B-132743, AUG. 21, 1957

B-132743: Aug 21, 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: WE HAVE RECEIVED A LETTER DATED JULY 26. WAS THE ONLY BIDDER ON ITEMS 3 AND 4. ON BOTH ITEMS WAS ACCEPTED AND THE CONTRACT WAS AWARDED ON JUNE 6. THE UNIT PRICE FOR ITEMS 3 AND 4 WAS MISSTATED AS $30.30. WAS $37.30. IT APPEARS FROM THE FACTS PRESENTED THAT THE CONTRACTOR DID MAKE AN ERROR IN PREPARING THE BID AND THAT IT WAS NOT INTENDED TO ALLOW $10.65 AS THE DIFFERENCE IN THE DELIVERY CHARGES EAST OF DENVER AND WEST OF DENVER. CONCLUDE ALSO THAT THIS DISCREPANCY ON THE FACE OF THE BID SHOULD HAVE BEEN SO APPARENT TO THE CONTRACTING OFFICER THAT ACCEPTANCE OF THE BID WITHOUT VERIFICATION WAS ERRONEOUS. YOU ARE AUTHORIZED TO ADJUST THE UNIT PRICES OF THE CARDIOGRAPH PAPER TO BE FURNISHED EAST OF DENVER UNDER ITEMS NOS. 3 AND 4 OF THE CONTRACT TO $40.30.

B-132743, AUG. 21, 1957

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

WE HAVE RECEIVED A LETTER DATED JULY 26, 1957, FROM THE DIRECTOR, SUPPLY SERVICE, DEPARTMENT OF MEDICINE AND SURGERY, VETERANS ADMINISTRATION, REQUESTING DECISION WHETHER, ON THE BASIS OF AN ALLEGED ERROR IN BID, THE CAMBRIDGE INSTRUMENT COMPANY, INC., MAY BE ALLOWED AN INCREASE IN THE CONTRACT PRICE OF CARDIOGRAPH PAPER TO BE FURNISHED UNDER CONTRACT NO. V1005 P-8025.

THE RECORDS SHOW THAT IN RESPONSE TO INVITATION NO. A-376-57, THE CAMBRIDGE INSTRUMENT COMPANY, INC., WAS THE ONLY BIDDER ON ITEMS 3 AND 4, PAPER, CARDIOGRAPH, FOR USE WITH CAMBRIDGE PORTABLE ELECTROCARDIOGRAPHS. ITS BID OF $30.30 PER UNIT, EAST OF DENVER, AND $40,95 PER UNIT, WEST OF DENVER, ON BOTH ITEMS WAS ACCEPTED AND THE CONTRACT WAS AWARDED ON JUNE 6, 1957.

IN A LETTER DATED JULY 12, 1957, TO THE VETERANS ADMINISTRATION, THE CONTRACTOR STATED THAT, DUE TO A TYPOGRAPHICAL ERROR IN PREPARING THE BID, THE UNIT PRICE FOR ITEMS 3 AND 4 WAS MISSTATED AS $30.30, EAST OF DENVER, INSTEAD OF $40.30 WHICH THE COMPANY INTENDED TO BID. THE CONTRACTOR VERIFIES AS CORRECT THE UNIT PRICE OF $40.95 QUOTED ON BOTH ITEMS, WEST OF DENVER, AND IT ALLEGES THAT THE DIFFERENCE BETWEEN THE TWO PRICES SHOULD BE ?65 PER UNIT, INSTEAD OF $10.65, REPRESENTING THE DIFFERENCE IN DELIVERY CHARGES. THE DIRECTOR, SUPPLY SERVICE, STATES THAT THE UNIT PRICE OF THE SAME ITEMS ON THE PREVIOUS CONTRACT WITH THE COMPANY WHICH EXPIRED JUNE 30, 1957, WAS $37.30, EAST OF DENVER, AND $37.90, WEST OF DENVER, A DIFFERENCE OF ?60.

IT APPEARS FROM THE FACTS PRESENTED THAT THE CONTRACTOR DID MAKE AN ERROR IN PREPARING THE BID AND THAT IT WAS NOT INTENDED TO ALLOW $10.65 AS THE DIFFERENCE IN THE DELIVERY CHARGES EAST OF DENVER AND WEST OF DENVER. CONCLUDE ALSO THAT THIS DISCREPANCY ON THE FACE OF THE BID SHOULD HAVE BEEN SO APPARENT TO THE CONTRACTING OFFICER THAT ACCEPTANCE OF THE BID WITHOUT VERIFICATION WAS ERRONEOUS.

IN VIEW OF THIS, YOU ARE AUTHORIZED TO ADJUST THE UNIT PRICES OF THE CARDIOGRAPH PAPER TO BE FURNISHED EAST OF DENVER UNDER ITEMS NOS. 3 AND 4 OF THE CONTRACT TO $40.30, THE AMOUNT THE COMPANY OBVIOUSLY INTENDED TO BID. REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.