B-143887, SEP. 23, 1960

B-143887: Sep 23, 1960

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VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 1. TO HAVE BEEN MADE IN ITS BID OPENED ON AUGUST 25. BIDS WERE REQUESTED FOR FURNISHING. IT WAS NOTED THAT THE BID OF FRANK SAMUEL AND COMPANY. ON ITEMS 22 AND 23 WAS CONSIDERABLY LOWER THAN ANY OTHER BID RECEIVED ON THOSE ITEMS AND. THE CORPORATION WAS REQUESTED BY TELEPHONE TO VERIFY ITS BID. IT IS ALSO STATED THAT. A REPRESENTATIVE OF THE CORPORATION TELEPHONED ALLEGING THAT A MISTAKE HAD BEEN MADE IN THE CORPORATION'S BID AND THAT THE CORRECT UNIT PRICES FOR ITEMS 22 AND 23 WERE $0.79 AND $0.77. THERE IS NO DOUBT THAT THE BID OF $0.52 AND $0.495 FOR ITEMS 22 AND 23. WAS ERRONEOUS. SINCE IT WAS BELIEVED THAT THE BID OF THE CORPORATION WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED BY THE CORPORATION PRIOR TO AWARD.

B-143887, SEP. 23, 1960

TO MR. W. D. MONTS, CONTRACT SPECIALIST, MARKETING DIVISION FOR DRUGS AND CHEMICALS, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 1, 1960 (FILE REFERENCE 7023/134L1), WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY FRANK SAMUEL AND COMPANY, INC., DIVISION OF HOWE SOUND COMPANY, TO HAVE BEEN MADE IN ITS BID OPENED ON AUGUST 25, 1960.

BY INVITATION NO. M5-28-61, BIDS WERE REQUESTED FOR FURNISHING, AMONG OTHER ITEMS, CERTAIN QUANTITIES OF QUINIDINE SULFATE TABLETS, 0.2 GM. (3 GR.), 100S, STOCK NO. 1387400, TO BE DELIVERED TO THE VETERANS ADMINISTRATION SUPPLY DEPOTS AT WILMINGTON, CALIFORNIA, AND HINES, ILLINOIS, ITEMS 22 AND 23. IN RESPONSE FRANK SAMUEL AND COMPANY, INC., SUBMITTED A BID DATED AUGUST 22, 1960, OFFERING TO FURNISH THE QUINIDINE SULFATE TABLETS UNDER ITEMS 22 AND 23 AT PRICES OF $0.52 AND $0.495 PER BOTTLE. THE ABSTRACT OF BIDS SHOWS THAT THE UNIT PRICES QUOTED BY THE EIGHT OTHER BIDDERS ON ITEM 22 RANGED FROM $0.71 TO $2.32 AND THAT THE UNIT PRICES ON ITEM 23 RANGED FROM $0.70 TO $2.32.

YOU STATE THAT, UPON EVALUATING THE BIDS, IT WAS NOTED THAT THE BID OF FRANK SAMUEL AND COMPANY, INC., ON ITEMS 22 AND 23 WAS CONSIDERABLY LOWER THAN ANY OTHER BID RECEIVED ON THOSE ITEMS AND, THEREFORE, THE CORPORATION WAS REQUESTED BY TELEPHONE TO VERIFY ITS BID. IT IS ALSO STATED THAT, LATER THAT SAME DAY, A REPRESENTATIVE OF THE CORPORATION TELEPHONED ALLEGING THAT A MISTAKE HAD BEEN MADE IN THE CORPORATION'S BID AND THAT THE CORRECT UNIT PRICES FOR ITEMS 22 AND 23 WERE $0.79 AND $0.77, RESPECTIVELY.

IN A CONFIRMING LETTER DATED AUGUST 29, 1960, IN WHICH IT REQUESTED THAT ITS UNIT PRICES FOR ITEMS 22 AND 23 BE CORRECTED TO READ $0.79 AND $0.77, RESPECTIVELY, THE CORPORATION STATED THAT ITS SUPPLIER HAD FURNISHED IT WITH AN ERRONEOUS QUOTATION ON THE QUINIDINE SULFATE TABLETS. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED ITS WORKSHEET AND A COPY OF THE ERRONEOUS QUOTATION RECEIVED FROM ITS SUPPLIER, RICHLYN LABORATORIES.

ON THE RECORD, THERE IS NO DOUBT THAT THE BID OF $0.52 AND $0.495 FOR ITEMS 22 AND 23, RESPECTIVELY, WAS ERRONEOUS. ACCORDINGLY, SINCE IT WAS BELIEVED THAT THE BID OF THE CORPORATION WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED BY THE CORPORATION PRIOR TO AWARD, THE BID OF FRANK SAMUEL AND COMPANY, INC., WITH RESPECT TO ITEMS 22 AND 23--- WHICH EVEN IF PROPER FOR CORRECTION WOULD NOT BE THE LOWEST BID ON THOSE ITEMS--- MAY BE DISREGARDED IN MAKING THE AWARD.