B-132692, SEP. 5, 1957

B-132692: Sep 5, 1957

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

VETERANS ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED JULY 23. ALLEGES WAS MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 1077 IS BASED. RECEIPT IS ALSO ACKNOWLEDGED OF AN UNDATED LETTER. THE DECISION IS BEING ADDRESSED TO YOU. IT WAS STATED THAT. SOME DOUBT EXISTED AS TO WHETHER ITEMS 6 AND 7 WERE CORRECT AND THAT UPON BEING REQUESTED BY TELEPHONE TO VERIFY ITS BID AS TO ITEMS 6 AND 7. IT WAS ALSO STATED THAT. THE CORPORATION ADVISED THAT THE CORRECT UNIT PRICES FOR ITEMS 6 AND 7 ARE $23 EACH AND $25 EACH. AWARD WAS MADE AND THE CORPORATION WAS ADVISED TO SUBMIT TWO CLAIMS IN ACCORDANCE WITH EXISTING PROCEDURES. THE CORPORATION SUBMITTED A SUPPLEMENTAL INVOICE IN THE AMOUNT OF $59.30 AND STATED THAT LACK OF INFORMATION NORMALLY ACCOMPANYING INQUIRIES FOR READY HUNG DOOR UNITS LED IT TO BELIEVE DOORS ONLY WERE REQUIRED AND THAT THE PRICES QUOTED FOR ITEMS 6 AND 7 DID NOT INCLUDE THE COST OF "JAMBS.

B-132692, SEP. 5, 1957

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

REFERENCE IS MADE TO A LETTER DATED JULY 23, 1957, WITH ENCLOSURES, FILE REFERENCE 7023/134E11, FROM THE EXECUTIVE OFFICER, VETERANS ADMINISTRATION SUPPLY DEPOT, SOMERVILLE, NEW JERSEY, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE ELIZABETH LUMBER COMPANY, INC., ELIZABETH, NEW JERSEY, ALLEGES WAS MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 1077 IS BASED. RECEIPT IS ALSO ACKNOWLEDGED OF AN UNDATED LETTER, WITH ENCLOSURE, RECEIVED ON AUGUST 26, 1957, FROM THE CHIEF, STOCK CONTROL DIVISION, VETERANS ADMINISTRATION SUPPLY DEPOT, SOMERVILLE, NEW JERSEY.

SINCE AN AWARD HAS BEEN MADE IN THE PRESENT CASE, THE DECISION IS BEING ADDRESSED TO YOU. SEE 26 COMP. GEN. 993 AND 28 ID. 401.

THE VETERANS ADMINISTRATION SUPPLY DEPOT, SOMERVILLE, NEW JERSEY, BY INVITATION NO. 57-13, REQUESTED BIDS--- TO BE OPENED JUNE 19, 1957--- FOR FURNISHING ONE 2 FEET, 6 INCHES, BY 6 FEET, 8 INCHES READY HUNG FLUSH DOOR, GRADE B BIRCH, ITEM 6, AND THREE 3 FEET, 3 INCHES, BY 6 FEET, 8 INCHES READY HUNG FLUSH DOORS, GRADE B BIRCH, ITEM 7. IN RESPONSE THE ELIZABETH LUMBER COMPANY, INC., SUBMITTED A BID DATED JUNE 17, 1957, OFFERING TO FURNISH, AMONG OTHERS, THE READY HUNG DOORS UNDER ITEMS 6 AND 7 AT PRICES OF $9 AND $9.90 EACH, RESPECTIVELY.

IN THE LETTER OF JULY 23, 1957, IT WAS STATED THAT, IN ANALYZING THE BID OF THE ELIZABETH LUMBER COMPANY, INC., SOME DOUBT EXISTED AS TO WHETHER ITEMS 6 AND 7 WERE CORRECT AND THAT UPON BEING REQUESTED BY TELEPHONE TO VERIFY ITS BID AS TO ITEMS 6 AND 7, THE ELIZABETH LUMBER COMPANY, INC., ALLEGED THAT IT HAD ERRONEOUSLY QUOTED PRICES ON DOORS ONLY AND NOT READY HUNG FLUSH DOORS AS REQUIRED. IT WAS ALSO STATED THAT, BY LETTER DATED JUNE 20, 1957, THE CORPORATION ADVISED THAT THE CORRECT UNIT PRICES FOR ITEMS 6 AND 7 ARE $23 EACH AND $25 EACH, RESPECTIVELY, AND THAT SINCE TIME FOR DELIVERY DID NOT PERMIT ANY DELAY ON RESOLVING THIS BID, AWARD WAS MADE AND THE CORPORATION WAS ADVISED TO SUBMIT TWO CLAIMS IN ACCORDANCE WITH EXISTING PROCEDURES. BY LETTER DATED JUNE 27, 1957, THE CORPORATION SUBMITTED A SUPPLEMENTAL INVOICE IN THE AMOUNT OF $59.30 AND STATED THAT LACK OF INFORMATION NORMALLY ACCOMPANYING INQUIRIES FOR READY HUNG DOOR UNITS LED IT TO BELIEVE DOORS ONLY WERE REQUIRED AND THAT THE PRICES QUOTED FOR ITEMS 6 AND 7 DID NOT INCLUDE THE COST OF "JAMBS, CASING, HARDWARE, AND STOPS.'

ON THE RECORD THERE IS NO ROOM FOR DOUBT THAT THE CORPORATION MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND SATISFACTORILY EXPLAINED PRIOR TO AWARD--- WHICH AWARD WAS MADE BECAUSE OF THE URGENT NEED FOR THE MATERIALS--- AN ADDITIONAL PAYMENT OF $59.30 IS AUTHORIZED TO BE MADE TO THE ELIZABETH LUMBER COMPANY, INC., FOR THE QUANTITY OF DOORS DELIVERED UNDER PURCHASE ORDER NO. 1077, IT APPEARING THAT THE AGGREGATE AMOUNT OF THE CONTRACT PLUS THE AMOUNT OF THE ADDITIONAL PAYMENT WILL STILL BE THE LOWEST THAT COULD HAVE BEEN MADE ON THE BIDS RECEIVED.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING THE ADDITIONAL PAYMENT ON THE DOORS.