B-130616, FEB. 14, 1957

B-130616: Feb 14, 1957

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 OF FEBRUARY 6. WAS AWARDED. YOU STATE THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER IT WAS NOTED THAT THE BID OF THE ALL CRAFT CONTAINER CORPORATION ON ITEMS GP- 229. GP-232 WAS PROBABLY IN ERROR BECAUSE THE PRICES QUOTED ON THESE ITEMS WERE OUT OF LINE WITH THE PRICES QUOTED BY THE OTHER BIDDERS. THAT THE CORPORATION WAS. GP232 AND GP233 ARE CONSIDERABLY BELOW THE COST TO PRODUCE THIS MERCHANDISE. "WE FEEL THAT IT IS APPARENT THAT WE HAD NOT INTENDED THESE PRICES TO APPLY TO THE SOLID FIBRE MATERIAL FOR THE FOLLOWING REASONS: 1. 1956 (COPY OF WHICH IS ENCLOSED) CALLING TO YOUR ATTENTION ON A PREVIOUS ERROR THAT WE ARE NOT IN THE BUSINESS OF SUPPLYING SOLID FIBRE MATERIAL. 2.

B-130616, FEB. 14, 1957

TO THE HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 6, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE ALL CRAFT CONTAINER CORPORATION ALLEGES IT MADE IN ITS BID ON WHICH CONTRACT NO. GP-21552-A, DATED JUNE 17, 1956, WAS AWARDED.

THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS--- TO BE OPENED JANUARY 7, 1957--- FOR FURNISHING ESTIMATED QUANTITIES OF NINETEEN DIFFERENT KINDS AND SIZES OF CONTAINERS, SOME OF CORRUGATED AND SOME OF SOLID FIBERBOARD, DURING A 6-MONTH PERIOD BEGINNING FEBRUARY 1, 1957. IN RESPONSE THE ALL CRAFT CONTAINER CORPORATION SUBMITTED A BID DATED DECEMBER 26, 1956, OFFERING TO FURNISH, AMONG OTHER ITEMS, SOLID FIBER CONTAINERS UNDER ITEMS GP-229, GP-231, AND GP-232 AT PRICES OF $133.50, $136.50, AND $180 PER THOUSAND, RESPECTIVELY. THE LIST OF BIDS IN YOUR LETTER SHOWS THAT THE UNIT PRICES QUOTED BY THE SIX OTHER BIDDERS ON ITEM GP-229 RANGED FROM $166.20 TO $248.10; THAT FIVE OTHER AND THAT ON ITEM GP-232, THESE FIVE BIDDERS QUOTED UNIT PRICES RANGING FROM $222.50 TO $339.20.

YOU STATE THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER IT WAS NOTED THAT THE BID OF THE ALL CRAFT CONTAINER CORPORATION ON ITEMS GP- 229, GP-231, AND GP-232 WAS PROBABLY IN ERROR BECAUSE THE PRICES QUOTED ON THESE ITEMS WERE OUT OF LINE WITH THE PRICES QUOTED BY THE OTHER BIDDERS; THAT HE DECIDED, HOWEVER, NOT TO REQUEST THE CORPORATION TO REVIEW THE SPECIFICATIONS AND CONFIRM ITS BID PRICES; AND THAT THE CORPORATION WAS, THEREFORE, NOTIFIED THAT IT WOULD RECEIVE THE AWARD ON ITEMS GP-229, GP- 231, AND GP-232.

BY LETTER DATED JANUARY 25, 1957, THE ALL CRAFT CONTAINER CORPORATION ADVISED AS FOLLOWS:

"IN REFERENCE TO OUR TELEPHONE CONVERSATION OF THIS MORNING, MAY I CALL YOUR ATTENTION TO OUR BID NO. 6772 DATED DECEMBER 26, 1956.

"UNFORTUNATELY, OUR COMPANY ERR-D IN THE PREPARATION OF THIS QUOTATION, AND QUOTED ON CERTAIN OF YOUR ITEMS AS 200 POUNDS TEST CORRUGATED FIBRE CONTAINERS RATHER THAN THE 275 LB. SOLID FIBRE CONTAINERS WHICH YOUR SPECIFICATIONS CALLED FOR. AS A RESULT, THE PRICES WHICH WE SUBMITTED ON YOUR ITEMS GP229, GP230, GP231, GP232 AND GP233 ARE CONSIDERABLY BELOW THE COST TO PRODUCE THIS MERCHANDISE.

