B-136500, JUN. 26, 1958

B-136500: Jun 26, 1958

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DEPARTMENT OF THE INTERIOR: REFERENCE IS MADE TO YOUR LETTER OF JUNE 19. AWARD WILL BE MADE ON "ALL OR NONE" BASIS FOR ITEMS 1A. THAT A TYPOGRAPHICAL ERROR HAD BEEN MADE BY ITS TYPIST AND THAT THE CORRECT PRICE FOR ITEM 1B IS $133. SINCE THE EQUIPMENT COVERED BY ITEMS 1A AND 1B IS IDENTICAL. IT IS OBVIOUS THAT THE FEDERAL SCIENTIFIC COMPANY DID NOT INTEND TO OFFER THE EQUIPMENT COVERED BY ITEM 1B AT A PRICE SUBSTANTIALLY LOWER THAN THE PRICE QUOTED BY IT FOR ITEM 1A.

B-136500, JUN. 26, 1958

TO MR. L. M. STRAUB, ASSISTANT PROCUREMENT OFFICER, GEOLOGICAL SURVEY, DEPARTMENT OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 19, 1958, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE FEDERAL SCIENTIFIC COMPANY, SILVER SPRING, MARYLAND, ALLEGES IT MADE IN ITS BID OPENED ON JUNE 10, 1958.

IN RESPONSE TO INVITATION NO. 2602, THE FEDERAL SCIENTIFIC COMPANY SUBMITTED A BID DATED JUNE 3, 1958, IN PART, AS FOLLOWS:

TABLE

"1. VACUUM PUMP, WELCH DUO-SEAL MODEL

1400-B, OR EQUAL, COMPLETE WITH

1/3 HORSEPOWER MOTOR, PULLEYS,

"V" BELT, SUPPLY OF OIL, CORD,

SNAP SWITCH AND PLUG, FOR 115 VOLT,

60 CYCLE A.C. CURRENT, HOUSING TO

BE CAST IRON, MOUNTED ON SUBSTANTIAL

METAL BASE, TO BE QUIET IN OPERATION 1.A. FOR DELIVERY TO: U.S. GEOLOGICAL

SURVEY, BUILDING

14, BUREAU OF

STANDARDS, WASHINGTON

25, D.C.

9 EACH $133.00 $1197.00

------- -------- 1.B. FOR DELIVERY TO: U.S. GEOLOGICAL

SURVEY, BUILDING

213, NAVAL GUN FACTORY

WASHINGTON 25, D. C.

3 EACH $ 15.00 $ 45.00

2. BELT GUARD FOR ABOVE 3 EACH $ 15.00 $ 45.00

------- -------- TOTAL COST OF ITEMS 1A, 1B, AND 2 INCLUSIVE ...............$1287.00

-------- AWARD WILL BE MADE ON "ALL OR NONE" BASIS FOR ITEMS 1A, 1B, AND 2 INCLUSIVE.'

UPON BEING REQUESTED TO VERIFY ITS BID PRICE OF $15 EACH FOR THE PUMPS COVERED BY ITEM 1B, THE FEDERAL SCIENTIFIC COMPANY ADVISED BY LETTER DATED JUNE 13, 1958, THAT A TYPOGRAPHICAL ERROR HAD BEEN MADE BY ITS TYPIST AND THAT THE CORRECT PRICE FOR ITEM 1B IS $133--- THE SAME PRICE AS QUOTED BY IT FOR THE IDENTICAL PUMP COVERED BY ITEM 1A. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED THE PRINTED PRICE LIST OF ITS SUPPLIER AND ITS WORKSHEET IN THE FORM OF A COPY OF THE INVITATION. THE WORKSHEET SHOWS A UNIT PRICE OF $133 FOR ITEM 1B AND THE SUPPLIER'S PRINTED PRICE LIST SPECIFIES FOR A WELCH DUO-SEAL NO. 1400 B PUMP THE SAME PRICE OF $133--- THE PRICE THE COMPANY ALLEGES IT INTENDED QUOTING FOR ITEM 1B.

THE ABSTRACT OF BIDS SHOWS THAT NINE OF THE TEN OTHER BIDDERS ON THE EQUIPMENT QUOTED AN IDENTICAL AGGREGATE BID PRICE OF $1,641 FOR ITEMS 1A, 1B AND 2 AND THAT THE TENTH BIDDER QUOTED AN AGGREGATE BID PRICE OF $1,725. IT ALSO SHOWS THAT EACH OF THESE BIDDERS QUOTED AN IDENTICAL PRICE FOR BOTH ITEMS 1A AND 1B. SINCE THE EQUIPMENT COVERED BY ITEMS 1A AND 1B IS IDENTICAL, IT IS OBVIOUS THAT THE FEDERAL SCIENTIFIC COMPANY DID NOT INTEND TO OFFER THE EQUIPMENT COVERED BY ITEM 1B AT A PRICE SUBSTANTIALLY LOWER THAN THE PRICE QUOTED BY IT FOR ITEM 1A. ACCORDINGLY, THE COMPANY'S BID SHOULD BE DISREGARDED IN MAKING THE AWARD OF THE CONTRACT.