B-142453, APR. 7, 1960

B-142453: Apr 7, 1960

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VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER (7018/134J). AMONG WHICH WAS ITEM NO. 1. YOU STATE THAT UPON EVALUATING BIDS IT WAS NOTED THAT THE $48 UNIT PRICE QUOTED BY SILVER REFRIGERATION MFG. FOR ITEM NO. 1 WAS CONSIDERABLY LOWER THAN THE PRICES OFFERED BY THE FOUR OTHER BIDDERS ON THAT ITEM. ADVISING IT THAT ITS BID PRICE WAS ONLY $48 AND THAT THE ITEM NORMALLY COSTS COSTS OVER $300. THE CORPORATION NOTIFIED YOU THAT IT DID NOT INTEND TO BID ON ITEM NO. 1 AS IT HAD NEVER PREVIOUSLY MADE THAT CABINET AND THAT IT WAS NOT FAMILIAR WITH THE APPLICABLE SPECIFICATIONS. SINCE YOU SUSPECTED ERROR IN THE BID AND THAT SUSPICION WAS CONFIRMED AND THE ERROR WAS SATISFACTORILY EXPLAINED BY THE BIDDER PRIOR TO AWARD.

B-142453, APR. 7, 1960

TO MR. J. W. PARKER, JR., CONTRACTING OFFICER,

MARKETING DIVISION M3, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER (7018/134J), DATED MARCH 29, 1960, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHAT ACTION SHOULD BE TAKEN CONCERNING THE REQUEST OF SILVER REFRIGERATION MFG. CORP., BROOKLYN, NEW YORK, THAT IT BE EXCUSED FROM ITS BID ON ITEM NO. 1 OF INVITATION NO. M3- 201-60, BECAUSE OF AN ERROR THEREIN ALLEGED PRIOR TO AWARD.

THE INVITATION SOLICITED BIDS--- TO BE OPENED AT 2 P.M., C.S.T., ON MARCH 15, 1960--- FOR FURNISHING AND DELIVERING AT SPECIFIED DESTINATIONS CERTAIN ITEMS OF EQUIPMENT, AMONG WHICH WAS ITEM NO. 1, CONSISTING OF 20 UNITS AND DESCRIBED AS "7029250; CABINET, INSTRUMENT, MEDICAL: TYPE III- INSTRUMENT, DRESSING AND MEDICINE CABINET: SHALL BE IN ACCORDANCE WITH VETERANS ADMINISTRATION DESCRIPTION NO. X-765, DATED AUGUST 3, 1959. 30523.'

YOU STATE THAT UPON EVALUATING BIDS IT WAS NOTED THAT THE $48 UNIT PRICE QUOTED BY SILVER REFRIGERATION MFG. CORP. FOR ITEM NO. 1 WAS CONSIDERABLY LOWER THAN THE PRICES OFFERED BY THE FOUR OTHER BIDDERS ON THAT ITEM, VIZ., $399, $447.03, $497.50, AND $760; AND THAT, IN FACT, THIS PARTICULAR CABINET HAD NEVER BEEN PURCHASED BY THE DEPOT FOR LESS THAN $403 PER UNIT. THEREFORE, BY TELEGRAM DATED MARCH 18, 1960, YOU REQUESTED SILVER REFRIGERATION MFG. CORP. TO CONFIRM ITS UNIT PRICE ON ITEM NO. 1, ADVISING IT THAT ITS BID PRICE WAS ONLY $48 AND THAT THE ITEM NORMALLY COSTS COSTS OVER $300.

IN RESPONSE, ON MARCH 21, 1960, BY TELEPHONE, THE CORPORATION NOTIFIED YOU THAT IT DID NOT INTEND TO BID ON ITEM NO. 1 AS IT HAD NEVER PREVIOUSLY MADE THAT CABINET AND THAT IT WAS NOT FAMILIAR WITH THE APPLICABLE SPECIFICATIONS, EXPLAINING THAT IN PREPARING ITS BID "48.00" INADVERTENTLY HAD BEEN INSERTED IN THE UNIT COLUMN FOR THAT ITEM, THE SAME ITEM PRICE QUOTED BY IT FOR ITEMS NOS. 2 AND 4, INSTEAD OF "NO. BID.' IN A LETTER DATED MARCH 23, 1960, TO YOU THE BIDDER CONFIRMED ITS ALLEGATION OF ERROR, FORWARDED IN SUBSTANTIATION OF THE ALLEGED ERROR A PHOTOCOPY OF THE WORK COPY OF ITS BID, AND REQUESTED THAT IT BE EXCUSED FROM THE ERRONEOUS BID.

THE RECORD LEAVES LITTLE DOUBT, IF ANY, THAT SILVER REFRIGERATION MFG. CORP. MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE YOU SUSPECTED ERROR IN THE BID AND THAT SUSPICION WAS CONFIRMED AND THE ERROR WAS SATISFACTORILY EXPLAINED BY THE BIDDER PRIOR TO AWARD, ITS BID MAY BE DISREGARDED IN MAKING THE AWARD ON ITEM NO. 1 OF INVITATION NO. M3-201- 60.