B-140892, OCT. 8, 1959

B-140892: Oct 8, 1959

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TO HONORABLE RAYMOND BLATTENBERGER: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 30. YOU STATE THAT BIDS WERE OPENED AT 11:00 A.M. THAT A NOTICE OF AWARD WAS PREPARED DURING THE AFTERNOON OF THE DAY OF THE BID OPENING AND MAILED TO THE MCGREGOR CARBON FORMS COMPANY. THAT THE CORRECT PRICE FOR THE FORMS IS $21.40 PER THOUSAND SETS. YOU STATE THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER. THE POSSIBILITY OF ERROR IN ANY OF THE BIDS WAS NOT CONSIDERED. IT IS ALSO STATED THAT THE CONTRACTING OFFICER HAS ADVISED THAT THE BID FROM THE MCGREGOR CARBON FORMS COMPANY IS OBVIOUSLY IN ERROR AND THAT HE SHOULD HAVE NOTED THE ERROR PRIOR TO MAKING AWARD. HE WOULD HAVE QUESTIONED THE PRICE QUOTED BY THE MCGREGOR CARBON FORMS COMPANY IN ITS BID PRIOR TO ITS ACCEPTANCE.

B-140892, OCT. 8, 1959

TO HONORABLE RAYMOND BLATTENBERGER:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 30, 1959, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE MCGREGOR CARBON FORMS COMPANY ALLEGES IT MADE IN ITS BID DATED SEPTEMBER 21, 1959.

THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS UNDER JACKET NO. 523663 FOR THE PRODUCTION OF ONE MILLION SINGLE-STUB CARBON INTERLEAVED SETS, DETACHED SIZE 8 1/2 BY 11 INCHES, 7-PART, PAPER AND CARBON TO BE FURNISHED BY THE CONTRACTOR, AND SHIPMENT TO BE F.O.B. DESTINATION, 300,000 SETS ON OR BEFORE OCTOBER 28, 1959, AND COMPLETE SHIPMENT ON OR BEFORE NOVEMBER 23, 1959. IN RESPONSE THE MCGREGOR CARBON FORMS COMPANY SUBMITTED A BID DATED SEPTEMBER 21, 1959, OFFERING TO FURNISH THE FORMS AT A PRICE OF $18.20 PER THOUSAND SETS OR FOR A TOTAL PRICE OF $18,200. THE LIST OF BIDS IN YOUR LETTER SHOWS THAT THE SIX OTHER BIDDERS ON THE FORMS QUOTED PRICES RANGING FROM $22,480 TO $44,800.

YOU STATE THAT BIDS WERE OPENED AT 11:00 A.M. ON SEPTEMBER 22, 1959; THAT A NOTICE OF AWARD WAS PREPARED DURING THE AFTERNOON OF THE DAY OF THE BID OPENING AND MAILED TO THE MCGREGOR CARBON FORMS COMPANY; AND THAT ON THE MORNING OF SEPTEMBER 23, 1959, A REPRESENTATIVE OF THE MCGREGOR CARBON FORMS COMPANY TELEPHONED THE CONTRACTING OFFICER AND ADVISED HIM THAT AN ERROR HAD BEEN MADE IN THE COMPANY'S BID TO THE EXTENT THAT ONLY ONE-HALF OF THE CARBON PAPER NECESSARY TO PRODUCE THE JOB HAD BEEN INCLUDED IN ITS BID PRICE.

IN A CONFIRMING LETTER DATED SEPTEMBER 25, 1959, THE COMPANY STATED THAT IT HAD MADE AN ERROR OF $3,200 IN COMPUTING ITS BID PRICE; THAT IT HAD ERRONEOUSLY ESTIMATED THAT 2,300,000 FEET OF CARBON RATHER THAN 4,675,000 FEET OF CARBON WOULD BE REQUIRED FOR THE JOB; THAT THE REQUIRED AMOUNT OF CARBON FOR THE JOB WOULD COST $6,282; AND THAT THE CORRECT PRICE FOR THE FORMS IS $21.40 PER THOUSAND SETS, MAKING A TOTAL PRICE OF $21,400 FOR THE JOB. THE COMPANY REQUESTED THAT IT BE RELIEVED FROM ANY OBLIGATION UNDER ITS BID AND IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED ITS ESTIMATE SHEET.

YOU STATE THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER, THE POSSIBILITY OF ERROR IN ANY OF THE BIDS WAS NOT CONSIDERED. IT IS ALSO STATED THAT THE CONTRACTING OFFICER HAS ADVISED THAT THE BID FROM THE MCGREGOR CARBON FORMS COMPANY IS OBVIOUSLY IN ERROR AND THAT HE SHOULD HAVE NOTED THE ERROR PRIOR TO MAKING AWARD; AND THAT TO REQUIRE THE COMPANY TO PRODUCE THE WORK AT THE PRICE QUOTED WOULD WORK A HARDSHIP ON THEM.

THE RECORD INDICATES THAT HAD THE CONTRACTING OFFICER TAKEN THE TIME TO PROPERLY EVALUATE THE BIDS RECEIVED ON THE FORMS, HE WOULD HAVE QUESTIONED THE PRICE QUOTED BY THE MCGREGOR CARBON FORMS COMPANY IN ITS BID PRIOR TO ITS ACCEPTANCE. IT IS REPORTED THAT NO PURCHASE ORDERS FOR THE ITEMS IN QUESTION HAVE BEEN PLACED WITH THE MCGREGOR CARBON FORMS COMPANY. THE AWARD INVOLVED MAY ACCORDINGLY BE CANCELED WITHOUT LIABILITY TO THE COMPANY.

THE PAPERS, WITH THE EXCEPTION OF THE COMPANY'S LETTER OF SEPTEMBER 25, 1959, AND ITS ESTIMATE SHEET, ARE RETURNED.