B-136379, JUN. 19, 1958

B-136379: Jun 19, 1958

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PUBLIC PRINTER: REFERENCE IS MADE TO YOUR LETTER OF JUNE 5. IT APPEARS FURTHER THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER HE NOTED THAT THE BID OF THE SUBJECT COMPANY WAS PROBABLY IN ERROR BECAUSE IT WAS SO MUCH LOWER THAN THE NEXT LOW BID OF $11. THAT THE BIDDER REPLIED BY TELEGRAM THE FOLLOWING DAY AND ADVISED THE CONTRACTING OFFICER THAT ITS BID WAS IN ERROR. IN VIEW OF THE FACT THAT THE ERROR WAS NOTED BY THE CONTRACTING OFFICER UPON EXAMINATION OF THE BIDS AND THE COMPANY HAS CONFIRMED AND EXPLAINED THE ERROR TO THE SATISFACTION OF THE CONTRACTING OFFICER. ARE BEING RETURNED AS REQUESTED.

B-136379, JUN. 19, 1958

TO THE HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 5, 1958, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE AMERICAN TAG COMPANY OF NEW JERSEY ALLEGES IT MADE ON ITS BID DATED MAY 21, 1958.

IT APPEARS THAT ON MAY 9, 1958, YOUR OFFICE ADVERTISED FOR PRICES ON THE PRODUCTION OF TWO SIMILAR BUT NOT IDENTICAL BAGGAGE IDENTIFICATION TAGS, TOTAL QUANTITY 3,022,000, TRIM SIZE 3 1/8 TIMES 8 1/2 INCHES, PRINTED FACE AND BACK, ALL SHIPMENTS TO BE COMPLETED ON OR BEFORE JULY 31, 1958. RESPONSE THE AMERICAN TAG COMPANY OF NEW JERSEY SUBMITTED A BID IN THE NET AMOUNT OF $7,343.46. SIX OTHER BIDS RECEIVED RANGED IN PRICE FROM $11,755.58 TO $24,176. IT APPEARS FURTHER THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER HE NOTED THAT THE BID OF THE SUBJECT COMPANY WAS PROBABLY IN ERROR BECAUSE IT WAS SO MUCH LOWER THAN THE NEXT LOW BID OF $11,755.58.

YOU STATE THAT BY TELEGRAM DATED MAY 26, 1958, THE CONTRACTING OFFICER REQUESTED THE SUBJECT BIDDER TO REVIEW THE SPECIFICATIONS AND TO CONFIRM ITS BID PRICE; THAT THE BIDDER REPLIED BY TELEGRAM THE FOLLOWING DAY AND ADVISED THE CONTRACTING OFFICER THAT ITS BID WAS IN ERROR; THAT THE BIDDER'S UNIT PRICE SHOULD BE $3.43 PER THOUSAND TAGS FOR A TOTAL PRICE OF $10,365.46 INSTEAD OF $2.43, FOR A TOTAL PRICE OF $7,343.46 AS QUOTED.

IN A LETTER DATED MAY 28, 1958, THE BIDDER CONFIRMED THE INFORMATION GIVEN IN ITS TELEGRAM AND EXPLAINED THAT DUE TO A TYPING ERROR THE ESTIMATED UNIT PRICE OF $3.43 PER THOUSAND TAGS HAD BEEN ENTERED ON THE BID FORM AS $2.43 AND ENCLOSED THE ESTIMATE SHEET WHICH SHOWS THAT A PRICE OF $3.43 PER THOUSAND HAD BEEN INTENDED.

THE CONTRACTING OFFICER HAS STATED HIS BELIEF THAT AN HONEST ERROR HAS OCCURRED AND THAT $2.43 WOULD NOT BE A FAIR AND REASONABLE PRICE TO PAY FOR THIS WORK.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT THE BIDDER MADE AN ERROR IN ITS BID. IN VIEW OF THE FACT THAT THE ERROR WAS NOTED BY THE CONTRACTING OFFICER UPON EXAMINATION OF THE BIDS AND THE COMPANY HAS CONFIRMED AND EXPLAINED THE ERROR TO THE SATISFACTION OF THE CONTRACTING OFFICER, THE BID OF AMERICAN TAG COMPANY OF NEW JERSEY MAY BE DISREGARDED.

THE PAPERS, WITH THE EXCEPTION OF THE BIDDER'S LETTER OF MAY 28, 1958, ARE BEING RETURNED AS REQUESTED.