B-141018, NOV. 6, 1959

B-141018: Nov 6, 1959

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VETERANS ADMINISTRATION HOSPITAL: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 14. MAY BE CORRECTED IN VIEW OF THE ERROR ALLEGED TO HAVE BEEN MADE BY THE COMPANY IN ITS QUOTATION. YOU WERE ADVISED INFORMALLY WHEN THE BIDS WERE OPENED. THAT THE UNIT PRICE OF ?44 WAS INTENDED TO BE QUOTED ON THE FOLLOWING ITEM OF THE INVITATION AND THAT A UNIT PRICE OF ?69 SHOULD HAVE BEEN QUOTED FOR ITEM NO. 95. THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE ERROR WAS MADE AS ALLEGED. SINCE YOUR BELIEF WAS CONFIRMED PRIOR TO AWARD AND SUPPORTED BY A SATISFACTORY EXPLANATION.

B-141018, NOV. 6, 1959

TO WILLIAM L. EWALD, CONTRACTING OFFICER, VETERANS ADMINISTRATION HOSPITAL:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 14, 1959, WITH ENCLOSURES, SUBMITTING FOR OUR CONSIDERATION AND DECISION THE QUESTION WHETHER THE UNIT PRICE OF THE BID OF JOHN MORRELL AND CO., ON ITEM NO. 95 OF INVITATION FOR BIDS NO. 60-20, MAY BE CORRECTED IN VIEW OF THE ERROR ALLEGED TO HAVE BEEN MADE BY THE COMPANY IN ITS QUOTATION.

THE RECORD DISCLOSES THAT UPON EXAMINATION OF THE PROPOSALS RECEIVED IN RESPONSE TO THE ABOVE INVITATION YOU SUSPECTED THAT A MISTAKE HAD BEEN MADE BY THE REGIONAL OFFICE OF THE COMPANY IN ITS OFFER AND THEREFORE REQUESTED THAT ITS PRICE BE VERIFIED. YOU WERE ADVISED INFORMALLY WHEN THE BIDS WERE OPENED, AND LATER BY LETTER DATED SEPTEMBER 23, 1959, FROM THE COMPANY'S AGENT, THAT THE UNIT PRICE OF ?44 WAS INTENDED TO BE QUOTED ON THE FOLLOWING ITEM OF THE INVITATION AND THAT A UNIT PRICE OF ?69 SHOULD HAVE BEEN QUOTED FOR ITEM NO. 95. WITH ITS LETTER OF EXPLANATION OF THE ERROR, THE CONTRACTOR FURNISHED ITS WORKSHEET WHICH SHOWS THE NATURE OF THE MISTAKE. ALSO, A COMPARISON BETWEEN ITS PRICE OF ?44 PER POUND AND THAT OF THE OTHER TWO BIDDERS WHO QUOTED ?72 AND ?7419, RESPECTIVELY, DISCLOSED A MATERIAL DIFFERENCE FOR A COMMODITY READILY AVAILABLE ON THE OPEN MARKET.

THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE ERROR WAS MADE AS ALLEGED. SINCE YOU SUSPECTED THE MISTAKE, AND SINCE YOUR BELIEF WAS CONFIRMED PRIOR TO AWARD AND SUPPORTED BY A SATISFACTORY EXPLANATION, THE PURCHASE ORDER MAY BE AMENDED TO REFLECT THE INTENDED PRICE OF ?69 PER POUND, AND SETTLEMENT MAY BE MADE ON THAT BASIS FOR THE QUANTITY DELIVERED.