B-135276, FEB. 27, 1958

B-135276: Feb 27, 1958

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VETERANS ADMINISTRATION HOSPITAL: REFERENCE IS MADE TO YOUR LETTER DATED FEBRUARY 14. REQUESTING OUR DECISION WITH REGARD TO AN ERROR ALLEGED BY THE DAKOTA STEEL AND SUPPLY COMPANY TO HAVE BEEN MADE IN A BID WHICH THE COMPANY SUBMITTED TO THE VETERANS ADMINISTRATION. YOU STATE THAT AFTER THE BID OPENING THE DAKOTA STEEL AND SUPPLY COMPANY WAS REQUESTED. THIS AMOUNT WAS TRANSFERRED FROM THE COMPANY'S WORK SHEET TO THE BID FORM AS A TOTAL AMOUNT FOR THE TWO PIECES OF SAFETY PLATE CALLED FOR. IT IS OBVIOUS THAT YOU SUSPECTED AN ERROR ON ITEM NO. 28 OF THE BID OF THE DAKOTA STEEL AND SUPPLY COMPANY AT THE TIME THE BIDS WERE OPENED. DOUBT BUT THAT AN ERROR WAS MADE ON ITEM NO. 28 OF THE BID OF THE DAKOTA STEEL AND SUPPLY COMPANY.

B-135276, FEB. 27, 1958

TO MR. L. B. BREITWEISER, CONTRACTING OFFICER, VETERANS ADMINISTRATION HOSPITAL:

REFERENCE IS MADE TO YOUR LETTER DATED FEBRUARY 14, 1958, WITH ENCLOSURES, FILE REFERENCE 5147-134, REQUESTING OUR DECISION WITH REGARD TO AN ERROR ALLEGED BY THE DAKOTA STEEL AND SUPPLY COMPANY TO HAVE BEEN MADE IN A BID WHICH THE COMPANY SUBMITTED TO THE VETERANS ADMINISTRATION.

IN RESPONSE TO INVITATION NO. 58-39, ISSUED ON JANUARY 13, 1958, BY THE VETERANS ADMINISTRATION HOSPITAL, FORT MEADE, SOUTH DAKOTA, FOR CERTAIN TYPES OF STEEL SUPPLIES, THE DAKOTA STEEL AND SUPPLY COMPANY SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHERS, ITEM NO. 28, COVERING TWO PIECES OF SAFETY PLATE, LARGE PATTERN, 1/4 IN. BY 48 IN. BY 12 FT. AT $30 EACH, OR FOR A TOTAL PRICE OF $60. YOU STATE THAT AFTER THE BID OPENING THE DAKOTA STEEL AND SUPPLY COMPANY WAS REQUESTED, BY TELEPHONE, TO VERIFY ITS BID ON ITEM NO. 28, AT WHICH TIME THE COMPANY ADVISED YOUR OFFICE THAT IT HAD MADE AN ERROR IN THE BID AND THAT THE TOTAL PRICE FOR THIS ITEM SHOULD BE $139.50. BY SUBSEQUENT LETTER DATED FEBRUARY 12, 1958, THE DAKOTA STEEL AND SUPPLY COMPANY FURTHER ADVISED THAT IN ESTIMATING ITEM NO. 28 IT HAD, IN THE FIRST INSTANCE, COMPUTED ITS QUOTATION ON A PLATE SIZE 48 IN. BY 120 IN. WEIGHING 450 POUNDS INSTEAD OF THE SPECIFIED SIZE OF 48 IN. BY 12 FT. 0 IN. WEIGHING 540 POUNDS AND, SECONDLY, AFTER ARRIVING AT A NET PRICE OF $60 FOR ONE SHEET, THIS AMOUNT WAS TRANSFERRED FROM THE COMPANY'S WORK SHEET TO THE BID FORM AS A TOTAL AMOUNT FOR THE TWO PIECES OF SAFETY PLATE CALLED FOR. THE DAKOTA STEEL AND SUPPLY COMPANY REQUESTED, IN ITS LETTER OF FEBRUARY 12, 1958, THAT THE BID FOR ITEM NO. 28 BE CHANGED TO $139.50.

ON THE BASIS OF YOUR STATEMENT OF FEBRUARY 17, 1958, IT IS OBVIOUS THAT YOU SUSPECTED AN ERROR ON ITEM NO. 28 OF THE BID OF THE DAKOTA STEEL AND SUPPLY COMPANY AT THE TIME THE BIDS WERE OPENED. UPON YOUR REQUEST FOR VERIFICATION OF THE BID ON THIS ITEM, THE COMPANY IMMEDIATELY AFFIRMED YOUR SUSPICION OF THE ERROR, AND ITS EXPLANATION AS TO HOW THE ERROR OCCURRED APPEARS PLAUSIBLE. THEREFORE, THERE CAN BE LITTLE, IF ANY, DOUBT BUT THAT AN ERROR WAS MADE ON ITEM NO. 28 OF THE BID OF THE DAKOTA STEEL AND SUPPLY COMPANY, AS ALLEGED. ON THE OTHER HAND, IT DOES NOT APPEAR THAT THE INTENDED BID PRICE OF $139.50 IS SUPPORTED WITH SUCH DOCUMENTATION, ETC., AS WOULD WARRANT AN AUTHORIZATION FOR AMENDING THE ORIGINAL BID TO THE ALLEGED INTENDED PRICE OF $139.50.

ACCORDINGLY, THE BID OF THE DAKOTA STEEL AND SUPPLY COMPANY ON ITEM NO. 28 SHOULD BE DISREGARDED.

THE PAPERS, WITH THE EXCEPTION OF YOUR STATEMENT OF THE FACTS DATED FEBRUARY 17, 1958, ARE RETURNED AS REQUESTED.