B-141412, DEC. 29, 1959

B-141412: Dec 29, 1959

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TO HONORABLE RAYMOND BLATTENBERGER: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 4. IS BASED. FIVE BIDS WERE RECEIVED. THE LOW BID OF $112.50 WAS MADE BY MURRAY AND HEISTER. THE NEXT LOW BID WAS $119.50 AND THE HIGH BID WAS $311.82. AWARD WAS MADE TO MURRAY AND HEISTER. TELEPHONED THE CONTRACTING OFFICER AND REPORTED THAT HIS BID ON THIS JOB WAS IN ERROR AS THE BID WAS FOR A 2-PART SNAPOUT FORM RATHER THAN A 7-PART SNAPOUT FORM. THE NOTICE OF ERROR IN BID WAS CONFIRMED BY MURRAY AND HEISTER. THEY SUBMITTED ALSO THEIR SPECIFICATION AND ESTIMATE SHEET WHICH SHOWS THAT $75 WAS FIGURED AS THE PRICE FOR A 2-PART SNAPOUT FORM. ALSO ATTACHED WAS AN ESTIMATE AND SPECIFICATION SHEET BASED ON THE CORRECT NUMBER OF PARTS IN THE SET WHICH SHOWS A TOTAL OF $360.25.

B-141412, DEC. 29, 1959

TO HONORABLE RAYMOND BLATTENBERGER:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 4, 1959, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR MURRAY AND HEISTER, INC., ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 9697, DATED NOVEMBER 19, 1959, IS BASED.

ON NOVEMBER 6, 1959, THE GOVERNMENT PRINTING OFFICE PLACED ON DISPLAY, IN THE GOVERNMENT PRINTING OFFICE, A PRINTING AND BINDING REQUISITION, AND A SAMPLE, IN ORDER TO OBTAIN PRICES ON THE PRODUCTION OF 5,000 SETS OF A 7- PART SNAPOUT FORM. FIVE BIDS WERE RECEIVED. THE LOW BID OF $112.50 WAS MADE BY MURRAY AND HEISTER, INC. THE NEXT LOW BID WAS $119.50 AND THE HIGH BID WAS $311.82.

AWARD WAS MADE TO MURRAY AND HEISTER, INC., ON NOVEMBER 19, 1959. ON OR ABOUT NOVEMBER 27, 1959, MR. MCCLELLAND OF MURRAY AND HEISTER, INC., TELEPHONED THE CONTRACTING OFFICER AND REPORTED THAT HIS BID ON THIS JOB WAS IN ERROR AS THE BID WAS FOR A 2-PART SNAPOUT FORM RATHER THAN A 7-PART SNAPOUT FORM. MR. MCCLELLAND STATED THAT THE COST FOR THIS JOB SHOULD BE $360, RATHER THAN THE ORIGINAL QUOTED PRICE OF $112.50. THE NOTICE OF ERROR IN BID WAS CONFIRMED BY MURRAY AND HEISTER, INC., IN A LETTER OF NOVEMBER 30, 1959. TO SUBSTANTIATE THE CLAIM OF ERROR, THE BIDDER ATTACHED TO THE LETTER A COPY OF THEIR PURCHASE ORDER ISSUED TO THE EASTERN IMPRINT CORPORATION OF BALTIMORE, MARYLAND, WHICH SHOWS AN AMOUNT OF $75. THEY SUBMITTED ALSO THEIR SPECIFICATION AND ESTIMATE SHEET WHICH SHOWS THAT $75 WAS FIGURED AS THE PRICE FOR A 2-PART SNAPOUT FORM. ALSO ATTACHED WAS AN ESTIMATE AND SPECIFICATION SHEET BASED ON THE CORRECT NUMBER OF PARTS IN THE SET WHICH SHOWS A TOTAL OF $360.25. MR. MCCLELLAND HAS REQUESTED THAT THEY BE AUTHORIZED TO BILL THE GOVERNMENT PRINTING OFFICE FOR $360, WHICH IS THEIR ACTUAL COST ON THIS JOB, OR THAT THEIR PURCHASE ORDER NO. 9697 BE CANCELLED AND AWARD MADE TO ANOTHER CONTRACTOR.

THE CONTRACTING OFFICER HAS STATED THAT HE BELIEVES THE BID OF $112.50 FROM MURRAY AND HEISTER, INC., TO BE ERRONEOUS AS THIS PRICE IS NOT A FAIR AND REASONABLE PRICE TO PAY FOR 5,000 SETS OF A 7-PART SNAPOUT FORM. HAS ADVISED ALSO THAT, BECAUSE OF THE EXTRA HEAVY WORKLOAD AT THE TIME THE AWARD WAS MADE, HE DID NOT TAKE THE TIME TO PROPERLY EVALUATE THE BIDS RECEIVED AND, FOR THIS REASON, FAILED TO NOTE THAT AN ERROR HAD BEEN MADE IN THE BID. HE FEELS THAT HE SHOULD HAVE NOTED THE POSSIBILITY OF ERROR BEFORE AWARD AND SHOULD HAVE REQUESTED MURRAY AND HEISTER, INC., TO REVIEW THE SPECIFICATIONS AND TO CONFIRM THEIR BID PRICE. OUR OFFICE IS IN ACCORD WITH THIS STATEMENT. THE CONTRACTING OFFICER HAS THEREFORE RECOMMENDED THAT THE PURCHASE ORDER NO. 9697 BE CANCELLED WITHOUT LIABILITY TO THE CONTRACTOR.

ACCORDINGLY, SINCE NO WORK HAS BEEN PERFORMED ON THE ORDER AND ALL WORK IS BEING DELAYED PENDING OUR DECISION IN THE MATTER, THE PURCHASE ORDER SHOULD BE CANCELLED WITHOUT LIABILITY TO THE COMPANY.