B-129544, OCT. 29, 1956

B-129544: Oct 29, 1956

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

PUBLIC PRINTER: REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 18. SHORTLY AFTER THE BIDS WERE OPENED AND BEFORE THEY WERE EXAMINED BY THE CONTRACTING OFFICER. THE FIRM ENCLOSED ITS ORIGINAL AND CORRECTED WORK SHEET AND STATED THAT BECAUSE IT MISPLACED A DECIMAL POINT IT COMPUTED THE FLAT CHARGES AT $1.45 PER THOUSAND WHEN THEY SHOULD HAVE BEEN COMPUTED AT $14.28 PER THOUSAND. THE ERROR WAS CARRIED OVER INTO THE NET AMOUNT. THE CONTRACTING OFFICER HAS STATED THAT HE BELIEVES THE BID IS ERRONEOUS. THAT HAD HE EXAMINED IT BEFORE RECEIVING THE NOTICE OF ERROR HE WOULD HAVE GIVEN THE BIDDER AN OPPORTUNITY TO VERIFY HIS BID. THERE APPEARS NO REASONABLE DOUBT THAT THE ALLEGED ERROR WAS MADE BY THE FIRM.

B-129544, OCT. 29, 1956

TO HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 18, 1956, WITH ENCLOSURES, REQUESTING A DECISION WHETHER RELIEF MAY BE GRANTED TO CONSOLIDATED BUSINESS SYSTEMS, INC., NEW BRUNSWICK, NEW JERSEY, FOR AN ERROR IN BID IT ALLEGED BEFORE AWARD.

IN RESPONSE TO A REQUEST FOR BIDS FOR THE PRODUCTION OF 3,500 SETS OF A 6 -PART DOUBLE STUB, SNAP-OUT STYLE FORM, CARBON INTERLEAVED,CONSOLIDATED BUSINESS SYSTEMS, INC., BID $81.79. THE OTHER FOUR BIDDERS QUOTED PRICES RANGING FROM $146 TO $350. SHORTLY AFTER THE BIDS WERE OPENED AND BEFORE THEY WERE EXAMINED BY THE CONTRACTING OFFICER, CONSOLIDATED'S REPRESENTATIVE WHO HAD ATTENDED THE BID OPENING TELEPHONED AND ADVISED THAT THE FIRM HAD MADE AN ERROR IN ITS BID. WITH A LETTER DATED SEPTEMBER 28, 1956, THE FIRM ENCLOSED ITS ORIGINAL AND CORRECTED WORK SHEET AND STATED THAT BECAUSE IT MISPLACED A DECIMAL POINT IT COMPUTED THE FLAT CHARGES AT $1.45 PER THOUSAND WHEN THEY SHOULD HAVE BEEN COMPUTED AT $14.28 PER THOUSAND. THE FIRM SEEKS TO INCREASE ITS BID OF $23.37 PER THOUSAND BY $12.83 ($14.28 MINUS $1.45) PER THOUSAND, WHICH WOULD RESULT IN A PRICE OF $36.20 PER THOUSAND, OR A TOTAL PRICE OF $126.70 INSTEAD OF $81.79 FOR 3,500 SETS.

A REVIEW OF THE WORK SHEETS SUBMITTED BY THE FIRM INDICATES THAT TO DETERMINE THE PRICE PER THOUSAND IT DIVIDED $50, THE PRICE OF THE PAPER, BY 35 THOUSAND, INSTEAD OF BY 3.5 THOUSAND, THE NUMBER OF SETS REQUIRED. IN EXTENDING THE PRICE PER THOUSAND TO THE PRICE FOR 3,500, THE ERROR WAS CARRIED OVER INTO THE NET AMOUNT.

THE CONTRACTING OFFICER HAS STATED THAT HE BELIEVES THE BID IS ERRONEOUS, AND THAT HAD HE EXAMINED IT BEFORE RECEIVING THE NOTICE OF ERROR HE WOULD HAVE GIVEN THE BIDDER AN OPPORTUNITY TO VERIFY HIS BID.

ON THE BASIS OF THE FACTS OF RECORD, THERE APPEARS NO REASONABLE DOUBT THAT THE ALLEGED ERROR WAS MADE BY THE FIRM. ACCORDINGLY, SINCE THE CONTRACTING OFFICER WAS NOTIFIED OF THE ERROR SHORTLY AFTER THE BIDS WERE OPENED AND THE ERROR WAS EXPLAINED AND CONFIRMED PRIOR TO AWARD, AND THE EVIDENCE IN SUPPORT OF THE BIDDER'S INTENDED PRICE IS FULL AND CONVINCING, THE PRICE IN QUESTION MAY BE INCREASED FROM $81.79 TO $126.70, WHICH IS LESS THAN THE NEXT LOW BID RECEIVED.

THE COPY OF THE SPECIFICATIONS AND THE PURCHASE ORDER ARE RETURNED HEREWITH.