B-140903, OCT. 13, 1959

B-140903: Oct 13, 1959

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER (7023/134N2). THE ABSTRACT OF BIDS SHOWS UNIT BIDS WERE RECEIVED ON THE THREE ITEMS. NEW JERSEY YOU STATE THAT AT THE TIME OF OPENING THE BIDS AN ERROR WAS SUSPECTED IN THE UNIT COST OF THE BID OF ZAL INDUSTRIES BECAUSE ITS BID PRICE OF $3.19 APPEARED TO BE OUT OF LINE WHEN COMPARED WITH THE OTHER TWO PROPOSALS. ZAL INDUSTRIES WAS PROMPTLY CONTACTED BY WIRE AND REQUESTED TO VERIFY ITS BID AS TO ITS QUOTED UNIT PRICE. EXPLAINING THAT ITS PRICE WAS QUOTED FOR FURNISHINGA DIFFERENT TYPE BRUSH FOR THE EQUIPMENT THAN THAT CALLED FOR BY VETERANS ADMINISTRATION SPECIFICATION NO. 7106880C. THAT THE UNIT PRICE SHOULD BE CONSIDERABLY INCREASED AS IT IS NOT ABLE TO FURNISH THE REQUIRED EQUIPMENT AT ITS QUOTED UNIT PRICE.

B-140903, OCT. 13, 1959

TO MR. VICTOR J. SCHMITT, CONTRACT SPECIALIST, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER (7023/134N2), DATED SEPTEMBER 29, 1959, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHAT ACTION SHOULD BE TAKEN CONCERNING THE REQUEST OF ZAL INDUSTRIES, JERSEY CITY, NEW JERSEY, THAT ITS PROPOSAL DATED SEPTEMBER 14, 1959, OFFERED IN RESPONSE TO INVITATION FOR BIDS NO. M6-23-60 ISSUED SEPTEMBER 2, 1959, BE CONSIDERED A NONRESPONSIVE BID.

THE INVITATION SOLICITED BIDS--- TO BE OPENED ON SEPTEMBER 16, 1959 -- FOR FURNISHING AND DELIVERING TO SPECIFIED DESTINATIONS DURING THE WEEK OF DECEMBER 7, 1959, THREE ITEMS OF "STOCK NO. 7106880 - BONDING APPLIANCE, ELECTROSTATIC," IN ACCORDANCE WITH VETERANS ADMINISTRATION SPECIFICATION NO. 7106880C, DATED JULY 29, 1959, COPY OF WHICH ACCOMPANIED THE INVITATION.

THE ABSTRACT OF BIDS SHOWS UNIT BIDS WERE RECEIVED ON THE THREE ITEMS, AS FOLLOWS:

TABLE

ITEM NO. ITEM NO. ITEM NO.

NAME OF BIDDER 1 2 3 ZAL INDUSTRIES, $ 3.19 $ 3.19 $ 3.19

JERSEY CITY, NEW JERSEY ELLENCO, INC., $14.75 $15.00 $14.75

WASHINGTON, D.C. LINDE AIR PRODUCTS CO. $24.70 $24.70 $24.70

DIV. UNION CARBIDE AND

CARBON, NEWARK, NEW JERSEY

YOU STATE THAT AT THE TIME OF OPENING THE BIDS AN ERROR WAS SUSPECTED IN THE UNIT COST OF THE BID OF ZAL INDUSTRIES BECAUSE ITS BID PRICE OF $3.19 APPEARED TO BE OUT OF LINE WHEN COMPARED WITH THE OTHER TWO PROPOSALS. ZAL INDUSTRIES WAS PROMPTLY CONTACTED BY WIRE AND REQUESTED TO VERIFY ITS BID AS TO ITS QUOTED UNIT PRICE.

IN REPLY, BY LETTER DATED SEPTEMBER 25, 1959, THE BIDDER ALLEGED AN ERROR IN ITS BID, EXPLAINING THAT ITS PRICE WAS QUOTED FOR FURNISHINGA DIFFERENT TYPE BRUSH FOR THE EQUIPMENT THAN THAT CALLED FOR BY VETERANS ADMINISTRATION SPECIFICATION NO. 7106880C, AND THAT THE UNIT PRICE SHOULD BE CONSIDERABLY INCREASED AS IT IS NOT ABLE TO FURNISH THE REQUIRED EQUIPMENT AT ITS QUOTED UNIT PRICE.

WHILE ZAL INDUSTRIES HAS NOT FULLY EXPLAINED HOW THE ALLEGED ERROR OCCURRED, THERE IS LITTLE DOUBT THAT ITS BID IS ERRONEOUS, AND SINCE YOU BELIEVED THAT ITS BID WAS ERRONEOUS AND SINCE THE ERROR WAS ALLEGED PROMPTLY BY THE BIDDER UPON YOUR REQUEST FOR VERIFICATION AND PRIOR TO AWARD, THE BID OF ZAL INDUSTRIES MAY BE DISREGARDED IN MAKING AWARDS UNDER BID INVITATION NO. M6-23-60.