B-134710, DEC. 30, 1957

B-134710: Dec 30, 1957

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VERERANS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER DATED DECEMBER 17. REQUESTING A DECISION WITH REGARD TO AN ERROR ALLEGED BY THE CORCO CHEMICAL CORPORATION TO HAVE BEEN MADE IN A BID WHICH THE CORPORATION SUBMITTED TO THE VETERANS ADMINISTRATION. ADVISED THAT THE PRICES QUOTED IN ITS BID WERE ON THE BASIS OF A UNIT PRICE PER POUND INSTEAD OF A UNIT PRICE PER BOTTLE. 6 AND 7 SHOULD HAVE BEEN $1.70. IT APPEARS THAT SEVEN OTHER BIDS WERE RECEIVED ON ITEMS NOS. 5 AND 7. SIX OTHER BIDS WERE RECEIVED ON ITEM NO. 6. IT READILY IS SEEN THAT THE BID OF THE CORCO CHEMICAL CORPORATION OF $0.34. IS COMPLETELY OUT OF LINE WITH THE OTHER BIDS RECEIVED ON ITEMS NOS. 5. YOU REPORT THAT THE LAST PRICE BID FOR THE ACETIC ACID WAS $1.438 A BOTTLE.

B-134710, DEC. 30, 1957

TO MR. GLENN C. PARMELEE, DIRECTOR, SUPPLY SERVICE, VERERANS ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER DATED DECEMBER 17, 1957, WITH ENCLOSURES, REQUESTING A DECISION WITH REGARD TO AN ERROR ALLEGED BY THE CORCO CHEMICAL CORPORATION TO HAVE BEEN MADE IN A BID WHICH THE CORPORATION SUBMITTED TO THE VETERANS ADMINISTRATION.

IN RESPONSE TO INVITATION NO. A-141-58, ISSUED ON NOVEMBER 12, 1957, BY THE VETERANS ADMINISTRATION, PROCUREMENT DIVISION, SUPPLY SERVICE, HOSPITAL SUPPLIES SECTION, THE CORCO CHEMICAL CORPORATION SUBMITTED A BID DATED NOVEMBER 18, 1957, OFFERING TO FURNISH, AMONG OTHERS, ITEMS NOS. 5, 6 AND 7, COVERING CERTAIN SPECIFIED QUANTITIES OF ACETIC ACID, GLACIAL, ETC., AT UNIT PRICES OF $0.34, $0.44 AND $0.39, A FIVE-POUND BOTTLE, RESPECTIVELY. IN REPLY TO A LETTER DATED DECEMBER 5, 1957, FROM A PURCHASING AGENT OF THE SUPPLY SERVICE, VETERANS ADMINISTRATION, REQUESTING A VERIFICATION OF THE UNIT PRICES QUOTED ON ITEMS NOS. 5, 6 AND 7, THE CORCO CHEMICAL CORPORATION, BY LETTER DATED DECEMBER 9, 1957, ADVISED THAT THE PRICES QUOTED IN ITS BID WERE ON THE BASIS OF A UNIT PRICE PER POUND INSTEAD OF A UNIT PRICE PER BOTTLE. THE CORPORATION STATED THAT ITS RESPECTIVE UNIT BID PRICES ON ITEMS NOS. 5, 6 AND 7 SHOULD HAVE BEEN $1.70, $2.20 AND $1.95.

IT APPEARS THAT SEVEN OTHER BIDS WERE RECEIVED ON ITEMS NOS. 5 AND 7, WHICH RANGED FROM $1.429 TO $1.70 AND FROM $1.45 TO $1.84, RESPECTIVELY, A UNIT OF THE FIVE-POUND BOTTLES SPECIFIED. ALSO, SIX OTHER BIDS WERE RECEIVED ON ITEM NO. 6, WHICH RANGED FROM $1.479 TO $2.15, A UNIT OF FIVE- POUND BOTTLES. HENCE, IT READILY IS SEEN THAT THE BID OF THE CORCO CHEMICAL CORPORATION OF $0.34, $0.44 AND $0.39 A UNIT, IS COMPLETELY OUT OF LINE WITH THE OTHER BIDS RECEIVED ON ITEMS NOS. 5, 6 AND 7. MOREOVER, YOU REPORT THAT THE LAST PRICE BID FOR THE ACETIC ACID WAS $1.438 A BOTTLE. IN VIEW OF SUCH PRICE DIFFERENTIALS, AND SINCE THE CORCO CHEMICAL CORPORATION ADVISED OF THE ERROR PROMPTLY UPON THE REQUEST OF THE PURCHASING AGENT FOR VERIFICATION AND FURNISHED A WORKSHEET--- CERTIFIED TO AS THE ORIGINAL WORKSHEET--- TO SHOW THAT ITS BID ON ITEMS NOS. 5, 6 AND 7 WAS BASED ON UNITS OF ONE POUND, THERE CAN BE NO DOUBT THAT AN ERROR WAS, IN FACT, MADE IN THE BID OF THE CORPORATION, AS ALLEGED.

ACCORDINGLY, THE BID OF THE CORCO CHEMICAL CORPORATION ON ITEMS NOS. 5, 6 AND 7 SHOULD BE DISREGARDED IN MAKING THE AWARD.

SHOULD AN AWARD BE MADE UNDER INVITATION NO. A-141-58, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT OR VOUCHERS APPLICABLE TO THE TRANSACTION.