B-132672, JUL. 30, 1957

B-132672: Jul 30, 1957

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF JULY 22. ALLEGES WAS MADE IN ITS BID OPENED ON JUNE 26. AS FOLLOWS: "AS SUSPECTED BY YOU THESE PRICES ARE DEFINITELY IN ERROR. "ACTUALLY THIS STOCK NUMBER IS AN ADAPTATION OF OUR STANDARD CATALOG NUMBER B400 PRICED AT $498.00 WITH THE ADDITION OF CATALOG NUMBER B566 PRICED AT $57.00 AND CATALOG NUMBER 501 PRICED AT $25.00. "THIS WOULD BE MORE IN LINE WITH ITEM 1 AND 2 STOCK NUMBER 6166500 WHICH IS SOMEWHAT SIMILAR IN SIZE AND IN MAJOR COMPONENTS. SINCE THE COMPANY IS UNABLE TO EXPLAIN THE BASIS OF THE ERROR. IT CANNOT BE SAID THAT ITS INTENDED PRICE AT THE TIME OF BIDDING IS CONCLUSIVELY ESTABLISHED SO AS TO WARRANT A DEPARTURE FROM THE BASIC RULE THAT BIDS MAY NOT BE CHANGED OR CORRECTED AFTER THE BIDS HAVE BEEN OPENED.

B-132672, JUL. 30, 1957

TO MR. GLENN C. PARMELEE, DIRECTOR, SUPPLY SERVICE, DEPARTMENT OF MEDICINE AND SURGERY, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF JULY 22, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH BAR-RAY PRODUCTS, INC., BROOKLYN, NEW YORK, ALLEGES WAS MADE IN ITS BID OPENED ON JUNE 26, 1957.

BY INVITATION NO. A-613-57, THE VETERANS ADMINISTRATION, PROCUREMENT DIVISION, SUPPLY SERVICE, WASHINGTON, D.C., REQUESTED BIDS FOR FURNISHING, AMONG OTHER ITEMS, SPECIFIED QUANTITIES OF REFRIGERATED RADIOGRAPHIC DEVELOPING TANKS TO BE DELIVERED TO SOMERVILLE, NEW JERSEY, ITEM 3, AND HINES, ILLINOIS, ITEM 4. IN RESPONSE BAR-RAY PRODUCTS, INC., SUBMITTED A BID DATED JUNE 24, 1957, OFFERING TO FURNISH, AMONG OTHERS, THE DEVELOPING TANKS UNDER ITEMS 3 AND 4 AT A PRICE OF $240 EACH. THE LIST OF BIDS IN YOUR LETTER SHOWS THAT ONE OF THE TWO OTHER BIDDERS ON ITEMS 3 AND 4 QUOTED A PRICE OF $800 EACH AND THAT THE OTHER BIDDER QUOTED A PRICE OF $845 EACH ON BOTH OF THESE ITEMS.

UPON BEING REQUESTED BY LETTER DATED JUNE 28, 1957, TO VERIFY ITS BID ON ITEMS 3 AND 4, THE CORPORATION ADVISED BY LETTER DATED JULY 2, 1957, AS FOLLOWS:

"AS SUSPECTED BY YOU THESE PRICES ARE DEFINITELY IN ERROR, AN ERROR WHICH GOES UNEXPLAINED IN THAT THE WRITER'S COPY OF THE BID PAPERS, HAND WRITTEN IN PENCIL CARRY A PRICE OF $240.00 FOR ITEMS 3 AND 4 SHOWN AS STOCK NUMBER 6167375.

"ACTUALLY THIS STOCK NUMBER IS AN ADAPTATION OF OUR STANDARD CATALOG NUMBER B400 PRICED AT $498.00 WITH THE ADDITION OF CATALOG NUMBER B566 PRICED AT $57.00 AND CATALOG NUMBER 501 PRICED AT $25.00.

"THE ADDITION OF A TYPE 316 STAINLESS STEEL EXTERIOR HOUSING AND ALL OF THE NECESSARY PLUMBING TO INTER-CONNECT THE REFRIGERATION UNIT THE POSITIVE TEMPERATURE CONTROL VALVE AND A DIAL THERMOMETER AMOUNTS TO ANOTHER $150.00 WHICH WOULD BRING THE TOTAL OF $730.00.

"THIS WOULD BE MORE IN LINE WITH ITEM 1 AND 2 STOCK NUMBER 6166500 WHICH IS SOMEWHAT SIMILAR IN SIZE AND IN MAJOR COMPONENTS. WE ENCLOSE A COPY OF OUR CURRENT CATALOG IN WHICH THE ABOVE MENTIONED CATALOG NUMBERS APPEAR SO AS TO SUBSTANTIATE THE PRICES.

"IF ACCEPTABLE TO YOU WE WOULD LIKE TO ALTER OUR PRICES TO THE FOLLOWING:

ITEM 3--- $730.00 EACH

ITEM 4--- $742.00 EACH"

ON THE RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT BAR-RAY PRODUCTS, INC., MADE AN ERROR IN ITS BID, AS ALLEGED. HOWEVER, SINCE THE COMPANY IS UNABLE TO EXPLAIN THE BASIS OF THE ERROR, IT CANNOT BE SAID THAT ITS INTENDED PRICE AT THE TIME OF BIDDING IS CONCLUSIVELY ESTABLISHED SO AS TO WARRANT A DEPARTURE FROM THE BASIC RULE THAT BIDS MAY NOT BE CHANGED OR CORRECTED AFTER THE BIDS HAVE BEEN OPENED. SEE 17 COMP. GEN. 575.

ACCORDINGLY, THE BID OF BAR-RAY PRODUCTS, INC., AS TO ITEMS 3 AND 4 SHOULD BE DISREGARDED IN MAKING THE AWARD.