"WE FEEL THAT IT IS APPARENT THAT WE HAD NOT INTENDED THESE PRICES TO APPLY TO THE SOLID FIBRE MATERIAL FOR THE FOLLOWING REASONS:

1. WE HAD SUBMITTED TO YOU A LETTER DATED JUNE 15, 1956 (COPY OF WHICH IS ENCLOSED) CALLING TO YOUR ATTENTION ON A PREVIOUS ERROR THAT WE ARE NOT IN THE BUSINESS OF SUPPLYING SOLID FIBRE MATERIAL.

2. ON OUR BID NUMBER 6772, WE HAD SUBMITTED IDENTICAL PRICES ON ITEMS SUCH AS GP222 AND GP232 WHICH WHILE THE SAME SIZE, SHOULD NORMALLY REFLECT DIFFERENT COSTS BETWEEN A 200 LB. TEST CORRUGATED ITEM AND A 275 LB. SOLID FIBRE ITEM.

"WE ARE, THEREFORE, HEREIN REQUESTING YOUR INDULGENCE IN ALLOWING US TO WITHDRAW THE SUBJECT BID AS THE INSISTENCE ON YOUR PART THAT WE MAINTAIN OUR BID WOULD PLACE AN EXTREMELY SEVERE AND COSTLY HARDSHIP TO THIS COMPANY.

"MAY WE THANK YOU FOR YOUR CONSIDERATION ON THIS REQUEST.'

WITH ITS LETTER THE CORPORATION SUBMITTED A COPY OF THE REFERRED-TO LETTER OF JANUARY 15, 1956, TO THE DIRECTOR OF PURCHASES, IN WHICH IT ADVISED THAT AN ERROR HAD BEEN MADE IN QUOTING ON ITEM 1 OF ITS BID DATED JUNE 4, 1956, IN THAT THE PRICE FOR THAT ITEM WAS BASED ON FURNISHING CORRUGATED FIBERBOARD CONTAINERS AND NOT SOLID FIBER CONTAINERS AS REQUIRED. IN REGARD TO THE ERROR ALLEGED BY THE CORPORATION IN ITS LETTER OF JUNE 15, 1956, THE RECORDS OF OUR OFFICE DISCLOSE THAT ON JUNE 22, 1956, YOU REQUESTED A DECISION AS TO WHETHER RELIEF COULD BE GRANTED TO THE CORPORATION AND THAT BY DECISION OF JUNE 29, 1956, B-128369, YOU WERE ADVISED THAT THE BID OF THE CORPORATION AS TO ITEM 1 COULD BE DISREGARDED IN MAKING THE AWARD.

THE RECORD INDICATES THAT HAD THE CONTRACTING OFFICER--- WHO ADMITTEDLY NOTED THE POSSIBILITY OF ERROR ON THE FACE OF THE BID--- PROPERLY EXAMINED HIS RECORDS HE WOULD HAVE DISCOVERED THAT THE CORPORATION HAD PREVIOUSLY MADE THE SAME TYPE OF ERROR, AS ALLEGED IN THE PRESENT CASE, IN ITS BID OF JUNE 4, 1956; THAT THE CORPORATION DID NOT MANUFACTURE SOLID FIBER CONTAINERS, WHICH WERE REQUIRED UNDER ITEMS GP-229, GP-231, AND GP-232; AND THAT IN THE LIGHT OF SUCH INFORMATION HE SHOULD HAVE REQUESTED THE CORPORATION TO REVIEW THE SPECIFICATIONS AND CONFIRM ITS BID PRICES BEFORE MAKING THE AWARD. IT IS REPORTED THAT NO PURCHASE ORDERS FOR THE ITEMS IN QUESTION HAVE BEEN PLACED WITH THE ALL CRAFT CONTAINER CORPORATION. THE CONTRACT INVOLVED MAY ACCORDINGLY BE CANCELLED WITHOUT LIABILITY TO THE CORPORATION.

THE PAPERS, WITH THE EXCEPTION OF THE CORPORATION'S LETTERS OF JUNE 15, 1956, AND JANUARY 25, 1957, ARE RETURNED.