B-134437, DEC. 6, 1957

B-134437, DEC. 6, 1957

TO HONORABLE FRANKLIN G. FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 18, 1957, REQUESTING AUTHORITY TO REFORM NEGOTIATED CONTRACT NO. GS-OOS-14026, DATED JANUARY 8, 1957, WITH OZALID, A DIVISION OF GENERAL ANILINE AND FILM CORPORATION, TO CORRECT AN ALLEGED MISTAKE MADE BY THE CONTRACTOR IN SUBMITTING ITS BID.

BY SOLICITATION FOR OFFERS DATED AUGUST 31, 1956, GENERAL SERVICES ADMINISTRATION REQUESTED BIDS ON VARIOUS ITEMS TO BE FURNISHED DURING THE PERIOD FEBRUARY 1, 1957, TO JANUARY 31, 1958, INCLUDING PHOTOGRAPHIC PAPER AND FILM DESIGNATED AS ITEM NO. 18-M-303-100. OZALID ATTACHED TO AND MADE A PART OF ITS BID ON THIS ITEM A PRICE LIST SET UP IN THREE COLUMNS HEADED "100 SHEETS," ,250 SHEETS," AND "500 SHEETS," SHOWING PRICES FOR 28 SIZES OF PHOTOGRAPHIC PAPER OR CLOTH.

BY LETTER DATED MARCH 5, 1957, OZALID ALLEGED ERROR IN ITS BID ON ITEM NO. 18-M-303-100, IN THAT THE COLUMNS IN THE PRICE LIST SUBMITTED WITH THE BID SHOULD HAVE SHOWN 25, 100, AND 250 SHEETS PER PACKAGE INSTEAD OF 100, 250, AND 500 SHEETS, STATING THAT THE ERROR APPARENTLY RESULTED FROM A MISUNDERSTANDING OF INSTRUCTIONS OR AN ERROR IN THE TYPING PREPARATION. IN SUPPORT OF ITS ALLEGATION OF ERROR, OZALID HAS SUBMITTED THE FOLLOWING:

1. A COPY OF ITS ORIGINAL WORK SHEET SHOWING THAT THE BID WAS COMPUTED ON THE BASIS OF PACKAGES CONTAINING 25, 100, AND 250 SHEETS.

2. A PAGE FROM ITS REGULAR COMMERCIAL LIST PRICE SHOWING THAT PAPER SUCH AS THAT DESCRIBED IN ITEM NO. 18-M-303-100 IS REGULARLY OFFERED IN PACKAGES OF 25, 100, AND 250 SHEETS.

3. PAGE 24 OF CONTRACT NO. GS-00S-1676, WHICH EXPIRED JANUARY 31, 1957, SHOWING THAT THE SAME KIND OF PAPER WAS FURNISHED UNDER THAT CONTRACT IN PACKAGES OF 25, 100, AND 250 SHEETS AT PRICES APPROXIMATELY THE SAME AS THOSE INCLUDED IN THE CURRENT CONTRACT FOR PACKAGES OF 100, 250, AND 500 SHEETS.

IN VIEW OF THE FACTS AS REPORTED AND SHOWN BY THE FILE, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT OZALID MADE A BONA FIDE ERROR IN ITS BID, INTENDING TO BID ON PACKAGES CONTAINING 25, 100, AND 250 SHEETS INSTEAD OF 100, 250, AND 500 SHEETS. ALSO, SINCE IT APPEARS THAT THE CONTRACTOR HAD FURNISHED IDENTICAL PAPER TO GENERAL SERVICES ADMINISTRATION DURING THE PRECEDING YEAR AT PRICES APPROXIMATELY THE SAME FOR PACKAGES OF 25, 100, AND 250 SHEETS AS THOSE INCLUDED IN CONTRACT NO. GS-OOS-14026 FOR PACKAGES OF 100, 250, AND 500 SHEETS, THERE IS SUBSTANTIAL GROUND FOR CONCLUDING THAT THE CONTRACTING OFFICER WAS ON NOTICE OF THE PROBABILITY OF ERROR IN THE BID AND SHOULD HAVE REQUESTED VERIFICATION BEFORE MAKING THE AWARD. MOREOVER, IT WOULD APPEAR UNCONSCIONABLE TO REQUIRE THE CONTRACTOR TO FURNISH THE SUPPLIES AT THE PRICES SET OUT IN THE CONTRACT. ACCORDINGLY, THE CONTRACT MAY BE MODIFIED SO AS TO PERMIT PAYMENT ON THE BASIS OF PACKAGES OF 25, 100, AND 250 SHEETS INSTEAD OF 100, 250, AND 500 SHEETS. A REFERENCE TO THIS DECISION SHOULD ACCOMPANY THE CONTRACT.