B-143596, JUL. 29, 1960

B-143596, JUL. 29, 1960

TO THE PUBLIC PRINTER, GOVERNMENT PRINTING OFFICE:

REFERENCE IS MADE TO YOUR LETTER DATED JULY 25, 1960, WITH ENCLOSURES, REQUESTING A DECISION CONCERNING AN ERROR WHICH THE MAY TAG AND LABEL CORP., NEW YORK, NEW YORK, ALLEGES THEY MADE IN THEIR BID ON WHICH PURCHASE ORDER NO. 1767 DATED JULY 19, 1960, WAS BASED.

UNDER JACKET NO. 554712 THE GOVERNMENT PRINTING OFFICE ADVERTISED FOR SEALED BIDS--- OPENING DATE JULY 12, 1960--- ON 350,000 TAGS, SIZE 3 1/4 INCH BY 8 1/2 INCH, TO BE PRINTED ONE SIDE ONLY IN BLACK INK ON 13 SU MANILA TAG STOCK, STRUNG WITH 12 INCH NO. 96-PLY STRING, ALL MATERIALS AND SERVICES TO BE FURNISHED BY THE CONTRACTOR AND SHIPMENT TO BE MADE F.O.B. DESTINATIONS ON OR BEFORE AUGUST 22, 1960. WHEN BIDS WERE OPENED AS SCHEDULED THE FOLLOWING BIDS WERE RECEIVED:

TABLE

BIDDER BID PRICE

--------------- MAY TAG AND LABEL CORP.

$1,463.00 DIXIE TAG AND ENVELOPE COMPANY 1,578.50 DENNISON MANUFACTURING CO. 1,858.50 STERLING TAG COMPANY

1,860.00 CAMPBELL BOX AND TAG CO. 1,882.50 THE DENNEY TAG COMPANY 1,925.00 WISE TAG AND LABEL COMPANY

1,925.00 INTERNATIONAL TAG AND BUSINESS FORM CO. 2,054.50 THE NATIONAL TAG COMPANY 2,198.00 AMERICAN PAPER COMPANY

2,207.50 HAYWOOD TAG COMPANY 2,207.50 KEENER MFG. COMPANY 2,502.50 U.S. TAG AND TICKET COMPANY

2,604.00

AWARD WAS MADE ON JULY 18, 1960, TO THE MAY TAG AND LABEL CORP. AS THE LOW BIDDER AND PURCHASE ORDER NO. 1767 DATED JULY 19, 1960, FOR 250,000 TAGS FOR A TOTAL COST OF $1,463 WAS ISSUED AND MAILED ON THE SAME DAY.

ON JULY 20, 1960, THE CONTRACTING OFFICER RECEIVED A TELEPHONE CALL FROM THE MAY TAG AND LABEL CORP., ADVISING THAT AN ERROR HAD BEEN MADE IN THEIR BID FOR THESE TAGS, AND EXPLAINING THAT THEY HAD NEGLECTED TO INCLUDE THE COST FOR FREIGHT ON THE SHIPMENTS TO THE TWO DESIGNATED DESTINATIONS. A LETTER DATED JULY 20, 1960, FROM MR. IRVING MEYERS, THE CORPORATION'S ALLEGATION OF ERROR IN BID WAS CONFIRMED. MR. MEYERS EXPLAINED THAT WHEN HE WAS ON VACATION HIS ASSISTANT FIGURED THE ESTIMATED INCORRECTLY BY OMITTING THE FREIGHT COSTS IN THE BID PRICE, HAVING OVERLOOKED THE FACT THAT THE INVITATION CALLED FOR SHIPMENTS F.O.B. DESIGNATED DESTINATIONS. THE BIDDER'S ESTIMATE SHEET, FORWARDED WITH MR. MEYERS' LETTER, CONFIRMED AND SUBSTANTIATED THE CORPORATION'S ALLEGATION OF ERROR THAT THE FREIGHT COSTS--- AMOUNTING TO APPROXIMATELY $250--- WERE OMITTED FROM THEIR BID. THE COMPANY HAS REQUESTED THAT THEY BE RELIEVED OF THE RESPONSIBILITY OF COMPLYING WITH THE NOTICE OF AWARD.

YOU STATE THAT THE CONTRACTING OFFICER NOW ADVISES THAT HE SHOULD HAVE RECOGNIZED THE POSSIBILITY OF AN ERROR IN THE BID FROM THE MAY TAG AND LABEL CORP., AND SHOULD HAVE REQUESTED THEM TO REVIEW THE SPECIFICATIONS AND TO CONFIRM THEIR BID PRICE, BEFORE ACCEPTING THEIR BID AND MAKING AN AWARD FOR THIS JOB. HOWEVER, DUE TO AN EXTRA HEAVY WORKLOAD AT THE TIME OF EVALUATING BIDS HE FAILED THROUGH OVERSIGHT TO TAKE NOTICE OF THE POSSIBILITY OF ERROR AND TO REQUEST THE BIDDER TO VERIFY ITS BID. IT IS THE CONTRACTING OFFICER'S BELIEF THAT THE ORIGINAL BID FROM MAY TAG AND LABEL CORP. IS ERRONEOUS AS $1,463, THE AMOUNT OF THEIR BID, IS NOT CONSIDERED A FAIR AND REASONABLE PRICE TO PAY FOR 350,000 TAGS DELIVERED TO THE SPECIFIED DESTINATIONS, ALBANY, GEORGIA, AND BARSTOW, CALIFORNIA.

ON THE RECORD, THERE IS NO DOUBT THAT THE MAY TAG AND LABEL CORP. MADE AN ERROR IN THEIR BID AS ALLEGED AND SUBSTANTIATED BY THE ESTIMATE SHEET; THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN AWARE OF THE POSSIBILITY OF ERROR IN THE BID AT THE TIME THE BIDS WERE BEING EVALUATED; AND THAT HE SHOULD HAVE REQUESTED VERIFICATION OF THE BID PRIOR TO HIS ACCEPTANCE THEREOF. CONSEQUENTLY, HIS ACCEPTANCE OF THE BID OF THE MAY TAG AND LABEL CORP. DID NOT RESULT IN A VALID AND BINDING CONTRACT. IN THESE CIRCUMSTANCES, AND SINCE THE CONTRACTOR PROMPTLY, UPON RECEIPT OF THE PURCHASE ORDER, ALLEGED ERROR IN THEIR BID AND, FURTHER, SINCE NO WORK HAS BEEN PERFORMED THEREUNDER, PURCHASE ORDER NO. 1767 MAY BE CANCELED.