B-142039, FEB. 24, 1960

B-142039: Feb 24, 1960

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VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 12. THE UNIT PRICE WILL GOVERN.'. SINCE THE UNIT PRICE QUOTED BY HYPO SURGICAL SUPPLY CORPORATION ON ITEM NO. 18 WAS HIGHER THAN THE UNIT PRICE QUOTED BY IT ON ITEMS NOS. 16 AND 17 FOR FURNISHING SMALLER QUANTITIES OF IDENTICAL SYRINGES AT A MORE DISTANT DESTINATION. VERIFICATION OF THE BID ON ITEM NO. 18 WAS REQUESTED BY TELEPHONE. THE BIDDER STATED THAT IT MUST HAVE MADE A TYPOGRAPHICAL ERROR AS ITS INTENDED UNIT BID WAS $0.83 ON ITEM NO. 18 AS WELL AS ON ITEMS NOS. 16 AND 17. IN THE LETTER IT WAS STATED: "* * * THE PRICE SHOULD BE 83 CENTS PER UNIT. YOU WILL NOTICE THAT OUR TOTAL AMOUNT IS $896.40. WHICH IS BASED ON THE 83 CENT PRICE.

B-142039, FEB. 24, 1960

TO MR. ADAM E. SHUMAN, CHIEF, MARKETING DIVISION, DENTAL AND SURGICAL SUPPLY, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 12, 1960, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER THE BID SUBMITTED BY HYPO SURGICAL SUPPLY CORPORATION, NEW YORK, NEW YORK, IN RESPONSE TO INVITATION FOR BIDS NO. M1-129-60, MAY BE AMENDED.

THE INVITATION REQUESTED BIDS--- TO BE OPENED FEBRUARY 2, 1960--- FOR FURNISHING 18 ITEMS OF SYRINGES TO BE DELIVERED AT THREE DESTINATIONS AT VARIOUS PERIODS SPECIFIED THEREIN. PARAGRAPH 1 (C) OF THE "TERMS AND CONDITIONS OF THE INVITATION FOR BIDS" STATES: "IN CASE OF ERROR IN EXTENSION OF PRICE, THE UNIT PRICE WILL GOVERN.'

IN RESPONSE TO THE INVITATION, HYPO SURGICAL SUPPLY CORPORATION SUBMITTED ITS BID ON ALL ITEMS, INCLUDING A BID OF $0.83 EACH FOR 96 SYRINGES FOR DELIVERY AT WILMINGTON, CALIFORNIA, APRIL 1-20-60 (ITEM NO. 16); $0.83 EACH FOR 96 SYRINGES FOR DELIVERY AT WILMINGTON, CALIFORNIA, JULY 1-20-60 (ITEM NO. 17); AND $0.84 EACH (TOTAL AMOUNT $896.40) FOR 1,080 SYRINGES FOR DELIVERY AT HINES, ILLINOIS, JULY 1-20 60. THE TWO OTHER BIDS RECEIVED ON ITEMS NOS. 16, 17 AND 18 QUOTED UNIFORM UNIT PRICES OF $0.88 AND $0.90 ON EACH ITEM.

SINCE THE UNIT PRICE QUOTED BY HYPO SURGICAL SUPPLY CORPORATION ON ITEM NO. 18 WAS HIGHER THAN THE UNIT PRICE QUOTED BY IT ON ITEMS NOS. 16 AND 17 FOR FURNISHING SMALLER QUANTITIES OF IDENTICAL SYRINGES AT A MORE DISTANT DESTINATION, VERIFICATION OF THE BID ON ITEM NO. 18 WAS REQUESTED BY TELEPHONE. BY ITS LETTER DATED FEBRUARY 5, 1960, CONFIRMING THE TELEPHONE CONVERSATION, THE BIDDER STATED THAT IT MUST HAVE MADE A TYPOGRAPHICAL ERROR AS ITS INTENDED UNIT BID WAS $0.83 ON ITEM NO. 18 AS WELL AS ON ITEMS NOS. 16 AND 17. IN THE LETTER IT WAS STATED:

"* * * THE PRICE SHOULD BE 83 CENTS PER UNIT, AND YOU WILL NOTICE THAT OUR TOTAL AMOUNT IS $896.40, WHICH IS BASED ON THE 83 CENT PRICE. WOULD CERTAINLY NOT INCREASE A PRICE TO HINES, ILLINOIS ON THE LARGEST NUMBER OF UNITS, OR DECREASE IT TO A FURTHER DESTINATION LIKE WILMINGTON, CALIFORNIA FOR A SMALLER NUMBER OF UNITS. * * *"

IN VIEW OF THE FACTS OF THIS MATTER AS REPORTED AND SHOWN BY THE FILE, IT MAY BE REGARDED AS CONVINCINGLY ESTABLISHED THAT HYPO SURGICAL SUPPLY CORPORATION MADE AN ERROR IN ITS BID ON ITEM NO. 18, INTENDING TO BID A UNIT PRICE OF $0.83 INSTEAD OF $0.84.

IN 36 COMP. GEN. 429, IT WAS HELD (QUOTING SYLLABUS):

"A BID WHICH CONTAINED AN APPARENT ERROR IN THE UNIT PRICE, ALTHOUGH THE TOTAL PRICE WAS BASED ON THE INTENDED UNIT PRICE, MAY BE CONSIDERED FOR AWARD ON THE BASIS OF THE TOTAL PRICE, EVEN THOUGH THE INVITATION PROVIDED THAT, IN THE CASE OF A DISCREPANCY BETWEEN THE UNIT AND TOTAL PRICE, THE UNIT PRICE WOULD PREVAIL.'

IN THAT CASE, THE DECISION RESULTED IN AN AWARD TO A BIDDER WHICH WOULD NOT HAVE RECEIVED THE AWARD IF ITS ERRONEOUS UNIT PRICE HAD BEEN USED IN EVALUATING ITS BID. IN THE INSTANT MATTER, HYPO SURGICAL SUPPLY CORPORATION IS LOW BIDDER ON ITEM NO. 18 IRRESPECTIVE OF WHETHER ITS UNIT BID PRICE OR ITS EXTENDED BID PRICE IS REGARDED AS CONTROLLING, THE ONLY RESULT OF CORRECTING THE OBVIOUSLY ERRONEOUS UNIT PRICE BEING TO DECREASE THE COST TO THE GOVERNMENT.

IN VIEW OF THE FOREGOING, THE BID OF HYPO SURGICAL SUPPLY CORPORATION MAY BE AMENDED BY CHANGING THE UNIT PRICE ON ITEM NO. 18 FROM $0.84 TO $0.83.

AS REQUESTED, THE PAPERS TRANSMITTED WITH THE LETTER OF FEBRUARY 12, 1960, ARE RETURNED HEREWITH.