B-135308, MAR. 5, 1958

B-135308: Mar 5, 1958

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

UNITED STATES GOVERNMENT PRINTING OFFICE: I HAVE YOUR LETTER OF FEBRUARY 24. 000 PADS (PLUS OR MINUS TEN PERCENT) OF A SPECIALLY TREATED CARBON FORM WHICH WILL PERMIT DUPLICATION WITHOUT THE USE OF SEPARATE CARBON PAPER. BIDS WERE OPENED FEBRUARY 10. WHICH WAS SUBMITTED BY O. THREE ADDITIONAL BIDS WERE RECEIVED IN THE AMOUNTS OF $2. THE COMPANY WAS REQUESTED BY TELEGRAM TO REVIEW THE SPECIFICATIONS AND CONFIRM THE BID PRICE. THE BIDDER TELEPHONED STATING THAT HIS BID WAS ERRONEOUS BECAUSE THE COST OF PAPER HAD BEEN OMITTED FROM THE QUOTATIONS. THE ERROR WAS FORMALLY CONFIRMED BY MR. AN ESTIMATE SHEET ENCLOSED WITH HIS LETTER APPEARS TO SUPPORT THE CONTENTION THAT THE COST OF PAPER WAS NOT INCLUDED IN THE BID QUOTATION.

B-135308, MAR. 5, 1958

TO PUBLIC PRINTER, UNITED STATES GOVERNMENT PRINTING OFFICE:

I HAVE YOUR LETTER OF FEBRUARY 24, 1958, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER A BID DATED FEBRUARY 5, 1958, SUBMITTED BY O. L. SCHILFFARTH AND COMPANY, MILWAUKEE, WISCONSIN, MAY BE DISREGARDED IN VIEW OF THE BIDDER'S ALLEGATION OF ERROR.

ON JANUARY 28, 1958, AN INVITATION TO BID, IDENTIFIED BY GPO JACKET NUMBER 453153, SOLICITED PRICES FOR PRODUCTION OF 5,000 PADS (PLUS OR MINUS TEN PERCENT) OF A SPECIALLY TREATED CARBON FORM WHICH WILL PERMIT DUPLICATION WITHOUT THE USE OF SEPARATE CARBON PAPER. BIDS WERE OPENED FEBRUARY 10, 1958. THE LOW BID, WHICH WAS SUBMITTED BY O. L. SCHILFFARTH AND COMPANY, OFFERED TO FURNISH 5,000 PADS, IN PROPER FORMAT AND STYLE, AT A PRICE OF $475. THREE ADDITIONAL BIDS WERE RECEIVED IN THE AMOUNTS OF $2,159, $2,225 AND $2,350. AT THE TIME OF EXAMINATION OF BIDS THE CONTRACTING OFFICER NOTED THE WIDE DISPARITY BETWEEN THE SCHILFFARTH BID AS OPPOSED TO THE THREE OTHERS SUBMITTED, AND ON FEBRUARY 11, 1958, BASED UPON HIS OBSERVATIONS, THE COMPANY WAS REQUESTED BY TELEGRAM TO REVIEW THE SPECIFICATIONS AND CONFIRM THE BID PRICE. ON FEBRUARY 14, 1958, THE BIDDER TELEPHONED STATING THAT HIS BID WAS ERRONEOUS BECAUSE THE COST OF PAPER HAD BEEN OMITTED FROM THE QUOTATIONS. THE ERROR WAS FORMALLY CONFIRMED BY MR. SCHILFFARTH IN HIS LETTER TO YOU OF FEBRUARY 15, 1958. AN ESTIMATE SHEET ENCLOSED WITH HIS LETTER APPEARS TO SUPPORT THE CONTENTION THAT THE COST OF PAPER WAS NOT INCLUDED IN THE BID QUOTATION.

BASED UPON THE FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT A BONA FIDE ERROR WAS MADE AS ALLEGED BY THE BIDDER. THE CONTRACTING OFFICER BELIEVED THE SCHILFFARTH BID TO BE IN ERROR AFTER HE COMPARED THAT QUOTATION WITH THE THREE OTHER BIDS AT THE TIME ALL WERE OPENED. THE ACTION OF YOUR AGENCY IN TELEGRAPHING THE COMPANY FOR VERIFICATION WAS PREDICATED UPON THE ASSUMPTION THAT THE SCHILFFARTH BID WAS MANIFESTLY DEFECTIVE; THIS, IN TURN, WAS AFFIRMED BY THE COMPANY PRIOR TO AWARD. NOTICE OF ERROR SATISFACTORILY EXPLAINED BY THE BIDDER BEFORE AWARD PRECLUDES THE GOVERNMENT FROM ACCEPTING THE BID AND FORECLOSES ESTABLISHMENT OF ANY CONTRACTUAL RELATIONSHIP WITH THE BIDDER. THE SCHILFFARTH BID MUST THEREFORE BE DISREGARDED.

THE PAPERS SPECIFIED IN YOUR LETTER OF FEBRUARY 24, 1958, ARE RETURNED AS REQUESTED.