B-144016, SEP. 28, 1960

B-144016: Sep 28, 1960

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VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER (7018/134J) DATED SEPTEMBER 16. BY THE CITED INVITATION BIDS WERE REQUESTED. THE ABSTRACT OF BIDS SHOWS THAT THREE BIDS WERE RECEIVED. YOU STATE THAT WHEN EVALUATING BIDS IT WAS NOTED THAT THE PRICES QUOTED BY THE MISKELLA INFRA-RED COMPANY WERE CONSIDERABLY LOWER THAN THE PRICES OFFERED BY THE OTHER TWO BIDDERS AND THE PRICES PREVIOUSLY PAID FOR THIS ITEM. AT THE SAME TIME ADVISING THE BIDDER THAT THE PREVIOUS PRICE RANGE ON THIS ITEM WAS FROM $600 TO $700. IT WAS EXPLAINED THAT ITS PRICE WAS BASED ON FURNISHING ITS NEW PFC MACHINE. THAT WHILE THERE WAS NO RELATIONSHIP BETWEEN THE BUNN GLOVE CONDITIONER SPECIFIED IN THE BID INVITATION AND THE BIDDER'S PFC MACHINE.

B-144016, SEP. 28, 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, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN ON THE BID OF THE MISKELLA INFRA-RED COMPANY, CLEVELAND, OHIO, SUBMITTED IN RESPONSE TO INVITATION NO. M3-88-61 ISSUED AUGUST 16, 1960.

BY THE CITED INVITATION BIDS WERE REQUESTED--- OPENING DATE SEPTEMBER 2, 1960--- FOR FURNISHING "DRYER AND POWDERING APPARATUS (BUNN GLOVE CONDITIONER)" IN ACCORDANCE WITH THE SPECIFICATIONS SET FORTH THEREIN FOR DELIVERY AT THE DESTINATIONS SPECIFIED AND DURING THE PERIODS INDICATED. THE ABSTRACT OF BIDS SHOWS THAT THREE BIDS WERE RECEIVED, INCLUDING ONE FROM THE MISKELLA INFRA-RED COMPANY.

YOU STATE THAT WHEN EVALUATING BIDS IT WAS NOTED THAT THE PRICES QUOTED BY THE MISKELLA INFRA-RED COMPANY WERE CONSIDERABLY LOWER THAN THE PRICES OFFERED BY THE OTHER TWO BIDDERS AND THE PRICES PREVIOUSLY PAID FOR THIS ITEM. YOU, THEREFORE, BY TELEGRAM DATED SEPTEMBER 6, 1960, REQUESTED THE COMPANY TO CONFIRM ITS UNIT PRICES BASED ON FURNISHING A BUNN GLOVE CONDITIONER, AT THE SAME TIME ADVISING THE BIDDER THAT THE PREVIOUS PRICE RANGE ON THIS ITEM WAS FROM $600 TO $700.

IN RESPONSE TO THE TELEGRAM THE COMPANY, IN LETTER DATED SEPTEMBER 8, 1960, TO YOU, CONFIRMED ITS BASE PRICE OF $398 BUT STATED THAT IT HAD MADE AN ERROR IN PREPARING AND SUBMITTING ITS BID. IT WAS EXPLAINED THAT ITS PRICE WAS BASED ON FURNISHING ITS NEW PFC MACHINE, DESCRIBED IN THE ACCOMPANYING CIRCULAR, AND THAT WHILE THERE WAS NO RELATIONSHIP BETWEEN THE BUNN GLOVE CONDITIONER SPECIFIED IN THE BID INVITATION AND THE BIDDER'S PFC MACHINE, THE INVITATION SPECIFICATION SHEET INDICATED THAT A MISKELLA GLOVE CONDITIONER COULD BE DEVELOPED TO MEET THOSE SPECIFICATIONS. HOWEVER, THE COMPANY LATER LEARNED THAT IT COULD NEITHER DEVELOP A GLOVE CONDITIONER MEETING THE REQUIRED SPECIFICATIONS, NOR BUY THE SPECIFIED MACHINE IN TIME TO CARRY OUT ANY CONTRACT THAT MIGHT BE AWARDED ON ITS BID. THE COMPANY THEREFORE REQUESTED THAT IT BE RELEASED FROM THE PRESENT COMMITMENT ON ITS ERRONEOUS BID.

ACCORDINGLY, AND SINCE IT WAS APPARENT TO YOU THAT THE BID WAS POSSIBLY ERRONEOUS AS YOU BELIEVED THAT EQUIPMENT MEETING THE SPECIFICATIONS OF THE INVITATION COULD NOT POSSIBLY BE FURNISHED AT THE BID PRICES QUOTED BY THE MISKELLA INFRA-RED COMPANY, AND SINCE PRIOR TO AWARD THE COMPANY EXPLAINED THAT ITS BID WAS ERRONEOUS AND THAT IT IS UNABLE TO FURNISH EQUIPMENT MEETING THE INVITATION SPECIFICATIONS, THE COMPANY'S BID MAY BE DISREGARDED IN MAKING AWARD PURSUANT TO INVITATION NO. M3-88-61.