B-134235, NOV. 4, 1957

B-134235: Nov 4, 1957

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GOVERNMENT PRINTING OFFICE: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 29. TO HAVE BEEN MADE IN THEIR BIDS OPENED ON OCTOBER 15. THE TEXT PAPER AND CONTAINERS ARE TO BE FURNISHED BY THE GOVERNMENT PRINTING OFFICE AND THE COVER PAPER IS TO BE FURNISHED BY THE CONTRACTOR. THE VARIOUS OPERATIONS REQUIRED TO PRODUCE THE PAMPHLET ARE DESCRIBED IN A SCHEDULE UNDER ITEMS I TO III. PROSPECTIVE BIDDERS WERE REQUIRED TO QUOTE A UNIT PRICE FOR EACH OPERATION ON THE BASES SET FORTH THEREIN. THE TWO LOWEST BIDS WERE SUBMITTED BY THE GUTHRIE LITHOGRAPH CO. YOU STATE THAT SHORTLY AFTER THE BIDS WERE OPENED AND BEFORE THEY WERE EXAMINED BY THE CONTRACTING OFFICER. WHICH HAD BEEN ERRONEOUSLY ENTERED ON THE BID FORM AS $0.01 WHEREAS IT WAS INTENDED TO BE $1 PER NEGATIVE.

B-134235, NOV. 4, 1957

TO HONORABLE JOHN M. WILSON, ACTING PUBLIC PRINTER, GOVERNMENT PRINTING OFFICE:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 29, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING ERRORS ALLEGED BY THE GUTHRIE LITHOGRAPH CO., INC., WASHINGTON, D.C., AND MAJESTIC PRESS, INC., PHILADELPHIA, PENNSYLVANIA, TO HAVE BEEN MADE IN THEIR BIDS OPENED ON OCTOBER 15, 1957, FOR PUBLICATION OF A MONTHLY NEWS LETTER FOR THE DEPARTMENT OF THE NAVY.

THE INVITATION REQUESTED BIDS FOR THE PRINTING AND BINDING OF THE PUBLICATION, CONSISTING OF 48 PAGES AND COVER, FOR THE PERIOD BEGINNING NOVEMBER 1, 1957, AND ENDING OCTOBER 1, 1958. THE TEXT PAPER AND CONTAINERS ARE TO BE FURNISHED BY THE GOVERNMENT PRINTING OFFICE AND THE COVER PAPER IS TO BE FURNISHED BY THE CONTRACTOR. THE VARIOUS OPERATIONS REQUIRED TO PRODUCE THE PAMPHLET ARE DESCRIBED IN A SCHEDULE UNDER ITEMS I TO III, INCLUSIVE, AND PROSPECTIVE BIDDERS WERE REQUIRED TO QUOTE A UNIT PRICE FOR EACH OPERATION ON THE BASES SET FORTH THEREIN. IN RESPONSE TO THE INVITATION, THE TWO LOWEST BIDS WERE SUBMITTED BY THE GUTHRIE LITHOGRAPH CO., INC., AND MAJESTIC PRESS, INC.

YOU STATE THAT SHORTLY AFTER THE BIDS WERE OPENED AND BEFORE THEY WERE EXAMINED BY THE CONTRACTING OFFICER, THE GUTHRIE LITHOGRAPH CO., INC., TELEPHONED ALLEGING THAT AN ERROR HAD BEEN MADE IN THEIR UNIT PRICE FOR THE NEGATIVES COVERED BY ITEM I (A); WHICH HAD BEEN ERRONEOUSLY ENTERED ON THE BID FORM AS $0.01 WHEREAS IT WAS INTENDED TO BE $1 PER NEGATIVE; AND THAT THE CORPORATION ALLEGED FURTHER THAT ANOTHER ERROR WAS MADE ON ITEMS III (A) AND (B) IN THAT IT HAD FAILED TO INCLUDE IN ITS BID PRICES THE PRICE OF SUPPLIED STOCK, NAMELY, $190 ON THE FIRST 10,000 COPIES AND $18.50 FOR EACH ADDITIONAL THOUSAND COPIES. BY CONFIRMING LETTER DATED OCTOBER 15, 1957, THE CORPORATION SUBMITTED ITS ORIGINAL ESTIMATE SHEETS, WHICH INDICATE THAT AN ERROR WAS MADE BY THE CORPORATION'S TYPIST IN TRANSCRIBING THE PRICES FOR NEGATIVES FROM THE ESTIMATE SHEETS TO THE BID FORM, AND ALSO THAT THE CORPORATION HAD FAILED TO INCLUDE IN ITS BID PRICES FOR ITEMS III (A) AND (B) THE COST OF THE COVER PAPER. IT IS STATED THAT IT IS APPARENT THAT THE CORPORATION'S BID PRICE OF $0.01 PER PAGE PER NEGATIVE FOR ITEM I (A) IS INCORRECT AS THE GOVERNMENT PRINTING OFFICE PRICE FOR THIS ITEM IS $1 PER NEGATIVE AND THAT THE CORPORATION'S BID PRICES FOR ITEMS III (A) AND (B) ARE UNUSUALLY LOW WHEN COMPARED TO THE GOVERNMENT PRINTING OFFICE ESTIMATE FOR THIS TYPE OF WORK.

IT IS STATED FURTHER THAT IN EXAMINING THE BIDS AND EVALUATING THE CLAIM OF THE GUTHRIE LITHOGRAPH CO., AS TO THE ERROR IN BID, THE CONTRACTING OFFICER NOTED THAT MAJESTIC PRESS, INC., HAD APPARENTLY MADE THE SAME TYPE OF ERROR AS MADE BY THE GUTHRIE LITHOGRAPH CO., INC., IN QUOTING ON ITEMS III (A) AND (B), AS THE PRICES QUOTED BY MAJESTIC WERE LOWER THAN THE PRICES QUOTED BY THE GUTHRIE LITHOGRAPH CO., INC., AND THE GOVERNMENT PRINTING OFFICE ESTIMATE; THAT BY TELEGRAM DATED OCTOBER 22, 1957, MAJESTIC PRESS, INC., WAS REQUESTED TO REVIEW THE SPECIFICATION AND CONFIRM ITS BID PRICES FOR ITEMS III (A) AND (B); AND THAT SUBSEQUENTLY THE CORPORATION ADVISED BY TELEPHONE THAT IT HAD FAILED TO INCLUDE THE COST OF THE COVER PAPER IN THE BASIC SIGNATURE PRICES. BY CONFIRMING LETTER DATED OCTOBER 23, 1957, MAJESTIC PRESS, INC., SUBMITTED ITS ESTIMATE SHEETS WHICH, YOU STATE, SHOW THAT THE CORPORATION HAD ACTUALLY CALCULATED THE COST OF THE COVER STOCK BUT FAILED TO ADD THIS COST TO THE PRICES QUOTED UNDER ITEMS III (A) AND (B), WHEN CARRYING THE PRICES TO THE QUOTATION FORM.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT BOTH THE GUTHRIE LITHOGRAPH CO., INC., AND MAJESTIC PRESS, INC., MADE ERRORS IN THEIR BIDS, AS ALLEGED. ACCORDINGLY, SINCE THE ERRORS WERE ALLEGED AND EXPLAINED BY THE BIDDERS PRIOR TO AWARD, THE BIDS OF THE GUTHRIE LITHOGRAPH CO., INC., AND MAJESTIC PRESS, INC., MAY BE DISREGARDED IN MAKING THE AWARD.