B-131285, APR. 5, 1957

B-131285: Apr 5, 1957

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER DATED MARCH 29. MUELLER AND COMPANY APPEARS TO HAVE BEEN AS INTENDED AT THE TIME IT WAS SUBMITTED. THE COMPANY CONCLUDED THAT ITS BID PRICE WAS LESS THAN THE MANUFACTURER'S SUGGESTED SELLING PRICE BECAUSE IT OFFERED A NORMAL PROMPT PAYMENT DISCOUNT WHICH OF COURSE MIGHT NEVER BE DEDUCTED IN MAKING PAYMENT.

B-131285, APR. 5, 1957

TO THE HONORABLE H. V. HIGLEY, ADMINISTRATOR, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER DATED MARCH 29, 1957, WITH ENCLOSURES, REQUESTING A DECISION WHETHER V. MUELLER AND COMPANY, CHICAGO, ILLINOIS, MAY WITHDRAW ITS BID AFTER THE OPENING OF BIDS.

INVITATION 57-33, DATED JANUARY 21, 1957, SOLICITED BIDS FOR EIGHT DIFFERENT UNITS OF MEDICAL RESEARCH EQUIPMENT. IN THE SUBMISSION OF ITS BID, V. MUELLER AND COMPANY OFFERED A DISCOUNT OF 2 PERCENT FOR PAYMENT WITHIN 30 DAYS. AFTER THE OPENING OF BIDS, THE COMPANY REQUESTED PERMISSION TO WITHDRAW ITS BID ON ITEMS 3 AND 6 FOR THE REASON THAT THE MANUFACTURER OF THOSE PARTICULAR ITEMS DOES NOT PERMIT ITTO ALLOW THE "2 PERCENT DISCOUNT" WHICH IT ACCORDED THE GOVERNMENT.

THE BID OF V. MUELLER AND COMPANY APPEARS TO HAVE BEEN AS INTENDED AT THE TIME IT WAS SUBMITTED. THERE HAS NOT BEEN FURNISHED ANY EVIDENCE OF THE ALLEGED MISTAKE. APPARENTLY, AFTER THE OPENING OF THE BID BY THE GOVERNMENT, THE COMPANY CONCLUDED THAT ITS BID PRICE WAS LESS THAN THE MANUFACTURER'S SUGGESTED SELLING PRICE BECAUSE IT OFFERED A NORMAL PROMPT PAYMENT DISCOUNT WHICH OF COURSE MIGHT NEVER BE DEDUCTED IN MAKING PAYMENT.

ACCORDINGLY, ON THE PRESENT RECORD THERE APPEARS NO LEGAL BASIS FOR DISREGARDING THE BID.