B-140947, OCT. 14, 1959

B-140947: Oct 14, 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 HOSPITAL: REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 5. THE BID WAS BELIEVED TO BE IN ERROR BECAUSE IT WAS VERY LOW WHEN COMPARED WITH THE OTHER NINE BIDS MEETING SPECIFICATIONS WHICH RANGED IN PRICE FROM $2. THE FIRM ADVISED THAT IN TRANSFERRING THE PRICE FROM ITS WORK SHEETS TO THE BID FORM AN ERROR WAS MADE IN THAT $2. 087 WAS TYPED INSTEAD OF $3. THE THERMOFAXED COPIES OF THE WORK SHEETS SUBMITTED BY THE FIRM SHOW THAT THE PRICE WAS ARRIVED AT BY ADDING TO ITS SUPPLIER'S $2. SINCE THE BID WAS BELIEVED TO BE ERRONEOUS AND UPON REQUEST FOR VERIFICATION THE BIDDER CONFIRMED THIS BELIEF AND SATISFACTORILY ESTABLISHED THE ERROR AND THE INTENDED PRICE BEFORE AWARD.

B-140947, OCT. 14, 1959

TO MR. M. L. ROY, VETERANS ADMINISTRATION HOSPITAL:

REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 5, 1959, WITH ENCLOSURES, REQUESTING A DECISION ON THE ALLEGATION BY A. L. CAHN AND SONS, INC., NEW YORK, NEW YORK, OF AN ERROR IN BID UPON YOUR REQUEST FOR VERIFICATION.

A. L. CAHN AND SONS, INC., BID $2,087 TO FURNISH ONE MODEL 115DA DISHWASHING MACHINE. THE BID WAS BELIEVED TO BE IN ERROR BECAUSE IT WAS VERY LOW WHEN COMPARED WITH THE OTHER NINE BIDS MEETING SPECIFICATIONS WHICH RANGED IN PRICE FROM $2,992 TO $3,481.67. IN RESPONSE TO A REQUEST TO VERIFY THEIR BID, THE FIRM ADVISED THAT IN TRANSFERRING THE PRICE FROM ITS WORK SHEETS TO THE BID FORM AN ERROR WAS MADE IN THAT $2,087 WAS TYPED INSTEAD OF $3,087. THE THERMOFAXED COPIES OF THE WORK SHEETS SUBMITTED BY THE FIRM SHOW THAT THE PRICE WAS ARRIVED AT BY ADDING TO ITS SUPPLIER'S $2,853.10 F.O.B. PLANT QUOTATION $90 FOR FREIGHT AND $147 FOR PROFIT TOTALING $3,090 "SHADED" TO $3,087.

SINCE THE BID WAS BELIEVED TO BE ERRONEOUS AND UPON REQUEST FOR VERIFICATION THE BIDDER CONFIRMED THIS BELIEF AND SATISFACTORILY ESTABLISHED THE ERROR AND THE INTENDED PRICE BEFORE AWARD, THE BID SHOULD BE CORRECTED.