B-143705, AUG. 19, 1960

B-143705: Aug 19, 1960

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NEW JERSEY: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 5. REQUESTING A DECISION AS TO THE ACTION THAT SHOULD BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY PHIPPS PRODUCTS CORPORATION TO HAVE BEEN MADE IN ITS BID ON ITEMS 15. IT IS REPORTED THAT WHEN THE BIDS WERE OPENED IT WAS NOTED THAT THE BID OF PHIPPS PRODUCTS CORPORATION WAS COMPLETELY OUT OF LINE WITH THE REST OF THE BIDS RECEIVED AND. THE CORPORATION WAS CONTACTED BY TELEPHONE ON JULY 27. WAS REQUESTED TO VERIFY ITS BID. THE BIDDER ADVISED THAT THE PRICES QUOTED WERE PER GALLON PRICES RATHER THAN PER DRUM AS PROVIDED FOR BY THE INVITATION. STATED THAT THE PRICES SHOWN IN THE BID WERE TO BE MULTIPLIED BY FIVE TO OBTAIN THE 5-GALLON PRICES.

B-143705, AUG. 19, 1960

TO W. D. MONTS, CONTRACTING OFFICER, VETERANS ADMINISTRATION SUPPLY DEPOT, SOMERVILLE, NEW JERSEY:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 5, 1960, REFERENCE 7023/134L1, REQUESTING A DECISION AS TO THE ACTION THAT SHOULD BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY PHIPPS PRODUCTS CORPORATION TO HAVE BEEN MADE IN ITS BID ON ITEMS 15, 16, 20, 21, 22, AND 26, SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. M5-11-61, OPENED ON JULY 26, 1960.

THE INVITATION REQUESTED BIDS FOR FURNISHING VARIOUS TYPES OF ALCOHOL. THE ITEMS INVOLVED COVERED ISOPROPYL ALCOHOL, PACKAGED IN 5 GALLON DRUMS. THE INVITATION PROVIDES FOR UNIT PRICES PER DRUM.

IT IS REPORTED THAT WHEN THE BIDS WERE OPENED IT WAS NOTED THAT THE BID OF PHIPPS PRODUCTS CORPORATION WAS COMPLETELY OUT OF LINE WITH THE REST OF THE BIDS RECEIVED AND, THEREFORE, THE CORPORATION WAS CONTACTED BY TELEPHONE ON JULY 27, 1960, AND WAS REQUESTED TO VERIFY ITS BID. THE BIDDER ADVISED THAT THE PRICES QUOTED WERE PER GALLON PRICES RATHER THAN PER DRUM AS PROVIDED FOR BY THE INVITATION. THE CORPORATION CONFIRMED ITS ALLEGATION OF ERROR BY LETTER OF JULY 28, 1960, AND STATED THAT THE PRICES SHOWN IN THE BID WERE TO BE MULTIPLIED BY FIVE TO OBTAIN THE 5-GALLON PRICES. BY LETTER OF AUGUST 3, 1960, THE CORPORATION SUBMITTED A PHOTOSTATIC COPY OF THEIR WORKSHEET TO SUBSTANTIATE THEIR PRICES AS PER GALLON.

THE WORKSHEET SHOWS THAT THE PER GALLON PRICE WAS FIGURED ON THE BASIS OF PACKAGING THE ALCOHOL IN 5-GALLON DRUMS. ALSO THE CORPORATION'S BID ON ITEMS 20 AND 26 SHOWS THAT IT WAS INTENDED TO PACKAGE THE ALCOHOL IN 5- GALLON DRUMS. THUS, THERE APPEARS TO BE NO DOUBT THAT THE BID WAS BASED ON PACKAGING THE ALCOHOL IN 5-GALLON DRUMS AS REQUIRED BUT THAT THE PRICE WAS STATED AS PER GALLON RATHER THAN PER 5-GALLON DRUM.

ACCORDINGLY, SINCE ERROR WAS ALLEGED AND THE FACTS OF RECORD CONVINCINGLY SUBSTANTIATE THE INTENDED BID PRICE, THE BID OF PHIPPS PRODUCTS CORPORATION ON ITEMS 15, 16, 20, 21, 22, AND 26, SHOULD BE MULTIPLIED BY FIVE TO OBTAIN THE PRICES PER 5-GALLON DRUM. THE BID, AS SO CORRECTED, MAY BE CONSIDERED FOR AWARD.