B-142834, MAY 18, 1960

B-142834: May 18, 1960

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COMMISSIONER OF INTERNAL REVENUE SERVICE: REFERENCE IS MADE TO LETTER (C:AD:O:P). - WAS MAILED TO 35 PROSPECTIVE BIDDERS ON APRIL 18. BIDDERS WERE REQUIRED TO QUOTE A UNIT PRICE PER THOUSAND. FOUR BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION AS FOLLOWS: TABLE ARTHUR J. MAY HAVE ERRED IN ITS BID PRICES. THE ALLEGATION OF ERROR IN THE BID WAS CONFIRMED. A DETAILED EXPLANATION WAS GIVEN AS TO HOW THE ERROR OCCURRED. IT WAS STATED THAT THE BIDDER'S PRICE SHOULD HAVE BEEN $10.35 PER THOUSAND. WHAT THE BID PRICE SHOULD HAVE BEEN EXCEPT FOR THE ERROR. MADE AN ERROR IN ITS BID AND THE ERROR WAS ALLEGED AND SATISFACTORILY EXPLAINED BY IT PRIOR TO AWARD.

B-142834, MAY 18, 1960

TO MR. DANA LATHAM, COMMISSIONER OF INTERNAL REVENUE SERVICE:

REFERENCE IS MADE TO LETTER (C:AD:O:P), DATED MAY 6, 1960, WITH ENCLOSURES, FROM FRANKLIN L. THATCHER, CHIEF, PUBLICATIONS BRANCH, CONCERNING AN ERROR ARTHUR J. GAVRIN PRESS, INC., NEW ROCHELLE, NEW YORK, ALLEGES IT MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. 21 (FY-60).

INVITATION FOR BIDS NO. 21 (FY-60), ISSUED BY TREASURY DEPARTMENT, INTERNAL REVENUE SERVICE, FOR THE PROCUREMENT OF 2,000,000 THREE-PART SNAPOUT SETS (FORM NO. 2513 (9-59) (--- BID OPENING SCHEDULED FOR MAY 2, 1960--- WAS MAILED TO 35 PROSPECTIVE BIDDERS ON APRIL 18, 1960. BIDDERS WERE REQUIRED TO QUOTE A UNIT PRICE PER THOUSAND, TOTAL PRICE, AND AN ADDITIONAL THOUSAND RATE. FOUR BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION AS FOLLOWS:

TABLE

ARTHUR J. GAVRIN PRESS, INC. $ 5.48 PER M - $10,960 TOTAL

MCGREGOR CARBON FORMS COMPANY 9.66 PER M - 19,320 TOTAL

MURRAY AND HEISTER, INC. 10.90 PER M - 21,800 TOTAL

THE TODD COMPANY DIVISION,

BURROUGHS CORPORATION 13.42 PER M - 26,840 TOTAL

MR. THATCHER STATES THAT EXAMINATION AND COMPARISON OF THE QUOTATIONS INDICATED THAT ARTHUR J. GAVRIN PRESS, INC., MAY HAVE ERRED IN ITS BID PRICES. THEREFORE, HE TELEPHONED THE REPRESENTATIVE OF THAT FIRM AND REQUESTED VERIFICATION OF THE FIRM'S BID. LATER, IN RESPONSE TO THE REQUEST FOR VERIFICATION, THE BIDDER'S REPRESENTATIVE TELEPHONED AND ADVISED THAT AN ERROR HAD BEEN MADE IN THE BID, EXPLAINING THAT THE FIRM HAD QUOTED PAPER COST ONLY AND HAD NOT INCLUDED THE "RUNNING RATE" (PRODUCTION COST) IN ITS BID AND, THEREFORE, GAVRIN PRESS REQUESTED TO BE RELEASED FROM ITS BID. THEREAFTER, IN LETTER DATED MAY 3, 1960, THE ALLEGATION OF ERROR IN THE BID WAS CONFIRMED, A DETAILED EXPLANATION WAS GIVEN AS TO HOW THE ERROR OCCURRED, AND IT WAS STATED THAT THE BIDDER'S PRICE SHOULD HAVE BEEN $10.35 PER THOUSAND. THE WORKSHEETS FORWARDED WITH THAT LETTER SUBSTANTIATE THE ERROR, AS ALLEGED, AND WHAT THE BID PRICE SHOULD HAVE BEEN EXCEPT FOR THE ERROR.

SINCE THE PURCHASING OFFICE HAD REASON TO BELIEVE THAT ARTHUR J. GAVRIN PRESS, INC., MADE AN ERROR IN ITS BID AND THE ERROR WAS ALLEGED AND SATISFACTORILY EXPLAINED BY IT PRIOR TO AWARD, THE BID MAY BE DISREGARDED IN MAKING AWARD UNDER INVITATION FOR BIDS NO. 21 (FY-60), AS REQUESTED BY THE BIDDER.