B-141270, NOV. 30, 1959

B-141270: Nov 30, 1959

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GOVERNMENT PRINTING OFFICE: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 16. REQUESTING OUR DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE REDSON-RICE CORPORATION ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 8563 WAS AWARDED. YOU STATE THAT BIDS ON JACKET NO. 526656 WERE OPENED ON OCTOBER 29. 440 WAS ISSUED AND MAILED TO THE REDSON-RICE CORPORATION AS THE LOW BIDDER ON JACKET NO. 526656. BEFORE THE PURCHASE ORDER WAS RECEIVED BY THE REDSON- RICE CORPORATION. THE VICE PRESIDENT OF THE CORPORATION TELEPHONED THE CONTRACTING OFFICER ALLEGING THAT THE CORPORATION HAD MADE A MISTAKE IN ITS BIDS ON JACKETS NOS. 526656 AND 526859 IN THAT THE PRICES FOR SUCH JACKETS WERE REVERSED.

B-141270, NOV. 30, 1959

TO HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER, GOVERNMENT PRINTING OFFICE:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 16, 1959, WITH ENCLOSURES, REQUESTING OUR DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH THE REDSON-RICE CORPORATION ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 8563 WAS AWARDED.

THE GOVERNMENT PRINTING OFFICE, UNDER JACKET NO. 526656, REQUESTED PRICES ON THE PRODUCTION OF 1,000,000 FOLDERS, TRIM SIZE 12 3/4 BY 7 1/2 INCHES TO BE PERFORATED, STRIP GUMMED IN TWO PLACES AND FOLDED TO 4 1/4 BY 7 1/2 INCHES; SHIPMENT TO BE MADE F.O.B. DESTINATION BEGINNING DECEMBER 4, 1959, AND COMPLETED BY DECEMBER 18, 1959. IN RESPONSE THE REDSON-RICE CORPORATION SUBMITTED A BID DATED OCTOBER 17, 1959, OFFERING TO FURNISH THE FOLDERS F.O.B. ORIGIN FOR $4.30 PER THOUSAND AND SPECIFYING THAT THE SHIPPING CHARGES FROM CHICAGO, ILLINOIS, TO JEFFERSONVILLE, INDIANA, FOR THE TOTAL REQUIRED QUANTITY WOULD BE $140, MAKING A TOTAL PRICE OF $4,440 FOR THE ENTIRE QUANTITY DELIVERED. YOUR LETTER SHOWS THAT THE FOUR OTHER BIDDERS ON THE FOLDERS QUOTED PRICES RANGING FROM $4,999 TO $6,820.

YOU STATE THAT ON OCTOBER 15, 1959, THE GOVERNMENT PRINTING OFFICE MAILED INVITATIONS TO BID TO A NUMBER OF SUPPLIERS TO OBTAIN PRICES ON FOUR DIFFERENT JOBS DESCRIBED IN JACKETS NOS. 526655, 526656, 526858, AND 526859; THAT TWO OF THE FOUR JOBS REQUIRED SINGLE STRIP GUMMING AND THE OTHER TWO REQUIRED DOUBLE STRIP GUMMING; AND THAT THE REDSON RICE CORPORATION SUBMITTED BIDS ON ALL FOUR JOBS. YOU STATE THAT BIDS ON JACKET NO. 526656 WERE OPENED ON OCTOBER 29, 1959, AND THAT ON NOVEMBER 3, 1959, PURCHASE ORDER NO. 8563 COVERING 1,000,000 FOLDERS FOR A TOTAL COST OF $4,440 WAS ISSUED AND MAILED TO THE REDSON-RICE CORPORATION AS THE LOW BIDDER ON JACKET NO. 526656. YOU FURTHER STATE THAT DURING THE AFTERNOON OF NOVEMBER 3, 1959, BEFORE THE PURCHASE ORDER WAS RECEIVED BY THE REDSON- RICE CORPORATION, THE VICE PRESIDENT OF THE CORPORATION TELEPHONED THE CONTRACTING OFFICER ALLEGING THAT THE CORPORATION HAD MADE A MISTAKE IN ITS BIDS ON JACKETS NOS. 526656 AND 526859 IN THAT THE PRICES FOR SUCH JACKETS WERE REVERSED; THAT JACKET NO. 526656, ON WHICH AN AWARD WAS MADE, CALLED FOR DOUBLE STRIP GUMMING AND JACKET NO. 526859 CALLED FOR SINGLE STRIP GUMMING; AND THAT THE VICE PRESIDENT OF THE CORPORATION REQUESTED THAT THE CORPORATION BE PERMITTED TO WITHDRAW ITS BID ON JACKET NO. 526656.

