B-134215, OCT. 30, 1957

B-134215: Oct 30, 1957

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VETERANS ADMINISTRATION HOSPITAL: REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 23. TRANSMITTING CERTAIN PAPERS FOR OUR CONSIDERATION AND DECISION WITH REGARD TO AN ERROR ALLEGED BY HOLBROCK LUMBER AND SUPPLY TO HAVE BEEN MADE IN A BID WHICH THE COMPANY SUBMITTED TO THE VETERANS ADMINISTRATION HOSPITAL. HOLBROCK LUMBER AND SUPPLY REPLIED THAT THERE WAS A MISUNDERSTANDING ON ITS PART RELATIVE TO THE D GRADE PONDEROSA PINE. THE BID OF HOLBROCK LUMBER AND SUPPLY OF $0.13 A BOARD FOOT FOR ITEM NO. 1 WAS CONSIDERABLY OUT OF LINE WITH THE FOUR OTHER BIDS OF $0.2875. $0.38 A BOARD FOOT WHICH WERE RECEIVED FOR THIS ITEM. THE COMPANY'S STATEMENT THAT AN ERROR WAS MADE ON ITEM NO. 1 OF ITS BID THUS APPEARS TO BE FULLY SUBSTANTIATED BY THE EXISTING PRICE DIFFERENTIAL IN THE BIDS RECEIVED.

B-134215, OCT. 30, 1957

TO MR. J. F. BUFFO, CONTRACTING OFFICER, VETERANS ADMINISTRATION HOSPITAL:

REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 23, 1957, TRANSMITTING CERTAIN PAPERS FOR OUR CONSIDERATION AND DECISION WITH REGARD TO AN ERROR ALLEGED BY HOLBROCK LUMBER AND SUPPLY TO HAVE BEEN MADE IN A BID WHICH THE COMPANY SUBMITTED TO THE VETERANS ADMINISTRATION HOSPITAL, FORT LYON, COLORADO.

IN RESPONSE TO INVITATION NO. 58-35, ISSUED BY THE SUPPLY DIVISION, VETERANS ADMINISTRATION HOSPITAL, FORT LYON, COLORADO, ON SEPTEMBER 24, 1957, HOLBROCK LUMBER AND SUPPLY OFFERED TO FURNISH, AMONG OTHERS, ITEM NO. 1, COVERING 1,500 BOARD FEET OF PONDEROSA PINE, D FINISH, 1 INCH BY 12 INCHES RANDOM LENGTHS, AT $0.13 A BOARD FOOT, OR FOR A TOTAL PRICE FOR THAT ITEM OF $195. BY LETTER DATED OCTOBER 4, 1957, THE SUPPLY DIVISION OF THE HOSPITAL CONFIRMED A TELEPHONE CONVERSATION OF THAT DATE WITH HOLBROCK LUMBER AND SUPPLY AND FORMALLY REQUESTED A VERIFICATION OF THE COMPANY'S BID WITH RESPECT TO ITEM NO. 1. BY LETTER DATED OCTOBER 22, 1957, HOLBROCK LUMBER AND SUPPLY REPLIED THAT THERE WAS A MISUNDERSTANDING ON ITS PART RELATIVE TO THE D GRADE PONDEROSA PINE, 1 INCH BY 12 INCH RANDOM LENGTHS, AS SPECIFIED UNDER ITEM NO. 1 AND REQUESTED PERMISSION TO RETRACT THIS PART OF ITS BID ON ACCOUNT OF THE ERROR SINCE IT COULD NOT SUPPLY THIS LUMBER AT THE PRICE OF $0.13 A BOARD FOOT QUOTED. IN THE ALTERNATIVE, THE COMPANY STATED THAT IT COULD FURNISH ITEM NO. 1 AT $339 A THOUSAND.

THE BID OF HOLBROCK LUMBER AND SUPPLY OF $0.13 A BOARD FOOT FOR ITEM NO. 1 WAS CONSIDERABLY OUT OF LINE WITH THE FOUR OTHER BIDS OF $0.2875, $0.2975, $0.35, AND $0.38 A BOARD FOOT WHICH WERE RECEIVED FOR THIS ITEM. THE COMPANY'S STATEMENT THAT AN ERROR WAS MADE ON ITEM NO. 1 OF ITS BID THUS APPEARS TO BE FULLY SUBSTANTIATED BY THE EXISTING PRICE DIFFERENTIAL IN THE BIDS RECEIVED.

ACCORDINGLY, ITEM NO. 1 OF THE BID OF HOLBROCK LUMBER AND SUPPLY MAY BE DISREGARDED IN MAKING THE AWARD.

A REFERENCE SHOULD BE MADE TO THIS DECISION ON ANY OTHER AWARD WHICH IS MADE ON ITEM NO. 1 UNDER THE SUBJECT INVITATION.