B-132791, AUG. 7, 1957

B-132791: Aug 7, 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 HOSPITAL: REFERENCE IS MADE TO YOUR LETTER OF JULY 31. ALLEGES WAS MADE IN ITS BID OPENED JULY 26. EXTRA HEAVY SINGLE HUB PIPE IS $199.92 PER HUNDRED FEET. WE MADE AN ERROR IN ARRIVING AT A COST PER LENGTH OF $5.99 WHEREAS IT SHOULD HAVE BEEN $9.99. ON THIS BASIS THE NET EXTENSION WOULD HAVE BEEN $99.90 INSTEAD OF $59.90 AS SHOWN ON OUR BID. "DUE TO THE FACT THAT THIS ERROR WAS DUE TO THE ELEMENT OF HUMAN FAILURE. SINCE THE ERROR WAS ALLEGED AND EXPLAINED BY THE BIDDER PRIOR TO AWARD. ARE RETURNED HEREWITH.

B-132791, AUG. 7, 1957

TO J. F. BUFFO, CHIEF, SUPPLY DIVISION, VETERANS ADMINISTRATION HOSPITAL:

REFERENCE IS MADE TO YOUR LETTER OF JULY 31, 1957, FILE 5080/134, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE N. O. NELSON CO., 118-22 EAST RIVER STREET, PUEBLO, COLORADO, ALLEGES WAS MADE IN ITS BID OPENED JULY 26, 1957.

INVITATION NO. 58-8 DATED JULY 18, 1957, REQUESTED BIDS FOR FURNISHING, AMONG OTHER ITEMS, SPECIFIED QUANTITIES OF CAST-IRON PIPE UNDER ITEM 18. THE N. O. NELSON CO. SUBMITTED A BID DATED JULY 23, 1957, OFFERING TO FURNISH UNDER ITEM 18, TEN SINGLE HUB, 6 IN. CAST IRON PIPE, 5-FOOT LENGTHS, AT THE PRICE OF $5.99 PER LENGTH. THE ABSTRACT OF BIDS SHOWS THAT TWO OTHER BIDDERS QUOTED PRICES OF $9.50 AND $10.05, RESPECTIVELY, FOR IDENTICAL LENGTHS OF PIPE.

UPON BEING REQUESTED BY LETTER DATED JULY 26, 1957, TO VERIFY ITS BID ON ITEM 18, THE COMPANY ADVISED BY LETTER DATED JULY 30, 1957, AS FOLLOWS:

"THE LIST PRICE OF 6 IN. EXTRA HEAVY SINGLE HUB PIPE IS $199.92 PER HUNDRED FEET. IN CALCULATING PRICE PER 5 FOOT LENGTHS FROM THE 100 FOOT PRICE, WE MADE AN ERROR IN ARRIVING AT A COST PER LENGTH OF $5.99 WHEREAS IT SHOULD HAVE BEEN $9.99. ON THIS BASIS THE NET EXTENSION WOULD HAVE BEEN $99.90 INSTEAD OF $59.90 AS SHOWN ON OUR BID.

"DUE TO THE FACT THAT THIS ERROR WAS DUE TO THE ELEMENT OF HUMAN FAILURE, WE ASK THAT YOU KINDLY ACCEPT THE FOREGOING AS A CHANGE IN OUR BID PRICE TO ITEM NO. 18.'

UPON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS LITTLE ROOM FOR DOUBT THAT THE N. O. NELSON CO. 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 31, 1957, ARE RETURNED HEREWITH.