IN A CONFIRMING LETTER DATED NOVEMBER 3, 1959, THE REDSON-RICE CORPORATION STATED THAT THE CORRECT F.O.B. ORIGIN UNIT PRICE FOR JACKET NO. 526656 IS $5.95 PER THOUSAND RATHER THAN $4.30 PER THOUSAND AND THE CORRECT F.O.B. ORIGIN UNIT PRICE FOR JACKET NO. 526859 IS $4.30 PER THOUSAND RATHER THAN $5.95 PER THOUSAND, AS QUOTED. THE CORPORATION ALSO STATED THAT ON OCTOBER 26, 1959--- THREE DAYS BEFORE THE DATE OF THE BID OPENING--- IT HAD TELEPHONED THE CONTRACTING OFFICER TO CHECK THE BID SHEETS WITH THE CORRECT ITEMS BECAUSE IT SUSPECTED THAT THE FORMS WERE MIXED SINCE THERE WERE FOUR SIMILAR QUOTATIONS. IN A LETTER DATED NOVEMBER 4, 1959, THE CORPORATION STATED THAT IT BELIEVED THAT PROOF OF ITS ERROR LIES IN THE FACT THAT THERE ARE TWO ORDERS WITH SINGLE EDGE GUMMING WHICH IT BELIEVED IT WAS QUOTING AT EXACTLY THE SAME PRICE OF $4.30 PER THOUSAND PLUS FREIGHT. THE CORPORATION ALSO STATED THAT THE FACT IT HAD QUOTED A PRICE OF $5.64 PER THOUSAND FOR THE OTHER JOB REQUIRING DOUBLE STRIP GUMMING SUBSTANTIATES THAT ITS BID PRICE OF $4.30 PER THOUSAND FOR JACKET NO. 526656, WHICH ALSO REQUIRES DOUBLE STRIP GUMMING, IS IN ERROR. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED ITS ESTIMATE SHEET WHICH SHOWS THE PRICE OF $4.30 PER THOUSAND FOR THE JOBS WITH THE SINGLE STRIP GUMMING AND $5.95 PER THOUSAND FOR THE JOBS WITH TWO STRIPS GUMMED.

YOU STATE THAT THE CONTRACTING OFFICER HAS ADVISED THAT AT THE TIME AWARD WAS MADE TO REDSON-RICE CORPORATION ON JACKET NO. 526656, THERE HAD NOT BEEN PREPARED A GOVERNMENT PRINTING OFFICE ESTIMATE, THEREFORE, IT WAS NOT NOTED THAT A POSSIBLE ERROR EXISTED IN THE BID; THAT THE FAILURE TO PREPARE THIS ESTIMATE WAS DUE TO THE HEAVY WORK LOAD INVOLVING A NUMBER OF JOBS WHICH WERE BEING ADVERTISED AT THE SAME TIME; AND THAT THE GOVERNMENT PRINTING OFFICE HAS SINCE PREPARED AN ESTIMATE AND HAS FOUND THAT THE ESTIMATED VALUE OF THE WORK COVERED BY JACKET NO. 526656 IS $5,916.80, EXCLUSIVE OF FREIGHT CHARGES. YOU ALSO STATE THAT THE CONTRACTING OFFICER FURTHER ADVISED THAT ON THE BASIS OF THE GOVERNMENT PRINTING OFFICE ESTIMATE, HE BELIEVES THAT THE BID FROM REDSON-RICE CORPORATION IS IN ERROR AND THAT THE QUOTED PRICE OF $4,440 (INCLUDES SHIPPING COST OF $140) IS NOT A FAIR AND REASONABLE OF $4,440 (INCLUDES SHIPPING COST OF $140) IS NOT A FAIR AND REASONABLE PRICE TO PAY FOR THE WORK DESCRIBED IN THE SPECIFICATIONS FOR JACKET NO. 526656.

INASMUCH AS THE RECORD INDICATES THAT HAD A GOVERNMENT PRINTING OFFICE ESTIMATE BEEN PREPARED, BY CONTRACTING OFFICER WOULD HAVE QUESTIONED THE PRICE QUOTED BY THE REDSON-RICE CORPORATION IN ITS BID ON JACKET NO. 526656 PRIOR TO ITS ACCEPTANCE AND SINCE NO DELIVERIES UNDER JACKET NO. 526656 HAVE BEEN MADE BY THE REDSON-RICE CORPORATION PURCHASE ORDER NO. 8563 MAY BE CANCELLED WITHOUT LIABILITY TO THE CORPORATION.

THE PAPERS, WITH THE EXCEPTION OF THE CORPORATION'S LETTERS OF NOVEMBER 3 AND 4, 1959, AND ITS ESTIMATE SHEET, ARE RETURNED.