B-129751, NOV. 16, 1956

B-129751, NOV. 16, 1956

TO THE HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 8, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE CENTURY PRINTING HOUSE ALLEGES IT MADE IN ITS BID OPENED ON OCTOBER 25, 1956.

THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS FOR THE PRINTING AND BINDING OF A PUBLICATION ENTITLED "ANDREWS AMBASSADOR," A 4-PAGE NEWSPAPER OF APPROXIMATELY 3,500 COPIES TO BE PUBLISHED WEEKLY FOR THE PERIOD BEGINNING NOVEMBER 1, 1956, AND ENDING OCTOBER 31, 1957. THE VARIOUS OPERATIONS REQUIRED TO PRODUCE THE NEWSPAPER ARE DESCRIBED IN A SCHEDULE UNDER ITEMS I TO IV, INCLUSIVE, AND PROSPECTIVE BIDDERS WERE REQUIRED TO QUOTE A UNIT PRICE FOR EACH OPERATION BASED ON PRODUCTION OF ONE THOUSAND COPIES AND EACH ADDITIONAL ONE THOUSAND COPIES. THE CENTURY PRINTING HOUSE SUBMITTED A BID DATED OCTOBER 23, 1956, OFFERING TO PERFORM THE VARIOUS OPERATIONS NECESSARY FOR THE PRODUCTION OF THE NEWSPAPER AT THE UNIT PRICES SPECIFIED THEREIN. UNDER ITEM IV, THE COMPANY QUOTED A PRICE OF $6 FOR PRINTING AND BINDING THE FIRST THOUSAND COPIES AND A PRICE OF $2.75 FOR EACH ADDITIONAL ONE THOUSAND COPIES.

IN YOUR LETTER IT IS STATED THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER, HE NOTED THAT THE PRICES QUOTED BY THE CENTURY PRINTING HOUSE FOR PRINTING AND BINDING THE FIRST THOUSAND COPIES AND ADDITIONAL ONE THOUSAND COPIES UNDER ITEM IV WERE POSSIBLY IN ERROR BECAUSE THESE PRICES WERE SO MUCH LOWER THAN THOSE SPECIFIED IN THE ONLY OTHER BID RECEIVED AND THE GOVERNMENT PRINTING OFFICE ESTIMATE. UPON BEING REQUESTED TO REVIEW THE SPECIFICATIONS AND TO CONFIRM ITS BID PRICES, THE COMPANY ADVISED BY TELEPHONE THAT IN COMPUTING ITS BID PRICES FOR ITEM IV, IT HAD FAILED TO INCLUDE AN AMOUNT FOR IMPOSITION, RUNNING AND MAKE READY.

IN A CONFIRMING LETTER DATED OCTOBER 31, 1956, THE COMPANY REQUESTED THAT THE UNIT PRICES FOR ITEM IV BE CHANGED TO READ $28.50 FOR THE FIRST ONE THOUSAND COPIES AND $17.75 FOR EACH ADDITIONAL THOUSAND COPIES. BY LETTER DATED NOVEMBER 2, 1956, THE COMPANY CHANGED ITS PRICE FOR THE ADDITIONAL THOUSANDS FROM $17.75 TO $10.50. WITH ITS LETTER THE COMPANY SUBMITTED ITS ORIGINAL ESTIMATE SHEET WHICH SHOWS THAT THE PRICES QUOTED FOR ITEM IV COVER ONLY THE BINDING WORK.

THE RECORD INDICATES THAT UNDER ITEM IV, THE ONLY OTHER BIDDER QUOTED A PRICE OF $63.50 FOR THE FIRST THOUSAND COPIES AND A PRICE OF $12.50 FOR ADDITIONAL THOUSANDS AND THAT THE GOVERNMENT PRINTING OFFICE'S ESTIMATE FOR THAT ITEM WAS $41.54 FOR THE FIRST THOUSAND COPIES AND $9.56 FOR ADDITIONAL THOUSANDS. THUS, THE BID PRICES OF $6 FOR THE FIRST THOUSAND AND $2.75 FOR ADDITIONAL THOUSANDS QUOTED BY THE CENTURY PRINTING HOUSE ARE COMPLETELY OUT OF LINE WITH THE PRICES QUOTED BY THE OTHER BIDDER AND THE PRICES ESTIMATED BY THE GOVERNMENT.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO ROOM FOR DOUBT THAT THE COMPANY, IN COMPUTING ITS BID PRICES FOR ITEM IV, FAILED TO INCLUDE AN AMOUNT THEREIN TO COVER THE ITEMS OF IMPOSITION, RUNNING AND MAKE READY. ACCORDINGLY, SINCE IT WAS BELIEVED THAT THE BID OF THE CENTURY PRINTING HOUSE WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED PRIOR TO AWARD, THE BID OF THE COMPANY MAY BE DISREGARDED IN MAKING THE AWARD.

THE PAPERS, WITH THE EXCEPTION OF THE COMPANY'S LETTERS OF OCTOBER 31 AND NOVEMBER 2, 1956, AND ..END :