B-135645, APR. 7, 1958

B-135645: Apr 7, 1958

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POST OFFICE DEPARTMENT: REFERENCE IS MADE TO YOUR LETTER OF MARCH 26. BIDS WERE REQUESTED FOR FURNISHING 80. THE BID OF AMERICAN STEEL AND WIRE WAS NOT FORWARDED HERE BUT IT APPERS FROM THE ABSTRACT OF BIDS THAT THE COMPANY OFFERED TO FURNISH THE STEEL STRIP AT A PRICE OF $0.108883 PER POUND SUBJECT TO A MAXIMUM 10 PERCENT PRICE ESCALATION. THE ABSTRACT OF BIDS ALSO SHOWS THAT THE THREE OTHER BIDS WERE $0.1295 PER POUND. "FOR YOUR INFORMATION WE ARE INDICATING BELOW THE COMPLETE PRICE BREAKDOWN OF THE SUBJECT MATERIAL: CHART $7.15 BASE 2.30 SIZE 2.65 GALVANIZING .6625 GALVANIZING .25 SKIDS .5253 FREIGHT $13.5378 TOTAL PRICE PER CWT. (?135378 PER POUND) "AS A MATTER OF ADDITIONAL INFORMATION.

B-135645, APR. 7, 1958

TO MR. WHILHO KALLIO, CONTRACTING OFFICER, POST OFFICE DEPARTMENT:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 26, 1958, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE AMERICAN STEEL AND WIRE DIVISION OF THE UNITED STATES STEEL CORPORATION ALLEGES IT MADE IN ITS BID OPENED ON MARCH 11, 1958.

BY INVITATION NO. 2706, BIDS WERE REQUESTED FOR FURNISHING 80,000 POUNDS OF COLD ROLLED STEEL STRIP IN COILS IN ACCORDANCE WITH THE GOVERNMENT'S SPECIFICATIONS. THE BID OF AMERICAN STEEL AND WIRE WAS NOT FORWARDED HERE BUT IT APPERS FROM THE ABSTRACT OF BIDS THAT THE COMPANY OFFERED TO FURNISH THE STEEL STRIP AT A PRICE OF $0.108883 PER POUND SUBJECT TO A MAXIMUM 10 PERCENT PRICE ESCALATION. THE ABSTRACT OF BIDS ALSO SHOWS THAT THE THREE OTHER BIDS WERE $0.1295 PER POUND, $0.1427 PER POUND AND $0.142753 PER POUND (PLUS 10 PERCENT ESCALATOR CLAUSE).

BY LETTER DATED MARCH 21, 1958, AMERICAN STEEL AND WIRE ADVISED YOU AS FOLLOWS:

"INVITATION NO. 2706

BIDS OPENED MARCH 11, 1958

GALVANIZED STRIP

"PLEASE REFER TO OUR BID SUBMITTED ON THE SUBJECT INVITATION AND, IN PARTICULAR TO THE UNIT PRICE OF ?108883 PER POUND INDICATED THEREIN.

"WE REGRET TO ADVISE THAT, IN DEVELOPING A PRICE FOR THIS MATERIAL, WE OMITTED OUR PUBLISHED EXTRA FOR ELECTRO-GALVANIZED FINISH OF $2.65 PER CWT. OR ?0265 PER POUND.

"FOR YOUR INFORMATION WE ARE INDICATING BELOW THE COMPLETE PRICE BREAKDOWN OF THE SUBJECT MATERIAL:

CHART

$7.15 BASE

2.30 SIZE

2.65 GALVANIZING

.6625 GALVANIZING

.25 SKIDS

.5253 FREIGHT

$13.5378 TOTAL PRICE PER CWT.

(?135378 PER POUND)

"AS A MATTER OF ADDITIONAL INFORMATION, THIS PRODUCT REQUIRES EXTRA HEAVY ZINC COATING AND, THEREFORE, TAKES OUR REGULAR $2.65 GALVANIZING EXTRA PLUS AN ADDITIONAL EXTRA OF 25 PERCENT OR .6625 PER CWT. IT WAS IN ASSESSING THESE TWO GALVANIZING EXTRAS THAT WE MADE THIS CLERICAL ERROR.

"WE RESPECTFULLY REQUEST THE ABOVE MODIFICATION IN OUR PRICE BE INCORPORATED IN OUR BID AND THAT THIS OMISSION BE CONSIDERED ON THE GROUNDS OF AN OBVIOUS ERROR. YOUR COOPERATION IN THIS MATTER WILL BE GREATLY APPRECIATED.'

IN RESPONSE TO OUR ORAL REQUEST, THE COMPANY HAS SUBMITTED PHOTOSTATIC COPIES OF ITS WORKSHEET AND PRINTED PRICE LISTS. THE WORKSHEET SHOWS THAT ONLY ONE GALVANIZING CHARGE OF $0.663 WAS INCLUDED IN THE COMPANY'S BID PRICE OF $10.883 PER CWT. THE PRINTED PRICE LIST ALSO APPEARS TO CONFIRM THE COMPANY'S CLAIM OF ERROR.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, THE BID OF AMERICAN STEEL AND WIRE MAY BE DISREGARDED IN MAKING THE AWARD.