B-133745, SEP. 23, 1957

B-133745: Sep 23, 1957

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DIRECTOR SUPPLY SERVICE DEPARTMENT OF MEDICINE AND SURGERY VETERANS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER (134C3-12). NINE OTHER BIDS WERE RECEIVED ON THESE ITEMS RANGING FROM $1.64. YOU STATE THAT AT THE TIME BIDS WERE OPENED AND REVIEWED IT APPEARED THAT THE UNIT PRICES QUOTED BY RAYMER PHARMACAL COMPANY ON ITEMS NOS. 9. 10 AND 11 WERE IN ERROR. YOU FURTHER STATE THAT THE LAST PRICE PAID FOR THE MATERIAL IN THESE ITEMS WAS $1.64 A BOTTLE. THE COMPANY WAS REQUESTED TO CONFIRM ITS BID PRICES. ALLEGED THAT ITS BID PRICES ON THESE ITEMS WERE IN ERROR AND ADVISED THAT THE CORRECT PRICES SHOULD HAVE BEEN GIVEN AS "$2.75. THERE IS LITTLE ROOM FOR DOUBT THAT THE COMPANY MADE ERRORS IN ITS BID PRICES FOR ITEMS 9.

B-133745, SEP. 23, 1957

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

REFERENCE IS MADE TO YOUR LETTER (134C3-12), DATED SEPTEMBER 16, 1957, WITH ENCLOSURES, IN WHICH YOU REQUEST A DECISION AS TO WHETHER RAYMER PHARMACAL COMPANY, PHILADELPHIA, PENNSYLVANIA, MAY BE PERMITTED TO CHANGE ITS BID PRICES ON ITEMS NOS. 9, 10, AND 11 OF INVITATION NO. A-51-58.

THE PROCUREMENT DIVISION, SUPPLY SERVICE, HOSPITAL SUPPLIES SECTION, OF THE VETERANS ADMINISTRATION, BY INVITATION NO. A-51-58, DATED JULY 9, 1957, SOLICITED BIDS FOR FURNISHING MEDICAL SUPPLIES, ITEMS NOS. 9, 10, AND 11 OF WHICH CALLED FOR SECOBARBITAL SODIUM CAPSULES, 0.1 GM. (1 1/2 GR.), USP, AT A PRICE PER UNIT OF 500 IN A BOTTLE, WITH 48 BOTTLES PACKAGED IN A SHIPPING CONTAINER.

IN RESPONSE TO THE INVITATION, RAYMER PHARMACAL COMPANY SUBMITTED PRICE QUOTATIONS ON THESE ITEMS OF $1.30, $1.35 AND $1.35. NINE OTHER BIDS WERE RECEIVED ON THESE ITEMS RANGING FROM $1.64, $1.54, AND $1.64, TO $7.09, $7.09 AND $7.09.

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