B-129546, OCT. 29, 1956

B-129546: Oct 29, 1956

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PUBLIC PRINTER: REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 18. SHOULD HAVE ITS BID DISREGARDED BECAUSE OF AN ERROR IT ALLEGED UPON THE CONTRACTING OFFICER'S REQUEST FOR VERIFICATION PRIOR TO AWARD. THE CONTRACTING OFFICER IN HIS EXAMINATION OF BIDS NOTED THAT THE ADDITIONAL THOUSAND RATE QUOTED WAS VERY LOW WHEN COMPARED WITH THE OTHER SEVEN BIDS WHICH RANGED IN PRICE FROM $1.50 TO $1.95 PER ADDITIONAL THOUSAND. THE FIRM WAS REQUESTED TO REVIEW THE SPECIFICATIONS AND CONFIRM THE BID PRICE. PER THOUSAND WAS THE CORRECT PRICE. 000 COPIES. * * * THE FIGURE OF .3973 IS THE PRO RATA RATE PER THOUSAND FOR PRESS RUNNING. 000 COPIES WHICH WAS THE BASE QUANTITY * * *.'. WHEN A CONTRACTING OFFICER BELIEVES A BID IS ERRONEOUS AND UPON HIS REQUEST FOR VERIFICATION PRIOR TO AWARD THE BIDDER PROMPTLY PRESENTS CONVINCING EVIDENCE WHICH SHOWS THAT A BONA FIDE ERROR WAS MADE.

B-129546, 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 THE CUNEO EASTERN PRESS, INC., PHILADELPHIA, PENNSYLVANIA, SHOULD HAVE ITS BID DISREGARDED BECAUSE OF AN ERROR IT ALLEGED UPON THE CONTRACTING OFFICER'S REQUEST FOR VERIFICATION PRIOR TO AWARD.

IN RESPONSE TO AN ADVERTISED REQUEST FOR PRICES, THE CUNEO EASTERN PRESS, INC., BID $5,180 FOR THE PRODUCTION OF 3,000,000 10 1/2 BY 8FORMS PRINTED ON WHITE WRITING PAPER AND $1.06 FOR EACH ADDITIONAL THOUSAND PRINTED UP TO 9,400,000. THE CONTRACTING OFFICER IN HIS EXAMINATION OF BIDS NOTED THAT THE ADDITIONAL THOUSAND RATE QUOTED WAS VERY LOW WHEN COMPARED WITH THE OTHER SEVEN BIDS WHICH RANGED IN PRICE FROM $1.50 TO $1.95 PER ADDITIONAL THOUSAND. BY TELEGRAM DATED OCTOBER 10, 1956, THE FIRM WAS REQUESTED TO REVIEW THE SPECIFICATIONS AND CONFIRM THE BID PRICE. LETTER DATED OCTOBER 10, 1956, THE FIRM ALLEGED A TYPOGRAPHICAL ERROR IN ITS BID IN THAT $1.66, INSTEAD OF $1.06, PER THOUSAND WAS THE CORRECT PRICE, AND SUBSTANTIATED SUCH ALLEGATION BY ITS SALES ESTIMATE SHEET. YOUR LETTER ADEQUATELY DESCRIBES THE SALES ESTIMATE SHEET AS FOLLOWS:

"* * * THIS ESTIMATE SHEET SHOWS A TOTAL OF $15,802.45 FOR 9,400,000 COPIES. * * * THE FIGURE OF .3973 IS THE PRO RATA RATE PER THOUSAND FOR PRESS RUNNING, INK, CUTTING AND HANDLING, PLUS THE MARK UP AND PAPER COSTS WHICH TOTAL $1.66.

"THE REVERSE SIDE OF THE ESTIMATE SHEET SHOWS HOW THE BIDDER ARRIVED AT THE PRICE FOR THE FIRST 3,000,000 COPIES AND HOW HE VERIFIED THE TOTAL COST BY MULTIPLYING $1.66 TIMES 6,400,000 WHICH RESULTED IN A TOTAL OF $10,624.00. THIS AMOUNT WHEN SUBTRACTED FROM THE TOTAL COST OF 9,400,000 COPIES RESULTS IN A PRICE OF $5,178.45 FOR 3,000,000 COPIES WHICH WAS THE BASE QUANTITY * * *.'

THE FIRM REQUESTS THAT ITS BID BE CORRECTED TO REFLECT A PRICE OF $1.66 FOR EACH ADDITIONAL THOUSAND PRINTED IN EXCESS OF 3,000,000.

WHEN A CONTRACTING OFFICER BELIEVES A BID IS ERRONEOUS AND UPON HIS REQUEST FOR VERIFICATION PRIOR TO AWARD THE BIDDER PROMPTLY PRESENTS CONVINCING EVIDENCE WHICH SHOWS THAT A BONA FIDE ERROR WAS MADE, OF WHAT IT CONSISTS, HOW IT OCCURRED AND WHAT THE PRICE WOULD HAVE BEEN EXCEPT FOR THE ERROR, THE INTERESTS OF THE UNITED STATES REQUIRE THAT THE BID BE CONSIDERED AS CORRECTED SO THAT IF THE CORRECTED BID IS THE LOWEST RESPONSIVE BID RECEIVED THE GOVERNMENT MAY HAVE THE BENEFIT OF IT.

SINCE THE CONTRACTING OFFICER BELIEVED THE BID WAS ERRONEOUS AND UPON HIS REQUEST FOR VERIFICATION PRIOR TO AWARD HIS BELIEF WAS CONFIRMED AND THE INTENDED PRICE ESTABLISHED, THE BID SHOULD BE CORRECTED AND CONSIDERED ALONG WITH THE OTHER BIDS.

THE BIDS, COPY OF THE SPECIFICATIONS AND TELEGRAM DATED OCTOBER 10 ARE RETURNED HEREWITH.