B-135900, APR. 30, 1958

B-135900: Apr 30, 1958

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WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER. HE AT ONCE NOTED THE PROBABILITY OF AN ERROR IN THE BID SUBMITTED BY THE SUBJECT BIDDER BECAUSE ITS UNIT AND TOTAL PRICES WERE OUT OF LINE WITH THE OTHER BIDS RECEIVED AND WITH YOUR OFFICE ESTIMATE OF $382 FOR THIS AMOUNT OF WORK. THAT THE AGENT REPLIED BY TELEPHONE AND ADVISED THAT HIS COMPANY'S BID WAS IN ERROR. THAT THE QUOTATION SHOULD HAVE BEEN $23.95 PER THOUSAND SETS INSTEAD OF $13.95. THAT THE TOTAL PRICE FOR THIS WORK SHOULD HAVE BEEN $359.29. THAT THE ERROR OCCURRED WHEN THE QUOTATION WAS TRANSMITTED FROM THE HOME OFFICE IN NEW JERSEY TO THE OFFICE IN WASHINGTON. STATING IT WAS DUE TO CLERICAL ERROR WHEN THE INTENDED QUOTATION WAS TYPED FOR TRANSMISSION TO WASHINGTON AND IN SUPPORT OF HIS STATEMENT SUBMITTED HIS COMPANY'S ESTIMATE SHEET TOGETHER WITH A COPY OF THE PRICES TRANSMITTED TO WASHINGTON.

B-135900, APR. 30, 1958

TO HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER, GOVERNMENT PRINTING OFFICE:

REFERENCE I MADE TO YOUR LETTER OF APRIL 21, 1958, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR CONSOLIDATED BUSINESS SYSTEMS, INC., ALLEGES IT MADE IN ITS BID DATED APRIL 2, 1958.

IT APPEARS THAT ON MARCH 24, 1958, YOUR OFFICE ADVERTISED FOR PRICES ON THE PRODUCTION OF 7,500 SETS (PLUS OR MINUS TEN PERCENT) OF A FOUR PART, SINGLE STUB, CARBON-INTERLEAVED SNAPOUT FORM ON EACH OF TWO JACKETS FOR A TOTAL OF 15,000 SETS, SHIPMENT TO BE COMPLETED ON OR BEFORE MAY 9, 1958. IN RESPONSE CONSOLIDATED BUSINESS SYSTEMS, INC., SUBMITTED A BID OF $13.95 PER THOUSAND FOR A TOTAL OF $209.24. FIVE OTHER BIDS RECEIVED RANGED IN PRICE FROM $24 TO $41.38 PER THOUSAND OR FOR TOTALS RANGING FROM $411 TO $620.70.

WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER, HE AT ONCE NOTED THE PROBABILITY OF AN ERROR IN THE BID SUBMITTED BY THE SUBJECT BIDDER BECAUSE ITS UNIT AND TOTAL PRICES WERE OUT OF LINE WITH THE OTHER BIDS RECEIVED AND WITH YOUR OFFICE ESTIMATE OF $382 FOR THIS AMOUNT OF WORK.

IT FURTHER APPEARS THAT THE CONTRACTING OFFICER TELEPHONED THE LOCAL AGENT OF THE BIDDER AND REQUESTED HIM TO REVIEW THE SPECIFICATIONS AND CONFIRM HIS BID PRICE; THAT THE AGENT REPLIED BY TELEPHONE AND ADVISED THAT HIS COMPANY'S BID WAS IN ERROR; THAT THE QUOTATION SHOULD HAVE BEEN $23.95 PER THOUSAND SETS INSTEAD OF $13.95; THAT THE TOTAL PRICE FOR THIS WORK SHOULD HAVE BEEN $359.29; AND THAT THE ERROR OCCURRED WHEN THE QUOTATION WAS TRANSMITTED FROM THE HOME OFFICE IN NEW JERSEY TO THE OFFICE IN WASHINGTON.

BY LETTER OF APRIL 10, 1958, THE PRESIDENT OF THE COMPANY CONFIRMED THE ERROR IN BID, STATING IT WAS DUE TO CLERICAL ERROR WHEN THE INTENDED QUOTATION WAS TYPED FOR TRANSMISSION TO WASHINGTON AND IN SUPPORT OF HIS STATEMENT SUBMITTED HIS COMPANY'S ESTIMATE SHEET TOGETHER WITH A COPY OF THE PRICES TRANSMITTED TO WASHINGTON. THE ESTIMATE SHEET SHOWS THE SUBJECT BIDDER INTENDED TO QUOTE A PRICE OF $23.95 PER THOUSAND SETS WHILE THE TRANSMITTAL SHEET SHOWS THAT THE QUOTATION WAS TYPED AS $13.95 PER THOUSAND SETS.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT THE SUBJECT BIDDER MADE AN ERROR IN ITS BID. IN VIEW OF THE FACT THAT THE ERROR WAS NOTED BY THE CONTRACTING OFFICER WHEN THE BIDS WERE EXAMINED AND SINCE THE BIDDER HAS CONFIRMED AND EXPLAINED THE ERROR TO THE SATISFACTION OF THE CONTRACTING OFFICER, THE BID OF THE CONSOLIDATED BUSINESS SYSTEMS, INC., MAY BE DISREGARDED.

THE PAPERS, WITH THE EXCEPTION OF THE BIDDER'S LETTER OF APRIL 10, 1958, AND THE PRICING SHEET, ARE RETURNED AS REQUESTED.

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