B-143387, AUG. 4, 1960

B-143387: Aug 4, 1960

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

VETERANS ADMINISTRATION: REFERENCE IS MADE TO A LETTER (3058/134). TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. 3058-61- 5 ISSUED MAY 16. BIDDERS WERE REQUIRED BY THE INVITATION TO STATE THE UNIT PRICES FOR EACH ITEM ON WHICH QUOTING AND THE TOTAL PRICE QUOTED FOR ALL ITEMS IN THE GROUP. THE INVITATION ALSO PROVIDED THAT AN AGGREGATE AWARD OF THE EIGHT ITEMS WAS CONTEMPLATED AND THAT THE ENTIRE GROUP OF ITEMS WOULD BE AWARDED TO THE BIDDER QUOTING THE LOWEST PRICE FOR THE COMPLETE GROUP. THE ABSTRACT OF BIDS SHOWS THAT FOUR BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION. 363.45) THE RECORD SHOWS THAT ON THE DATE BIDS WERE OPENED A REPRESENTATIVE OF STANDARD-VACUUM OIL COMPANY CALLED THE CHIEF OF THE PROCUREMENT SECTION.

B-143387, AUG. 4, 1960

TO ADMINISTRATOR, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO A LETTER (3058/134), DATED JUNE 23, 1960, WITH ENCLOSURES, FROM C. R. VAUGHN, CHIEF, SUPPLY DIVISION, MANILA REGIONAL OFFICE, MANILA, PHILIPPINES, REQUESTING A DECISION AS TO THE MATTER OF AN ERROR ALLEGED BY THE STANDARD-VACUUM OIL COMPANY, MANILA, PHILIPPINES, TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. 3058-61- 5 ISSUED MAY 16, 1960.

THE INVITATION SOLICITED BIDS FOR FURNISHING DURING THE PERIOD JULY 1, 1960, TO JUNE 30, 1961, IN ACCORDANCE WITH THE TERMS AND CONDITIONS CONTAINED IN THE INVITATION, EIGHT ITEMS OF GASOLINE AND PETROLEUM PRODUCTS TO THE VETERANS ADMINISTRATION MOTOR POOL LOCATED IN MANILA. BIDDERS WERE REQUIRED BY THE INVITATION TO STATE THE UNIT PRICES FOR EACH ITEM ON WHICH QUOTING AND THE TOTAL PRICE QUOTED FOR ALL ITEMS IN THE GROUP. THE INVITATION ALSO PROVIDED THAT AN AGGREGATE AWARD OF THE EIGHT ITEMS WAS CONTEMPLATED AND THAT THE ENTIRE GROUP OF ITEMS WOULD BE AWARDED TO THE BIDDER QUOTING THE LOWEST PRICE FOR THE COMPLETE GROUP. THE ABSTRACT OF BIDS SHOWS THAT FOUR BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION, WITH QUOTATIONS ON ITEM NO. 8, HERE IN QUESTION, AND TOTAL AGGREGATE BIDS ON THE EIGHT ITEMS, RESPECTIVELY, AS FOLLOWS:

CHART

ITEM NO. 8 TOTAL AGGREGATE BID

BIDDER UNIT PRICE TOTAL PRICE ON ALL 8 ITEMS

------ ---------- ----------- ------------------- STANDARD-VACUUM OIL $0.135 $297 (CORRECT $4,635.60 (CORRECT TOTAL

PRICE $29.70) BID $4,368.30) THE SHELL COMPANY OF 0.1470 32.34 5,310.51

THE PHILIPPINES

LIMITED, MANILA TIDEWATER OIL COMPANY, 0.2479 54.54 6,980.50

MANILA CALTE (PHILIPPINES) 0.3780 83.16 7,149.27 (ALTERNATE BID

INC., MANILA $7,363.45)

THE RECORD SHOWS THAT ON THE DATE BIDS WERE OPENED A REPRESENTATIVE OF STANDARD-VACUUM OIL COMPANY CALLED THE CHIEF OF THE PROCUREMENT SECTION, SUPPLY DIVISION, AND STATED THAT THE COMPANY HAD MADE A MISTAKE IN ITS BID ON ITEM NO. 8 FOR FURNISHING 220 GALLONS OF "DIESEL OIL, AUTOMOTIVE, IN 55 -GALLON DRUMS.' THE COMPANY WAS AT THAT TIME INFORMED THAT IF A MISTAKE ACTUALLY HAD BEEN MADE IT WOULD BE NECESSARY FOR THE COMPANY TO VERIFY SUCH MISTAKE WITH A LETTER AND OTHER ESSENTIAL DATA NECESSARY TO CONFIRM THE ALLEGED MISTAKE.

BY LETTER DATED JUNE 20, 1960--- RECEIVED IN THE CONTRACTING OFFICE ON JUNE 23--- STANDARD-VACUUM OIL COMPANY CONFIRMED ITS ALLEGATION OF ERROR IN ITS BID ON ITEM NO. 8, EXPLAINING THAT ITS "QUOTATION FOR MOBILDIESEL AT $0.135 PER GALLON DOES NOT INCLUDE THE COST OF DRUM. THEREFORE, IF THIS ITEM SHOULD BE DELIVERED IN 200-LITER DRUMS, THE FOLLOWING ADDITIONAL COST WILL BE ADDED:

CHART

"COST OF DRUM - $0.15140 PER GALLON

FILLING AND DEPRECIATION - 0.02839 DO. DO.

