B-136429, JUN. 23, 1958

B-136429: Jun 23, 1958

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VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER OF JUNE 10. THE INVITATION REQUIRED THAT THE GOVERNMENT WOULD MAKE INSPECTION OF THE FINISHED PRODUCT PRIOR TO DELIVERY AND THAT THE BIDDER FURNISH THE NAME AND ADDRESS OF THE FACTORY WHERE THE FINISHED PRODUCT WAS TO BE INSPECTED. IT APPEARS THAT THE ARLINGTON SALES AGENCY FAILED TO INDICATE IN ITS BID WHERE THE MATERIALS WERE TO BE AVAILABLE FOR INSPECTION. TELEGRAM WAS TRANSMITTED TO THE BIDDER REQUESTING THIS INFORMATION TO WHICH IT REPLIED AS FOLLOWS: "REPLYING TO YOUR TELEGRAM OF JUNE 3. WE VERY MUCH REGRET TO ADVISE THAT THE PRICE WE QUOTED WAS BASED ON DELIVERY TO SOMERVILLE. WE BELIEVE THAT THIS ERROR IS READILY APPARENT AND WE WOULD APPRECIATE IT VERY MUCH IF YOU WOULD PERMIT US TO WITHDRAW OUR BID ON THIS ITEM.

B-136429, JUN. 23, 1958

TO MR. C. S. KOONS, CHIEF, MARKETING DIVISION, LABORATORY AND PMR SUPPLY, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 10, 1958, WITH ENCLOSURES, YOUR FILE 7018-134P, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE ARLINGTON SALES AGENCY, INC., NEW YORK 56, NEW YORK, ALLEGES IT MADE IN ITS BID DATED MAY 29, 1958.

IN RESPONSE TO INVITATION TO BID NO. M7-14-9, DATED MAY 13, 1958, THE ARLINGTON SALES AGENCY, INC., SUBMITTED ITS BID OFFERING TO FURNISH A LARGE QUANTITY OF PAPER BUTTER CHIPS UNDER ITEM 1 AT A PRICE OF $0.32 PER CARTON. THE ABSTRACT OF BIDS SHOWS SIX OTHER BIDS RECEIVED UNDER ITEM 1 RANGED FROM $0.4349 TO $0.60, DELIVERY TO BE MADE TO WILMINGTON, CALIFORNIA.

THE INVITATION REQUIRED THAT THE GOVERNMENT WOULD MAKE INSPECTION OF THE FINISHED PRODUCT PRIOR TO DELIVERY AND THAT THE BIDDER FURNISH THE NAME AND ADDRESS OF THE FACTORY WHERE THE FINISHED PRODUCT WAS TO BE INSPECTED. IT APPEARS THAT THE ARLINGTON SALES AGENCY FAILED TO INDICATE IN ITS BID WHERE THE MATERIALS WERE TO BE AVAILABLE FOR INSPECTION. TELEGRAM WAS TRANSMITTED TO THE BIDDER REQUESTING THIS INFORMATION TO WHICH IT REPLIED AS FOLLOWS:

"REPLYING TO YOUR TELEGRAM OF JUNE 3, WITH REGARD TO OUR BID ON ITEM 1, INVITATION NO. M7-14-9, WE VERY MUCH REGRET TO ADVISE THAT THE PRICE WE QUOTED WAS BASED ON DELIVERY TO SOMERVILLE, NEW JERSEY RATHER THAN TO WILMINGTON, CALIFORNIA.

"INASMUCH AS WE QUOTED A PRICE OF .34 M FOR DELIVERY TO HINES, ILLINOIS, WE BELIEVE THAT THIS ERROR IS READILY APPARENT AND WE WOULD APPRECIATE IT VERY MUCH IF YOU WOULD PERMIT US TO WITHDRAW OUR BID ON THIS ITEM. REGRET THAT WE DO NOT HAVE ANY FACILITIES FOR MAKING SHIPMENT OF THIS ITEM TO THE WEST COAST.'

THE CORPORATION'S BID INDICATES THAT IT OFFERED TO DELIVER UNDER ITEM 1, 8,400 CARTONS OF PAPER BUTTER CHIPS TO WILMINGTON, CALIFORNIA, AT A PRICE OF $0.32 PER CARTON AND TO DELIVER UNDER ITEM 2, 12,000 CARTONS TO HINES, ILLINOIS, AT A PRICE OF $0.34 PER CARTON. ERROR SEEMS APPARENT ON THE FACE OF THE BID OF THE CORPORATION SINCE IT IS OBVIOUS THAT THE CORPORATION, WHOSE PLACE OF BUSINESS IS LOCATED AT NEW YORK, NEW YORK, WOULD NOT HAVE QUOTED A LOWER PRICE FOR DELIVERIES TO WILMINGTON, CALIFORNIA, ITEM 1, THAN IT DID FOR SHORTER DELIVERIES TO HINES, ILLINOIS, ITEM 2. ALSO, IT IS NOTED THAT THE OTHER EAST COAST BIDDERS QUOTED A HIGHER PRICE FOR ITEM 1 THAN FOR ITEM 2.

ON THE RECORD, THERE APPEARS LITTLE ROOM FOR DOUBT THAT THE CORPORATION MADE A BONA FIDE ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, THE BID OF THE ARLINGTON SALES AGENCY, INC., AS TO ITEM 1 MAY BE DISREGARDED IN MAKING THE AWARD.

THE PAPERS, WITH THE EXCEPTION OF THE CORPORATION'S LETTER OF JUNE 4, 1958, ARE RETURNED AS REQUESTED.