B-141338, JAN. 29, 1960

B-141338: Jan 29, 1960

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POST OFFICE DEPARTMENT: REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 25. WERE BASED. AWARD WAS MADE TO SEARLES AS THE LOWEST BIDDER AS TO PRICE ON ITEM 2. AWARD WAS MADE TO CASTLE AS THE LOWEST BIDDER AS TO PRICE ON ITEM 1. SEARLES ADVISED THAT IT HAD MADE AN ERROR IN THAT ITS BID WAS BASED ON ROLLED STEEL RATHER THAN CAST STEEL FLAT PLATE AS REQUIRED BY THE SPECIFICATIONS. CASTLE ADVISED THAT THEY HAD MISREAD THE SPECIFICATIONS AND THAT THEIR BID WAS FOR THE FURNISHING OF STEEL ANGLES. " AND IT WAS THE INTENTION OF THE DEPARTMENT THAT EITHER CAST IRON OR STEEL ANGLES SHOULD BE GALVANIZED. THE OTHER BIDS RECEIVED ON ITEM 1 WERE $6. ON ITEM 2 WERE $3. IT WOULD APPEAR THAT A REQUEST FOR VERIFICATION OF THE BIDS WOULD HAVE BEEN IN ORDER BEFORE THEIR ACCEPTANCE.

B-141338, JAN. 29, 1960

TO MR. LEONARD J. SHELTON, POST OFFICE DEPARTMENT:

REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 25, 1959, WITH ENCLOSURES, REQUESTING, AS HEAD OF A PROCURING ACTIVITY, A DECISION AS TO THE ACTION CONCERNING ERRORS SEARLES MANUFACTURING COMPANY AND A. M. CASTLE AND COMPANY ALLEGE THEY MADE IN THEIR BIDS ON WHICH PURCHASE ORDER NOS. 60-218 AND 60-219, RESPECTIVELY, WERE BASED.

BY INVITATION NO. S-6, ISSUED AUGUST 3, 1959, THE UNITED STATES POST OFFICE, CHICAGO, ILLINOIS, REQUESTED BIDS FOR THE FURNISHING OF ALL LABOR AND MATERIAL REQUIRED TO FABRICATE STAKES AND PLATES IN ACCORDANCE WITH THE SPECIFICATIONS CONTAINED IN DRAWING NO. 2348. AWARD WAS MADE TO SEARLES AS THE LOWEST BIDDER AS TO PRICE ON ITEM 2, COVERING 15,000 PLATES, FOR $0.18 EACH, OR A TOTAL PRICE OF $2,700. AWARD WAS MADE TO CASTLE AS THE LOWEST BIDDER AS TO PRICE ON ITEM 1, COVERING 15,000 STAKES, FOR $0.33 EACH, OR A TOTAL PRICE OF $4,950.

BY LETTER OF SEPTEMBER 10, 1959, SEARLES ADVISED THAT IT HAD MADE AN ERROR IN THAT ITS BID WAS BASED ON ROLLED STEEL RATHER THAN CAST STEEL FLAT PLATE AS REQUIRED BY THE SPECIFICATIONS. BY LETTER OF SEPTEMBER 17, 1959, CASTLE ADVISED THAT THEY HAD MISREAD THE SPECIFICATIONS AND THAT THEIR BID WAS FOR THE FURNISHING OF STEEL ANGLES. THE SPECIFICATIONS CALLED FOR "GALVANIZED CAST IRON OR STEEL," AND IT WAS THE INTENTION OF THE DEPARTMENT THAT EITHER CAST IRON OR STEEL ANGLES SHOULD BE GALVANIZED.

THE OTHER BIDS RECEIVED ON ITEM 1 WERE $6,600, $7,500 AND $9,000, AND ON ITEM 2 WERE $3,600, $4,650 AND $9,375. IN VIEW OF THE GREAT DIFFERENCE BETWEEN THE LOWEST BIDS AND THE OTHER BIDS FOR THESE ITEMS, IT WOULD APPEAR THAT A REQUEST FOR VERIFICATION OF THE BIDS WOULD HAVE BEEN IN ORDER BEFORE THEIR ACCEPTANCE.

ACCORDINGLY, THE PURCHASE ORDERS MAY BE CANCELED. A REFERENCE TO THIS DECISION SHOULD BE MADE IN THE PURCHASE ORDERS INVOLVED.