B-132742, AUG. 6, 1957

B-132742: Aug 6, 1957

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF JULY 26. ALLEGES WAS MADE IN ITS BID OPENED JULY 15. AS FOLLOWS: "OUR BID FOR THIS ITEM WAS IN ERROR SINCE THE QUOTATION. WAS BASED ON TINCTURE BENZOIN COMPOUND. FROM THE ENCLOSED WORKSHEET IT IS OBVIOUS THAT THE FLUID EXTRACT BENZOIN COMPOUND COSTS US CONSIDERABLY MORE THAN THE PRICE QUOTED IN THE INVITATION IN ERROR. THE COST TO US FOR FLUID EXTRACT BENZOIN COMPOUND IS ?67 PER PINT WITHOUT CONSIDERATION OF LOSS OF MANUFACTURE. SINCE THE ERROR WAS ALLEGED AND EXPLAINED BY THE BIDDER PRIOR TO AWARD. ARE RETURNED HEREWITH.

B-132742, AUG. 6, 1957

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

REFERENCE IS MADE TO YOUR LETTER OF JULY 26, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE PHYSICIANS DRUG AND SUPPLY COMPANY, 355 NORTH 3RD STREET, PHILADELPHIA 6, PENNSYLVANIA, ALLEGES WAS MADE IN ITS BID OPENED JULY 15, 1957.

BY INVITATION NO. A-9-58, THE VETERANS ADMINISTRATION, PROCUREMENT DIVISION, SUPPLY SERVICE, WASHINGTON, D.C., REQUESTED BIDS FOR FURNISHING, AMONG OTHER ITEMS, SPECIFIED QUANTITIES OF BENZOIN COMPOUND FLUID, 1 PINT, STOCK NO. 1099075, UNDER ITEMS 4, 5, AND 6. THE PHYSICIANS DRUG AND SUPPLY COMPANY SUBMITTED A BID DATED JULY 13, 1957, OFFERING TO FURNISH BENZOIN COMPOUND FLUID, 1 PINT, UNDER ITEMS 4, 5 AND 6, AT UNIT PRICES OF $0.58, $0.68, AND $0.62 PER PINT, RESPECTIVELY. THE LIST OF BIDS IN YOUR LETTER SHOWS THAT FOUR OTHER BIDDERS QUOTED PRICES OF:

CHART

CONTRACTOR ITEM 4 ITEM 5 ITEM 6

NO. 2 $1.00 $1.06 $1.02

NO. 3 $1.15 $1.19 $1.17

NO. 4 $1.25 $1.40 $1.28

NO. 5 -- $1.50 --

UPON BEING REQUESTED BY LETTER DATED JULY 16, 1957, TO VERIFY ITS BID ON ITEMS 4, 5, AND 6, THE COMPANY ADVISED BY LETTER DATED JULY 19, 1957, AS FOLLOWS:

"OUR BID FOR THIS ITEM WAS IN ERROR SINCE THE QUOTATION, IN ERROR, WAS BASED ON TINCTURE BENZOIN COMPOUND. FROM THE ENCLOSED WORKSHEET IT IS OBVIOUS THAT THE FLUID EXTRACT BENZOIN COMPOUND COSTS US CONSIDERABLY MORE THAN THE PRICE QUOTED IN THE INVITATION IN ERROR. IN ACCORDANCE WITH THE ENCLOSED SHEET, THE COST TO US FOR FLUID EXTRACT BENZOIN COMPOUND IS ?67 PER PINT WITHOUT CONSIDERATION OF LOSS OF MANUFACTURE, BOTTLES, LABELS, CAPS, PACKING, AND LABOR.

"UNDER THE ABOVE CIRCUMSTANCES, WE SHALL APPRECIATE YOUR CONSIDERATION OF STRIKING OUT OUR BID FOR THIS ITEM.'

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT THE PHYSICIANS DRUG AND SUPPLY COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED BY THE BIDDER PRIOR TO AWARD, THE BID OF THE COMPANY MAY BE DISREGARDED IN MAKING THE AWARD.

THE PAPERS, WITH THE EXCEPTION OF YOUR LETTER OF JULY 26, 1957, ARE RETURNED HEREWITH.