B-128366, JUN. 28, 1956

B-128366, JUN. 28, 1956

TO HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 22, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER A BID OF THE WALLACE PRESS, OPENED ON JUNE 13, 1956, MAY BE DISREGARDED BY REASON OF ERROR ALLEGED BY THE BIDDER.

ON JUNE 6, 1956, THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS UNDER JACKET NO. 386211, FOR FURNISHING 2,930,000 FOLDERS, TYPE PRINTING FACE AND BACK, TRIMMED TO 8 BY 21 INCHES AND FOLDED TO 8 BY 11 INCHES. THE FOLDERS WERE TO BE PRINTED ON WHITE 25 PERCENT RAG BOND, SUB. 24-26, TO BE FURNISHED BY THE CONTRACTOR. IN RESPONSE THE WALLACE PRESS SUBMITTED A BID DATED JUNE 12, 1956, OFFERING TO FURNISH THE FOLDERS FOR A PRICE OF $12,664. THE FIVE OTHER BIDS ON THE FOLDERS RANGED FROM $14,943 TO $19,980.75.

BY TELEGRAM DATED JUNE 14, 1956, THE WALLACE PRESS ADVISED THAT AN ERROR WAS MADE IN THE EXTENSION OF THE PAPER COST AND THAT ITS BID PRICE FOR THE FOLDERS SHOULD HAVE READ $13,502. IN A CONFIRMING LETTER DATED JUNE 15, 1956, THE COMPANY STATED THAT IN COMPUTING THE PRICE FOR 33,000 POUNDS OF PAPER STOCK AT $26 PER CWT., THE EXTENSION WAS SHOWN ON ITS ESTIMATE SHEET AS $7,800 RATHER THAN $8,580--- A DIFFERENCE OF $780; AND THAT TO SUCH DIFFERENCE THERE SHOULD BE ADDED THE AMOUNT OF $58 (APPROXIMATELY 7 1/2 PERCENT OF $780) TO COVER THE ITEM OF PROFIT, MAKING THE TOTAL AMOUNT OF THE ERROR $838. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED ITS ORIGINAL ESTIMATE SHEET.

ON THE RECORD, THERE IS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED PRIOR TO AWARD, THE BID OF THE WALLACE PRESS MAY BE DISREGARDED IN MAKING THE AWARD.

THE CONTRACTOR'S LETTER OF JUNE 15, 1956, AND ITS ESTIMATE SHEET ARE BEING RETAINED. THE OTHER PAPERS ARE RETURNED.