B-143143, JUL. 26, 1960
Highlights
GOVERNMENT PRINTING OFFICE: REFERENCE IS MADE TO YOUR LETTER OF JULY 11. ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 21672 IS BASED. THE BID OF THE CORPORATION WAS ACCEPTED ON JUNE 3. THE CORPORATION ADVISED THAT ITS PRICE FOR STRINGING THE TAGS IS $1.19 PER THOUSAND. YOU STATE THAT THE CONTRACTING OFFICER HAS ADVISED THAT HE CONSIDERED THE POSSIBILITY OF AN ERROR IN THE BID FROM THE CORPORATION AT THE TIME THE BIDS WERE EVALUATED BUT. YOU ALSO STATE THAT THE CONTRACTING OFFICER HAS STATED THAT HE BELIEVES THE ORIGINAL QUOTATION SUBMITTED BY THE CORPORATION IS ERRONEOUS AND THAT ITS BID PRICE OF $1. 805 IS NOT A FAIR AND REASONABLE PRICE TO PAY FOR THE TAGS. THAT HE HAS STATED FURTHER THAT HE SHOULD HAVE REQUESTED THE CORPORATION TO REVIEW AND CONFIRM ITS BID PRICE BEFORE MAKING AN AWARD ON THE JOB.
B-143143, JUL. 26, 1960
TO THE PUBLIC PRINTER, GOVERNMENT PRINTING OFFICE:
REFERENCE IS MADE TO YOUR LETTER OF JULY 11, 1960, WITH ENCLOSURES, FURNISHING THE REPORT REQUESTED BY OUR OFFICE RELATIVE TO AN ERROR THE RAYBURN MFG.CO., INC., PHILADELPHIA, PENNSYLVANIA, ALLEGES IT MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 21672 IS BASED.
THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS UNDER JACKET NO. 550397, FOR FURNISHING 950,000 TAGS, SIZE 4 1/4 BY 2 1/8 INCHES, PRINTED BOTH SIDES IN BLACK INK ON YELLOW 13 CSU TAG STOCK TO BE FURNISHED BY THE CONTRACTOR AND SHIPMENT TO BE MADE ON OR BEFORE JULY 12, 1960. THE SPECIFICATIONS ALSO REQUIRED THAT THE TAGS BE STRINGED WITH A DOUBLE LOOP OF NO. 9, 6-PLY TWINE, 12 INCHES LONG. IN RESPONSE THE RAYBURN MFG.CO., INC., SUBMITTED A BID DATED MAY 31, 1960, OFFERING TO FURNISH THE TAGS AT A PRICE OF $1.90 PER THOUSAND OR FOR A TOTAL PRICE OF $1,805. THE 12 OTHER BIDS ON THE TAGS RANGED FROM $2,194.50 TO $6,488.50. THE BID OF THE CORPORATION WAS ACCEPTED ON JUNE 3, 1960.
BY LETTER DATED JUNE 7, 1960, ADDRESSED TO OUR OFFICE, THE RAYBURN MFG.CO., INC., REQUESTED THAT IT BE ALLOWED A PRICE ADJUSTMENT OF SOME PERCENTAGE BETWEEN ITS BID PRICE AND THAT OF THE NEXT LOWEST BID--- THE BASIS THEREFOR BEING THAT IT HAD FAILED TO ADD THE STRINGING CHARGE TO ITS BID PRICE. IN A NOTARIZED LETTER DATED JUNE 27, 1960, THE CORPORATION ADVISED THAT ITS PRICE FOR STRINGING THE TAGS IS $1.19 PER THOUSAND, AND THIS PRICE WHEN MULTIPLIED BY 950,000 TAGS RESULTS IN AN ADDITIONAL COST OF $1,130.50 WHICH WOULD INCREASE THE CORPORATION'S BID PRICE TO $2,935.50. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED A COST BREAKDOWN OF ITS PRICE OF $1.19 PER THOUSAND FOR STRINGING THE TAGS AND A PHOTOSTATIC COPY OF ITS ORIGINAL ESTIMATE SHEET. NONE OF THE VARIOUS ITEMS OF COST APPEARING ON THE ESTIMATE SHEET COVER THE COST OF STRINGING THE TAGS.
YOU STATE THAT THE CONTRACTING OFFICER HAS ADVISED THAT HE CONSIDERED THE POSSIBILITY OF AN ERROR IN THE BID FROM THE CORPORATION AT THE TIME THE BIDS WERE EVALUATED BUT, DUE TO THE HEAVY WORKLOAD, HE FAILED TO REQUEST A CONFIRMATION OF THE BID PRICE. YOU ALSO STATE THAT THE CONTRACTING OFFICER HAS STATED THAT HE BELIEVES THE ORIGINAL QUOTATION SUBMITTED BY THE CORPORATION IS ERRONEOUS AND THAT ITS BID PRICE OF $1,805 IS NOT A FAIR AND REASONABLE PRICE TO PAY FOR THE TAGS; AND THAT HE HAS STATED FURTHER THAT HE SHOULD HAVE REQUESTED THE CORPORATION TO REVIEW AND CONFIRM ITS BID PRICE BEFORE MAKING AN AWARD ON THE JOB.
THERE APPEARS LITTLE ROOM FOR DOUBT THAT THE CORPORATION MADE A BONA FIDE ERROR IN ITS BID, AS ALLEGED. HOWEVER, IF ITS BID ON THE TAGS BE INCREASED TO THE AMOUNT ALLEGEDLY INTENDED, IT WILL NOT BE THE LOWEST BID ON THAT ITEM. ACCORDINGLY, SINCE THE CORPORATION HAD INDICATED THAT IT WOULD DELIVER THE REQUIRED TAGS, PAYMENT IS AUTHORIZED TO BE MADE FOR THE TAGS IN THE AMOUNT OF THE NEXT LOWEST CORRECT BID ON THAT ITEM, AS ADMINISTRATIVELY RECOMMENDED.
A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.