B-136887, AUG. 1, 1958

B-136887: Aug 1, 1958

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GOVERNMENT PRINTING OFFICE: REFERENCE IS MADE TO YOUR LETTER DATED JULY 21. THE FOLLOWING BIDS WERE RECEIVED: CHART FOOTE AND DAVIES. 230 YOU STATE THAT AFTER BIDS WERE OPENED ON JULY 8. WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER. BECAUSE THEY WERE SO MUCH LOWER THAN THE NEXT LOW BID OF $6. REPLIED BY TELEPHONE ON THE SAME DAY ADVISING THE CONTRACTING OFFICER THAT ITS BID WAS IN ERROR AND THAT THE ERROR WAS DUE TO ITS ESTIMATING DEPARTMENT MISINTERPRETING THE SPECIFICATIONS TO MEAN 30. IN LETTER OF THE SAME DAY THE BIDDER CONFIRMED ITS TELEPHONE CONVERSATION AS TO THE ERROR AND EXPLAINED THAT THE MOUNTING AND EASELING WORK WAS TO BE SUBCONTRACTED AND THE ESTIMATE SHEET WOULD SHOW A PRICE WAS QUOTED FOR MOUNTING 30.

B-136887, AUG. 1, 1958

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

REFERENCE IS MADE TO YOUR LETTER DATED JULY 21, 1958, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER THE BIDS OF FOOTE AND DAVIES, INC., ATLANTA, GEORGIA, AND STROMBERG-ALLEN AND COMPANY, CHICAGO, ILLINOIS, MAY BE DISREGARDED BECAUSE OF ALLEGED ERRORS IN THE BIDS.

ON JUNE 25, 1958, THE GOVERNMENT PRINTING OFFICE ADVERTISED, UNDER JACKET NO. 468324, FOR PRICES ON THE PRODUCTION OF 105,000 POSTERS, TRIM SIZE 14 BY 18 INCHES, PRINTED IN 2 COLORS ON ONE SIDE ONLY, MOUNTED ON 14-PLY CARDBOARD WITH 30,000 COPIES FIRMLY GLUED TO CARDBOARD EASELS, SHIPMENT TO BE COMPLETED ON OR BEFORE AUGUST 15, 1958. IN RESPONSE THERETO, THE FOLLOWING BIDS WERE RECEIVED:

CHART

FOOTE AND DAVIES, INC................................. $ 3,780

STROMBERG-ALLEN AND COMPANY........................... 4,250

MACNAUGHTON LITHOGRAPH COMPANY........................ 6,246

LUTZ AND SHEINKMAN.................................... 6,292

MAJESTIC PRESS, INC................................... 7,755

THE A. L. GARBER CO................................... 7,880

THE GUGLER LITHOGRAPHIC CO............................ 7,943

HARRISON AND SMITH COMPANY............................ 8,445

EDWARDS AND DEUTSCH LITHOGRAPHING CO.................. 10,230

YOU STATE THAT AFTER BIDS WERE OPENED ON JULY 8, 1958, AND WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER, HE IMMEDIATELY NOTED THE PROBABILITY OF ERROR IN THE BIDS SUBMITTED BY FOOTE AND DAVIES, INC., AND OF STROMBERG-ALLEN AND COMPANY, BECAUSE THEY WERE SO MUCH LOWER THAN THE NEXT LOW BID OF $6,246 AND THE GOVERNMENT PRINTING OFFICE ESTIMATE OF $6,600 FOR THIS WORK. ACCORDINGLY, ON JULY 10, 1958, THE CONTRACTING OFFICER BY TELEGRAM REQUESTED FOOTE AND DAVIES, INC., AND STROMBERG-ALLEN AND COMPANY, RESPECTIVELY, TO REVIEW THE SPECIFICATIONS AND CONFIRM ITS BID PRICE.

FOOTE AND DAVIES, INC., REPLIED BY TELEPHONE ON THE SAME DAY ADVISING THE CONTRACTING OFFICER THAT ITS BID WAS IN ERROR AND THAT THE ERROR WAS DUE TO ITS ESTIMATING DEPARTMENT MISINTERPRETING THE SPECIFICATIONS TO MEAN 30,000 COPIES MOUNTED AND EASELED WITH THE REMAINING QUANTITY TO BE SIMPLY SHEETS. IN LETTER OF THE SAME DAY THE BIDDER CONFIRMED ITS TELEPHONE CONVERSATION AS TO THE ERROR AND EXPLAINED THAT THE MOUNTING AND EASELING WORK WAS TO BE SUBCONTRACTED AND THE ESTIMATE SHEET WOULD SHOW A PRICE WAS QUOTED FOR MOUNTING 30,000 COPIES ONLY. IT WAS ALSO STATED THAT THE BID PRICE SHOULD HAVE BEEN $7,629 INSTEAD OF THE $3,780 QUOTED. THE ORIGINAL ESTIMATE SHEET FORWARDED WITH THE BIDDER'S LETTER SUBSTANTIATES THE ALLEGED ERROR.

STROMBERG-ALLEN AND COMPANY, THE SECOND LOW BIDDER, ALSO TELEPHONED THE CONTRACTING OFFICER PROMPTLY ON JULY 10, AND ADVISED THAT ITS BID WAS IN ERROR BECAUSE THE SPECIFICATIONS HAD BEEN INTERPRETED TO MEAN THAT ONLY 30,000 COPIES WERE TO BE MOUNTED AND EASELED. THE COMPANY CONFIRMED ITS TELEPHONE CONVERSATION WITH THE CONTRACTING OFFICER IN A LETTER OF THE SAME DATE, AND FORWARDED THEREWITH ITS ESTIMATE SHEET WHICH SHOWS THAT THE BID WAS COMPUTED ON THE BASIS OF MOUNTING AND EASELING 30,000 COPIES AND FURNISHING 75,000 COPIES ON PAPER ONLY UNMOUNTED.

YOU ALSO STATE THAT THE THIRD LOW BIDDER HAS CONFIRMED THAT ITS BID WAS COMPUTED ON THE BASIS OF MOUNTING ALL 105,000 POSTERS AND THAT 30,000 COPIES OF THESE WERE TO BE GLUED TO EASELS.

ON THE RECORD, THERE IS NO ROOM FOR DOUBT THAT THE TWO LOW BIDDERS MADE ERRORS IN THEIR BIDS DUE TO THE SAME MISINTERPRETATION OF THE ADVERTISED SPECIFICATIONS, AS ALLEGED. ACCORDINGLY, SINCE IT WAS BELIEVED THAT THE BIDS WERE ERRONEOUS AND SUCH BELIEF WAS CONFIRMED AND THE ERRORS SATISFACTORILY EXPLAINED BY EACH BIDDER PRIOR TO AWARD, THE BIDS OF FOOTE AND DAVIES, INC., AND STROMBERG-ALLEN AND COMPANY MAY BE DISREGARDED.

THE PAPERS SUBMITTED WITH YOUR LETTER, EXCEPT THE CORRESPONDENCE FROM THE BIDDERS PERTAINING TO THE ERRORS IN BID, ARE RETURNED.