B-136657, JUL. 15, 1958

B-136657: Jul 15, 1958

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GOVERNMENT PRINTING OFFICE: REFERENCE IS MADE TO YOUR LETTER OF JULY 1. IT APPEARS FURTHER THAT WHEN THE BIDS WERE EXAMINED THE CONTRACTING OFFICER NOTED THAT THE BID OF THE SUBJECT COMPANY WAS PROBABLY IN ERROR BECAUSE IT WAS SO MUCH LOWER THAN THE NEXT LOW BID OF $3. THAT THE COMPANY REPLIED BY TELEGRAM ON THE SAME DAY AND ADVISED THE CONTRACTING OFFICER THAT THE BID WAS BEING REVISED BECAUSE OF AN ERROR OF $1. THE CONTRACTING OFFICER AGAIN TELEPHONED THE COMPANY AND INFORMED IT THAT YOUR OFFICE DID NOT HAVE THE AUTHORITY TO CHANGE THE BID AND THAT IN THE EVENT THE COMPANY DESIRED TO CHANGE OR WITHDRAW ITS BID. THE COST OF VINYL PLASTIC WAS CALCULATED AS 150 SHEETS AT $2.08 PER SHEET FOR A TOTAL PRICE OF $312 WHICH.

B-136657, JUL. 15, 1958

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

REFERENCE IS MADE TO YOUR LETTER OF JULY 1, 1958, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE CARL GORR PRINTING COMPANY ALLEGES IT MADE IN ITS BID, DATED JUNE 16, 1958.

IT APPEARS THAT ON JUNE 6, 1958, YOUR OFFICE ADVERTISED FOR PRICES FOR THE PRODUCTION OF 110,000 SETS OF IDENTIFICATION CARDS; EACH SET CONSISTING OF ONE PRINTED CARD INSERTED BETWEEN VINYL PLASTIC COVERS; TRIM SIZE AS FOLLOWS: CARDS--- 3 5/8 BY 2 3/8 INCHES; COVERS--- 3 7/8 BY 2 5/8 INCHES; SHIPMENT TO BE COMPLETED ON OR BEFORE JULY 18, 1958.

IN RESPONSE THE CARL GORR PRINTING COMPANY, CHICAGO, ILLINOIS, SUBMITTED A BID IN THE NET AMOUNT OF $1,889. FOUR OTHER BIDS RECEIVED RANGED IN PRICE FROM $3,080 TO $4,070. IT APPEARS FURTHER THAT WHEN THE BIDS WERE EXAMINED THE CONTRACTING OFFICER NOTED THAT THE BID OF THE SUBJECT COMPANY WAS PROBABLY IN ERROR BECAUSE IT WAS SO MUCH LOWER THAN THE NEXT LOW BID OF $3,080.

YOU STATE THAT YOU TELEPHONED THE BIDDER ON JUNE 18, 1958, AND REQUESTED THE COMPANY TO REVIEW THE SPECIFICATIONS AND CONFIRM THE BID PRICE; THAT THE COMPANY REPLIED BY TELEGRAM ON THE SAME DAY AND ADVISED THE CONTRACTING OFFICER THAT THE BID WAS BEING REVISED BECAUSE OF AN ERROR OF $1,700 IN VINYL PLASTIC REQUIREMENTS. IN RESPONSE TO THE TELEGRAM, THE CONTRACTING OFFICER AGAIN TELEPHONED THE COMPANY AND INFORMED IT THAT YOUR OFFICE DID NOT HAVE THE AUTHORITY TO CHANGE THE BID AND THAT IN THE EVENT THE COMPANY DESIRED TO CHANGE OR WITHDRAW ITS BID, IT SHOULD SUBMIT A WRITTEN REQUEST GIVING ALL PERTINENT DETAILS CONCERNING THE ERROR IN BID.

BY LETTER DATED JUNE 18, 1958, THE BIDDER STATED AN ERROR HAD OCCURRED IN COMPUTING THE NUMBER OF SHEETS OF VINYL PLASTIC REQUIRED TO COMPLETE THE JOB. WITH THE LETTER THE BIDDER SUBMITTED ITS ESTIMATE SHEETS WHICH SHOW THAT THE ESTIMATOR DID NOT COMPLETE HIS DIVISION WHEN DIVIDING THE TOTAL NUMBER OF TRIMMED PLASTIC SHEETS REQUIRED BY THE NUMBER THAT COULD BE CUT FROM A SINGLE SHEET, 36 BY 48 INCHES IN SIZE RESULTING IN AN ESTIMATE OF 148 SHEETS INSTEAD OF 1,480 SHEETS, THE NUMBER ACTUALLY REQUIRED. THE COST OF VINYL PLASTIC WAS CALCULATED AS 150 SHEETS AT $2.08 PER SHEET FOR A TOTAL PRICE OF $312 WHICH, IF COMPUTED CORRECTLY, WOULD HAVE RESULTED IN A TOTAL PRICE FOR THE VINYL PLASTIC SHEETS OF $3,078.40. THE BIDDER IN REFIGURING THE BID PRICE AND THE COST OF THE VINYL PLASTIC REQUIRED SHOWS ON SHEET THREE THAT HE COULD PRODUCE THIS WORK FROM 2,400 SHEETS OF VINYL PLASTIC, SIZE 21 BY 50 INCHES, AT A COST OF $0.78 PER SHEET OR A TOTAL PRICE OF $1,872. BY SUBTRACTING THE COST OF THE VINYL PLASTIC INCLUDED IN THE BID ($312) FROM THE REVISED COST ($1,872), THE BIDDER SHOWS AN ERROR OF $1,560 TO WHICH HE HAS ADDED A 10 PERCENT HANDLING CHARGE TO ARRIVE AT AN ERROR OF $1,700 IN HIS BID PRICE.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT THE COMPANY 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 PRIOR TO AWARD, THE BID OF CARL GORR PRINTING COMPANY MAY BE DISREGARDED.

THE PAPERS, WITH THE EXCEPTION OF THE COMPANY'S LETTER DATED JUNE 18, 1958, AND THE TELEGRAM OF ..END :