TOTAL - $0.17979 PER GALLON

THE QUOTATION FOR THIS ITEM INCLUDING DRUM WILL, THEREFORE, BE $0.31479 PER GALLON.' THE COMPANY ALSO CONFIRMED ITS BID OFFER OF A REBATE OF $8 FOR EACH EMPTY DRUM, COMPLETE WITH BUNG AND IN SERVICEABLE CONDITION, RETURNED TO THE COMPANY'S WAREHOUSE.

MR. VAUGHN, IN HIS LETTER OF JUNE 23, STATED THAT REPRESENTATIVES OF ALL FOUR BIDDERS WERE PRESENT AT THE OPENING OF BIDS AND AT THAT TIME NO MENTION WAS MADE BY THE REPRESENTATIVE OF STANDARD-VACUUM OIL COMPANY OF AN ERROR IN HIS COMPANY'S BID ON ITEM NO. 8, AND THAT SINCE THE NEXT LOW BID OF $0.1470 PER GALLON ON ITEM NO. 8 FROM THE SHELL OIL COMPANY WAS ONLY SLIGHTLY MORE THAN THE BID OF STANDARD-VACUUM OIL COMPANY THERE WAS NO REASON FOR HIM TO ASSUME THAT THE BID OF $0.135 PER GALLON BY STANDARD- VACUUM OIL COMPANY WAS ERRONEOUS. HE ALSO STATED, HOWEVER, THAT REPRESENTATIVES OF THAT COMPANY IN SUBSEQUENT DISCUSSIONS CONCERNING THE MATTER REVEALED THAT THE COST OF A 55 GALLON DRUM OF OIL AT $0.135 PER GALLON WOULD AMOUNT TO $7.32 PER DRUM, AND IN VIEW OF THE FACT THAT THE COMPANY OFFERED THE GOVERNMENT AN $8 REFUND FOR EACH EMPTY 55-GALLON DRUM RETURNED FOR CREDIT, IT IS NOW REASONABLE TO ASSUME THAT A MISTAKE IN FACT WAS MADE BY STANDARD VACUUM OIL COMPANY IN COMPUTING ITS BID OF $0.135 ON ITEM NO. 8, AS ALLEGED. MR. VAUGHN FURTHER STATED THAT BECAUSE TIME WOULD NOT PERMIT A DECISION FROM OUR OFFICE PRIOR TO DELIVERY OF THE PRODUCTS REQUIRED BY IFB NO. 3058-61-5, AN AGGREGATE AWARD OF THE EIGHT ITEMS WAS BEING MADE TO STANDARD-VACUUM OIL COMPANY (CONTRACT NO. V3058-P-299, JUNE 28, 1960).

ON THE BASIS OF THE RECORD THERE IS LITTLE DOUBT, IF ANY, THAT STANDARD- VACUUM OIL COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED.

THE BASIC RULE, OF COURSE, IS THAT IN COMPETITIVE BIDDING AWARD OF A CONTRACT MUST BE MADE TO THE RESPONSIBLE BIDDER SUBMITTING THE LOWEST BID AND, ALSO, THAT BIDS MAY NOT BE CHANGED AFTER THEY ARE OPENED. IN THE INSTANT CASE, IF THE COMPANY'S BID ON ITEM NO. 8 IS PERMITTED TO BE CORRECTED, AS REQUESTED, THE BID OF STANDARD-VACUUM OIL COMPANY ON THAT ITEM WOULD NOT BE THE LOWEST BID RECEIVED; HOWEVER, THE COMPANY'S REVISED TOTAL BID AS A RESULT OF THE CORRECTION AS TO ITEM NO. 8 WOULD CONTINUE TO BE THE LOWEST AGGREGATE BID ON THE EIGHT ITEMS COVERED BY THE INVITATION, THE BASIS STIPULATED IN THE INVITATION FOR AWARDING OF THE CONTRACT.

CONSEQUENTLY, AND CONSIDERING THAT THE ERROR HERE ALLEGED WAS APPARENT FROM A SUPERFICIAL EXAMINATION OF THE CONTRACTOR'S BID AND ALSO THAT THE CONTRACTING OFFICER HAD ACTUAL NOTICE OF SUCH ERROR PRIOR TO MAKING THE AWARD TO STANDARD-VACUUM OIL COMPANY, NO OBJECTION WILL BE INTERPOSED BY US TO THE MODIFICATION OF CONTRACT NO. V3058-P-299 TO CONFORM TO THE PRICE ON ITEM NO. 8 AS INDICATED BY THE CONTRACTOR.

THE PAPERS FORWARDED WITH THE LETTER OF JUNE 23, 1960, ARE RETURNED, AS REQUESTED.

Sep 27, 2016

Sep 22, 2016

Sep 21, 2016

Sep 20, 2016

Looking for more? Browse all our products here