B-132761, AUG. 8, 1957

B-132761: Aug 8, 1957

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PUBLIC PRINTER: REFERENCE IS MADE TO YOUR LETTER OF JULY 31. ALLEGES WAS MADE IN ITS BID OPENED ON JULY 24. SINCE THE BID OF THE DENNISON MANUFACTURING COMPANY WAS OUT OF LINE WITH THE OTHER BIDS. THE COMPANY WAS REQUESTED BY TELEGRAM DATED JULY 25. THE COMPANY ADVISED THAT ITS BID PRICE ON TAGS WAS INCORRECT AND THAT IT SHOULD BE $5.17 PER THOUSAND WHICH. THE COMPANY STATED THAT ITS BID PRICE OF $3.76 PER THOUSAND WAS ERRONEOUS IN THAT IT WAS BASED ON USING 15 C.S.U. ARE NOT SUCH AS WOULD WARRANT A DEPARTURE FROM THE BASIC RULE THAT BIDS MAY NOT BE CHANGED AFTER THEY HAVE BEEN OPENED. SINCE IT WAS BELIEVED THAT THE BID OF THE DENNISON MANUFACTURING COMPANY WAS ERRONEOUS. SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED BY THE BIDDER PRIOR TO AWARD.

B-132761, AUG. 8, 1957

TO HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER OF JULY 31, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE DENNISON MANUFACTURING COMPANY, FRAMINGHAM, MASSACHUSETTS, ALLEGES WAS MADE IN ITS BID OPENED ON JULY 24, 1957.

THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS UNDER JACKET NO. 430651, FOR FURNISHING 200,001 TAGS, SIZE 6 1/4 BY 3 1/8 INCHES, PRINTED FACE ONLY ON NO. 8--- TYPE B, CLASS 1, RED 20--- C.S.U. PAPER TO BE FURNISHED BY THE CONTRACTOR AND SHIPMENT TO BE MADE ON OR BEFORE SEPTEMBER 16, 1957. RESPONSE THE DENNISON MANUFACTURING COMPANY SUBMITTED A BID DATED JULY 17, 1957, OFFERING TO FURNISH THE TAGS AT A PRICE OF $3.76 PER THOUSAND OR FOR A TOTAL PRICE OF $600. THE FOUR OTHER BIDS ON THE TAGS RANGED FROM $1,132 TO $1,600.

YOU STATE THAT, SINCE THE BID OF THE DENNISON MANUFACTURING COMPANY WAS OUT OF LINE WITH THE OTHER BIDS, THE COMPANY WAS REQUESTED BY TELEGRAM DATED JULY 25, 1957, TO REVIEW THE SPECIFICATIONS AND CONFIRM ITS BID PRICE; AND THAT BY TELEGRAM DATED JULY 26, 1957, THE COMPANY ADVISED THAT ITS BID PRICE ON TAGS WAS INCORRECT AND THAT IT SHOULD BE $5.17 PER THOUSAND WHICH, YOU STATE, WOULD MAKE A TOTAL PRICE OF $1,034 FOR THE TAGS.

IN A CONFIRMING LETTER DATED JULY 26, 1957, THE COMPANY STATED THAT ITS BID PRICE OF $3.76 PER THOUSAND WAS ERRONEOUS IN THAT IT WAS BASED ON USING 15 C.S.U. PAPER STOCK INSTEAD OF 20 C.S.U. PAPER STOCK AS REQUIRED BY THE SPECIFICATIONS. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED ITS ORIGINAL ESTIMATE SHEET.

ON THE RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT THE DENNISON MANUFACTURING COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. THE CIRCUMSTANCES IN THE PRESENT CASE, HOWEVER, ARE NOT SUCH AS WOULD WARRANT A DEPARTURE FROM THE BASIC RULE THAT BIDS MAY NOT BE CHANGED AFTER THEY HAVE BEEN OPENED. SEE 17 COMP. GEN. 575.

ACCORDINGLY, SINCE IT WAS BELIEVED THAT THE BID OF THE DENNISON MANUFACTURING COMPANY WAS ERRONEOUS, AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS 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 THE BIDDER'S LETTER AND ESTIMATE SHEET, ARE RETURNED.