B-130688, FEB. 19, 1957

B-130688: Feb 19, 1957

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PUBLIC PRINTER: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 12. THE SPECIFICATIONS PROVIDE THAT NO AWARD WILL BE MADE FOR LESS THAN 10. IT IS REPORTED THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER HE NOTED THAT THE BID OF THE REIN COMPANY WAS POSSIBLY IN ERROR BECAUSE IT WAS CONSIDERABLY LOWER THAN THE NEXT LOWEST BID IN THE AMOUNT OF $44. THE COMPANY WAS REQUESTED BY TELEGRAM TO REVIEW THE SPECIFICATIONS AND CONFIRM ITS BID PRICE. 000 WAS INTENDED AS THE TOTAL PRICE FOR THE MINIMUM QUANTITY OF 100. 000 WAS BASED ON FURNISHING 100. THERE IS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID. SINCE IT WAS BELIEVED THAT THE BID OF THE REIN COMPANY WAS ERRONEOUS.

B-130688, FEB. 19, 1957

TO HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 12, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE REIN COMPANY, HOUSTON, TEXAS, ALLEGES IT MADE IN ITS BID OPENED ON FEBRUARY 4, 1957.

THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS UNDER JACKET NO. 412028 FOR THE PRODUCTION OF 295,000 PADS OF A ONE PART SINGLE-STUB SNAPOUT STYLE FORM, PADDED 100 PARTS AND 100 CARBONS TO A PAD (29,500,000 SETS TOTAL QUANTITY REQUIRED). THE SPECIFICATIONS PROVIDE THAT NO AWARD WILL BE MADE FOR LESS THAN 10,000,000 SETS (100,000 PADS); AND THAT PRICES SHOULD BE QUOTED FOR 100,000 PADS AND FOR EACH ADDITIONAL 1,000 PADS TO BE MANUFACTURED AND SHIPPED IN ACCORDANCE WITH THE SPECIFICATIONS. RESPONSE THE REIN COMPANY SUBMITTED A BID DATED JANUARY 25, 1957, OFFERING TO FURNISH 295,000 PADS FOR THE LUMP SUM OF $33,000 AND TO FURNISH ANY ADDITIONAL PADS AT A PRICE OF $330 PER THOUSAND. THE LIST OF BIDS IN YOUR LETTER SHOWS THAT THE FIVE OTHER BIDS FOR FURNISHING THE ENTIRE QUANTITY OF 295,000 PADS RANGED FROM $44,545 TO $88,500. YOU STATE THAT FOUR OTHER BIDDERS DID NOT BID ON THE ENTIRE QUANTITY OF 295,000 PADS BUT THAT, BASED ON THE UNIT PRICES SHOWN IN THEIR BIDS, THEIR PRICES FOR THE ENTIRE QUANTITY WOULD RANGE FROM $50,150 TO $76,995.

IT IS REPORTED THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER HE NOTED THAT THE BID OF THE REIN COMPANY WAS POSSIBLY IN ERROR BECAUSE IT WAS CONSIDERABLY LOWER THAN THE NEXT LOWEST BID IN THE AMOUNT OF $44,545; AND THAT ON FEBRUARY 5, 1957 (THE DAY AFTER BID OPENING), THE COMPANY WAS REQUESTED BY TELEGRAM TO REVIEW THE SPECIFICATIONS AND CONFIRM ITS BID PRICE.

BY TELEGRAM DATED FEBRUARY 6, 1957, THE COMPANY ADVISED THAT IT HAD QUOTED THE WRONG QUANTITY FOR THE 100,000 PRICE. IN A CONFIRMING LETTER DATED FEBRUARY 6, 1957, THE COMPANY STATED THAT THE PRICE OF $33,000 WAS INTENDED AS THE TOTAL PRICE FOR THE MINIMUM QUANTITY OF 100,000 PADS RATHER THAN AS THE TOTAL PRICE FOR THE FULL QUANTITY OF 295,000 PADS, AND THAT IT COULD NOT HANDLE MORE THAN THE MINIMUM QUANTITY OF 100,000 PADS. WITH THE LETTER THE COMPANY SUBMITTED ITS ORIGINAL ESTIMATE SHEET WHICH SHOWS THAT THE PRICE OF $33,000 WAS BASED ON FURNISHING 100,000 PADS AT $330 PER THOUSAND. ON THE BASIS OF A UNIT PRICE OF $330 PER THOUSAND, THE TOTAL PRICE FOR FURNISHING 295,000 PADS WOULD BE $97,350.

ON THE RECORD, THERE IS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE IT WAS BELIEVED THAT THE BID OF THE REIN COMPANY WAS ERRONEOUS, AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED BY THE BIDDER PRIOR TO AWARD, THE BID OF THE COMPANY MAY BE DISREGARDED IN MAKING THE AWARD.

THE SPECIFICATION SHEET AND COPIES OF ALL THE BIDS ARE RETURNED. THE OTHER PAPERS IN THE CASE ARE BEING RETAINED.