B-140191, JUL. 22, 1959

B-140191: Jul 22, 1959

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UNITED STATES TREASURY DEPARTMENT: REFERENCE IS MADE TO YOUR LETTER (C:AD:O:P). MAY HAVE ERRED IN SUBMITTING THE COST OF THE REQUIRED RAILWAY EXPRESS PROTECTIVE SIGNATURE SERVICE. WHICH WAS LISTED AS A SEPARATE ITEM BY EACH BIDDER. THE NOONAN BUSINESS FORMS COMPANY WAS. STATED THAT THROUGH A MISINTERPRETATION OF THE SPECIFICATIONS THAT PART OF ITS BID RELATING TO TRANSPORTATION COSTS WAS IN ERROR AND REQUESTED PERMISSION TO WITHDRAW ITS BID. THE BIDDER EXPLAINED IN DETAIL HOW THE ERROR OCCURRED AND THAT ITS CORRECT BID FOR "PROTECTIVE SERVICE" FREIGHT COST SHOULD HAVE BEEN "0.66 CENTS PER M" INSTEAD OF "0.20 CENTS PER M" ON WHICH ITS BID PRICE WAS FIGURED. SINCE YOU BELIEVED THAT THE BID OF NOONAN BUSINESS FORMS COMPANY WAS ERRONEOUS AND SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED BY THE BIDDER PRIOR TO AWARD.

B-140191, JUL. 22, 1959

TO MR. FRANKLIN L. THATCHER, CONTRACTING OFFICER, UNITED STATES TREASURY DEPARTMENT:

REFERENCE IS MADE TO YOUR LETTER (C:AD:O:P), DATED JULY 10, 1959, WITH ENCLOSURES, REQUESTING A DECISION CONCERNING AN ERROR WHICH NOONAN BUSINESS FORMS COMPANY, WASHINGTON, D.C., ALLEGES IT MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. 34 (FY-59).

INVITATION NO. 34 (FY-59), ISSUED JUNE 16, 1959, BY THE TREASURY DEPARTMENT, INTERNAL REVENUE SERVICE, AND MAILED TO OVER 30 PROSPECTIVE BIDDERS, SOLICITED BIDS FOR PRICES FOR THE PRODUCTION OF 1,500,000COPIES OF FORM 1-A, A MARGINALLY PUNCHED ASSEMBLY, AND DELIVERY THEREOF AS SPECIFIED IN THE INVITATION.

YOU STATE THAT AN EXAMINATION AND COMPARISON OF THE BIDS RECEIVED SHOWED THAT THE LOW BIDDER, NOONAN BUSINESS FORMS COMPANY, MAY HAVE ERRED IN SUBMITTING THE COST OF THE REQUIRED RAILWAY EXPRESS PROTECTIVE SIGNATURE SERVICE, THE BID PRICES FOR THIS SERVICE, WHICH WAS LISTED AS A SEPARATE ITEM BY EACH BIDDER, BEING AS FOLLOWS:

TABLE

NOONAN BUSINESS FORMS COMPANY . . . . . . $311.65

PHILIP HANO CO., INC. . . . . . . . . . 982.87

THE STANDARD REGISTER COMPANY . . . . . 825.00

THE EGRY REGISTER COMPANY . . . . . . . 891.04.

THE NOONAN BUSINESS FORMS COMPANY WAS, THEREFORE, REQUESTED TO VERIFY ITS BID, AND IN REPLY THE COMPANY IN A LETTER DATED JULY 1, 1959, STATED THAT THROUGH A MISINTERPRETATION OF THE SPECIFICATIONS THAT PART OF ITS BID RELATING TO TRANSPORTATION COSTS WAS IN ERROR AND REQUESTED PERMISSION TO WITHDRAW ITS BID. IN LETTER DATED JULY 7, 1959, THE BIDDER EXPLAINED IN DETAIL HOW THE ERROR OCCURRED AND THAT ITS CORRECT BID FOR "PROTECTIVE SERVICE" FREIGHT COST SHOULD HAVE BEEN "0.66 CENTS PER M" INSTEAD OF "0.20 CENTS PER M" ON WHICH ITS BID PRICE WAS FIGURED, AND THAT SHOULD IT BE COMPELLED TO PRODUCE AND SHIP THE FORMS IN ACCORDANCE WITH THE SPECIFICATIONS AS IT NOW CORRECTLY UNDERSTANDS THEM, THE SHIPPING BY RAILWAY EXPRESS PROTECTIVE SIGNATURE SERVICE WOULD RESULT IN A SUBSTANTIAL MONETARY LOSS TO THE COMPANY. THE COMPANY AGAIN REQUESTED THAT IT BE PERMITTED TO WITHDRAW ITS BID.

THE RECORD LEAVES LITTLE, IF ANY, DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE YOU BELIEVED THAT THE BID OF NOONAN BUSINESS FORMS COMPANY WAS ERRONEOUS AND SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED BY THE BIDDER PRIOR TO AWARD, ITS BID MAY BE DISREGARDED IN MAKING THE AWARD.