BY LETTER DATED JUNE 6, 1956, THE BIDDER ATTRIBUTED ITS BID OF $7.30 TO A MISTAKE IN THAT ITEM 2 IN THE ADDENDUM ERRONEOUSLY WAS THOUGHT TO BE ITEM 3 AND EXPLAINED THAT ITEM 3 IN THE ORIGINAL BID WAS AMENDED TO CONFORM WITH THE ADDENDUM BID. ALSO, THE BIDDER ATTRIBUTED THE MISTAKE TO A TYPOGRAPHICAL ERROR ON THE PART OF ITS TYPIST. INASMUCH AS THE QUANTITY TO BE DELIVERED WAS ALL THAT WAS CHANGED BY THE ADDENDUM, THE CORPORATION ASKS TO BE ALLOWED TO CORRECT ITS $7.30 BID TO ITS ORIGINAL $14.45 BID. IN THAT REGARD, THE CORPORATION MAINTAINS THAT THE ORIGINAL BID WOULD REMAIN UNCHANGED, NOTWITHSTANDING THE ADDENDUM INCREASING BY FIFTY THE NUMBER OF UNITS TO BE SUPPLIED.

THE DISPARITY BETWEEN THE CHROMCRAFT CORPORATION BID IN THE ADDENDUM AND THE OTHER BIDS RECEIVED REASONABLY ESTABLISHES THAT THE CORPORATION MADE A BONA FIDE MISTAKE. THE $7.30 BID QUOTED UNDER ITEM 3 IN THE ORIGINAL BID AND MISTAKENLY QUOTED AS ITEM 2 IN THE ADDENDUM BID IS MORE IN LINE WITH THE ONLY OTHER ITEM 3 BID, WHICH WAS $7.25, AND, BY COMPARING THE ORIGINAL BID ON ITEM 2 WITH THE ADDENDUM BID, BOTH PROBABLY EXECUTED AT THE SAME TIME, IT IS APPARENT THAT THE BID PRICE IN THE ADDENDUM WAS AN OBVIOUS ERROR. IT APPEARS FURTHER THAT CHROMCRAFT CORPORATION IS ENTITLED TO HAVE ITS $7.30 ADDENDUM BID CORRECTED TO ITS $14.45 ORIGINAL BID. THE ORIGINAL BID IS IN LINE WITH THE BIDS FROM THE OTHER BIDDERS, AND IF CORRECTED TO THAT FIGURE, IT WOULD CONTINUE TO TO BE THE LOWEST BID. AS STATED ABOVE, THE CORPORATION CONTENDS THAT THE INCREASE IN QUANTITY REQUIRED BY THE ADDENDUM WOULD NOT HAVE CHANGED ITS PRICE OF $14.45 ORIGINALLY INTENDED. CERTAINLY, IT IS REASONABLE TO ASSUME THAT THE INCREASE IN QUANTITY WOULD NOT HAVE CAUSED THE CORPORATION TO HAVE INCREASED THE UNIT PRICE QUOTED FOR THE SMALLER QUANTITY. AS A RESULT, CORRECTION OF THE CORPORATION'S BID WOULD NOT AFFECT ADVERSELY THE RIGHTS OF THE OTHER BIDDERS.

ACCORDINGLY, SINCE THE PROCUREMENT OFFICER BELIEVED THE BID IN THE ADDENDUM WAS ERRONEOUS AND UPON HIS REQUEST FOR VERIFICATION PRIOR TO AWARD THE CORPORATION CONFIRMED HIS BELIEF AND SATISFACTORILY ESTABLISHED THE ERROR AND THE INTENDED PRICE, THE BID OF CHROMCRAFT CORPORATION SHOULD BE CORRECTED.