B-142894, JUN. 15, 1960

B-142894: Jun 15, 1960

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MARKETING DIVISION FOR TECHNICAL AND SCIENTIFIC SUPPLY: REFERENCE IS MADE TO YOUR LETTER DATED MAY 11. THE OTHER BIDS WERE $490. IS WITH AUDIVOX. THE UNIT PRICE IS $299.50. THE TERMS AND CONDITIONS CONTAINED IN INVITATION M6 1-61 ARE COMPARABLE TO THOSE APPLYING TO THE CURRENT CONTRACT. THE AUDIVOX RETAIL PRICE LISTS IN EFFECT AT THE TIME ITS BID WAS SUBMITTED IN RESPONSE TO THE CURRENT INVITATION. ALSO AT THE TIME ITS BID WAS SUBMITTED FOR THE PREVIOUS YEAR. THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE ERROR WAS MADE AS ALLEGED. SINCE THE DISPARITY BETWEEN THE BID IN QUESTION AND OTHER BIDS RECEIVED WAS SO GREAT AS TO PRECLUDE A BONA FIDE AWARD WITHOUT CONFIRMATION OF THE BID.

B-142894, JUN. 15, 1960

TO MR. VICTOR J. SCHMITT, CONTRACT SPECIALIST, MARKETING DIVISION FOR TECHNICAL AND SCIENTIFIC SUPPLY:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 11, 1960, WITH ENCLOSURES, YOUR FILE NUMBER 7023/134N2, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR AUDIVOX, INC. ALLEGES IT MADE IN ITS BID OPENED ON MAY 4, 1960.

BY INVITATION NUMBER M6-1-61, ISSUED APRIL 9, 1960, THE VETERANS ADMINISTRATION REQUESTED BIDS FOR GENERAL DIAGNOSTIC AUDIOMETERS. AUDIVOX, INC. SUBMITTED A BID TO FURNISH THE ESTIMATED QUANTITY OF TEN UNITS FOR $199.50 EACH. THE OTHER BIDS WERE $490, $595 AND $605 PER UNIT.

YOU STATE THAT, UPON OPENING THE BIDS, YOU SUSPECTED AN ERROR AND CONTACTED AUDIVOX TO REQUEST VERIFICATION OF ITS BID. AUDIVOX IMMEDIATELY ALLEGED ERROR. BY LETTER OF MAY 5, 1960, THE VICE PRESIDENT OF AUDIVOX WHO SIGNED THE BID STATED THAT HE INTENDED THE BID TO BE THE SAME AS THEIR BID PRICE FOR THE PREVIOUS YEAR, NAMELY $299.50 PER UNIT, AND REQUESTED CORRECTION OF THE BID.

THE RECORD DISCLOSES THAT YOUR CURRENT CONTRACT FOR THE PERIOD ENDING JUNE 30, 1960, IS WITH AUDIVOX, INCORPORATED, AND THE UNIT PRICE IS $299.50. THE TERMS AND CONDITIONS CONTAINED IN INVITATION M6 1-61 ARE COMPARABLE TO THOSE APPLYING TO THE CURRENT CONTRACT.

THE AUDIVOX RETAIL PRICE LISTS IN EFFECT AT THE TIME ITS BID WAS SUBMITTED IN RESPONSE TO THE CURRENT INVITATION, AND ALSO AT THE TIME ITS BID WAS SUBMITTED FOR THE PREVIOUS YEAR, SET FORTH RETAIL PRICES RANGING FROM $395 TO $415 FOR BASIC AUDIOMETERS. WITH THE ADDITION OF ACCESSORIES REQUIRED BY THE INVITATION FOR BIDS, THE RETAIL PRICES RANGE FROM $456.10 TO $476.10 PER UNIT.

THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE ERROR WAS MADE AS ALLEGED. SINCE THE DISPARITY BETWEEN THE BID IN QUESTION AND OTHER BIDS RECEIVED WAS SO GREAT AS TO PRECLUDE A BONA FIDE AWARD WITHOUT CONFIRMATION OF THE BID, AND SINCE ERROR WAS PROMPTLY ALLEGED AND THE INTENDED BID PRICE WAS ESTABLISHED BY SATISFACTORY EVIDENCE, THE BID OF AUDIVOX, INCORPORATED, MAY BE CORRECTED TO REFLECT THE INTENDED UNIT PRICE OF $299.50.

IN THE EVENT OF AN AWARD TO AUDIVOX ON ITS CORRECTED BID, YOU SHOULD REFER TO THIS DECISION IN YOUR AWARD.