B-134664, DEC. 20, 1957

B-134664: Dec 20, 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 DECEMBER 12. BY INVITATION TO BID NO. 58-59 BIDS WERE REQUESTED UNDER ITEM 149. THE BIDS WERE OPENED AT 1:00 P.M. THE BID OF THE COLEMAN DAIRY WAS READ AND RECORDED FIRST. THE READING OF THE SECOND BID WAS INTERRUPTED BY MR. COLEMAN WHO STATED THAT HE HAD MADE AN ERROR IN CALCULATING THE UNIT PRICE ON HIS BID ON ITEM 149 IN THAT A BID OF $2.04 PER GALLON WAS INTENDED RATHER THAN $1.02. A CURRENT PUBLICATION OF THE WHOLESALE PRICES OF THE COLEMAN DAIRY WAS ATTACHED TO SUCH LETTER WHICH SHOWS THAT THE PRICE OF HALF-AND-HALF CREAM IS $0.51 PER QUART. IT WAS EVIDENT TO THE CONTRACTING OFFICER THAT AN ERROR HAD BEEN MADE BY COMPARISON WITH OTHER BIDS AS TO ITEM 149.

B-134664, DEC. 20, 1957

TO MR. PAUL T. GREENWAY, CONTRACTING OFFICER, VETERANS ADMINISTRATION HOSPITAL:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 12, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH COLEMAN DAIRY, INC., OF LITTLE ROCK, ARKANSAS, ALLEGES IT MADE IN ITS BID OPENED DECEMBER 12, 1957.

BY INVITATION TO BID NO. 58-59 BIDS WERE REQUESTED UNDER ITEM 149, AMONG OTHERS, FOR 6,205 GALLONS OF PASTEURIZED HALF-AND-HALF FRESH CREAM TO BE FURNISHED UNDER SCHEDULE "A" FOR THE PERIOD JANUARY 1, 1958, THROUGH JUNE 30, 1958, AND UNDER SCHEDULE "B" FOR THE PERIOD JANUARY 1, 1958, THROUGH DECEMBER 31, 1958. THE BIDS WERE OPENED AT 1:00 P.M. ON DECEMBER 12, 1957, AND THE BID OF THE COLEMAN DAIRY WAS READ AND RECORDED FIRST. HOWEVER, THE READING OF THE SECOND BID WAS INTERRUPTED BY MR. COLEMAN WHO STATED THAT HE HAD MADE AN ERROR IN CALCULATING THE UNIT PRICE ON HIS BID ON ITEM 149 IN THAT A BID OF $2.04 PER GALLON WAS INTENDED RATHER THAN $1.02. BY LETTER DATED DECEMBER 12, 1957, MR. COLEMAN CONFIRMED HIS ALLEGATION OF ERROR AND STATED THAT MR. COLEMAN, JR., IN THE ABSENCE OF THE OFFICE MANAGER, FILLED OUT THE BID INTENDING TO BID $2.04 PER GALLON BUT IN CALCULATING THE EXTENSION OF THEIR PER QUART PRICE OF $0.51, HE INSERTED A PER GALLON PRICE OF $1.02 RATHER THAN $2.04. A CURRENT PUBLICATION OF THE WHOLESALE PRICES OF THE COLEMAN DAIRY WAS ATTACHED TO SUCH LETTER WHICH SHOWS THAT THE PRICE OF HALF-AND-HALF CREAM IS $0.51 PER QUART.

THE THREE OTHER BIDS RECEIVED ON THIS ITEM UNDER BOTH SCHEDULES RANGED FROM $1.95 TO $2.04 PER GALLON. YOU ADVISE IN YOUR LETTER THAT UPON COMPLETION OF THE RECORDING OF ALL BIDS, IT WAS EVIDENT TO THE CONTRACTING OFFICER THAT AN ERROR HAD BEEN MADE BY COMPARISON WITH OTHER BIDS AS TO ITEM 149. IT IS FURTHER REPORTED THAT IF CORRECTION OF SUCH BID BE PERMITTED, THE COLEMAN DAIRY WILL NOT BE THE LOWEST AGGREGATE BIDDER.

UNDER THE CIRCUMSTANCES REPORTED, THERE IS NO ROOM FOR DOUBT THAT THE COLEMAN DAIRY MADE AN ERROR IN ITS BID AS ALLEGED. ACCORDINGLY, AND SINCE THE ERROR WAS ALLEGED AND EXPLAINED PRIOR TO AWARD, THE BID OF THE COLEMAN DAIRY MAY BE DISREGARDED IN MAKING THE AWARD.