B-144009, SEP. 29, 1960

B-144009: Sep 29, 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 SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER (7018/134J) DATED SEPTEMBER 16. BY THE CITED INVITATION BIDS WERE SOLICITED. YOU STATE THAT WHEN BIDS WERE OPENED. STATED THAT THE IDEAL FURNITURE MANUFACTURING COMPANY'S BID WAS IN ERROR BECAUSE ITS PRICE QUOTATIONS WERE BASED ON A MISINTERPRETATION OF THE SPECIFICATIONS. WHILE THE COMPANY'S BID WAS BASED ON A COST OF $5.60 NET PER TABLE FOR THE LEGS AND MOUNTING OF ITS STANDARD DINETTE TYPE OF CONSTRUCTION. THE COST OF THE "EVER-STEADY BASE AND LEGS" MEETING THE INVITATION SPECIFICATIONS IS BETWEEN $15 AND $20 PER TABLE. SINCE YOU BELIEVED THAT ITS BID WAS ERRONEOUS AND SINCE THE COMPANY ALLEGED AND EXPLAINED THE ERROR PRIOR TO AWARD.

B-144009, SEP. 29, 1960

TO MR. J. W. PARKER, JR., SUPERVISORY PROCUREMENT AGENT, MARKETING DIVISION M-3, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER (7018/134J) DATED SEPTEMBER 16, 1960, WITH ENCLOSURES, IN WHICH YOU REQUEST A DECISION CONCERNING AN ERROR WHICH IDEAL FURNITURE MANUFACTURING COMPANY, CHICAGO, ILLINOIS, ALLEGES IT MADE IN ITS BID SUBMITTED IN RESPONSE TO IFB-M3-87-61, ISSUED AUGUST 15, 1960.

BY THE CITED INVITATION BIDS WERE SOLICITED--- OPENING DATE SEPTEMBER 9, 1960--- FOR FURNISHING 14 ITEMS OF "TABLES, DINING, LAMINATED PLASTIC TOP, VARIOUS" IN ACCORDANCE WITH THE SPECIFICATIONS SET FORTH THEREIN, FOR DELIVERY DURING THE PERIODS AND AT THE DESTINATIONS INDICATED.

YOU STATE THAT WHEN BIDS WERE OPENED, AS SCHEDULED, YOU SUSPECTED AN ERROR IN THE LOW BID OF IDEAL FURNITURE MANUFACTURING COMPANY SINCE IN THE TWELVE YEARS OF PURCHASING THESE TABLES THE PRICES HAD NEVER BEEN WITHIN 25 PERCENT OF IDEAL'S QUOTED LOW PRICES AND, ALSO, IN VIEW OF THE HIGHER PRICES OF THE OTHER BIDDERS. THEREAFTER BUT PRIOR TO AWARD, DURING VISITS TO YOUR OFFICE, REPRESENTATIVES OF THE LOW BIDDER, UPON THE SPECIFICATION REQUIREMENTS OF THE INVITATION BEING CALLED TO THEIR ATTENTION, STATED THAT THE IDEAL FURNITURE MANUFACTURING COMPANY'S BID WAS IN ERROR BECAUSE ITS PRICE QUOTATIONS WERE BASED ON A MISINTERPRETATION OF THE SPECIFICATIONS. BY LETTER DATED SEPTEMBER 14, 1960, ADDRESSED TO YOU, MR. MEYER DAVIS, VICE PRESIDENT OF THE COMPANY, CONFIRMED THE ALLEGATION AND EXPLANATION OF ERROR IN BID. HE STATED THAT, WHILE THE COMPANY'S BID WAS BASED ON A COST OF $5.60 NET PER TABLE FOR THE LEGS AND MOUNTING OF ITS STANDARD DINETTE TYPE OF CONSTRUCTION, THE COST OF THE "EVER-STEADY BASE AND LEGS" MEETING THE INVITATION SPECIFICATIONS IS BETWEEN $15 AND $20 PER TABLE. HE, THEREFORE, REQUESTED THAT THE COMPANY BE RELEASED FROM ITS PROPOSAL BECAUSE OF THE ALLEGED ERROR.

THERE APPEARS LITTLE, IF ANY, DOUBT THAT IDEAL FURNITURE MANUFACTURING COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, AND SINCE YOU BELIEVED THAT ITS BID WAS ERRONEOUS AND SINCE THE COMPANY ALLEGED AND EXPLAINED THE ERROR PRIOR TO AWARD, ITS BID MAY BE DISREGARDED.