B-144121, OCT. 19, 1960

B-144121: Oct 19, 1960

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GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 28. GS-03S 21705 WAS AWARDED. WAS ONE OF FOUR BIDDERS FOR ITEMS NO. 7 THROUGH 13. WAS $1.10 FOR EACH SPECIFIED LENGTH. THE THREE OTHER BIDS RECEIVED FOR THIS ITEM WERE $11.182. WA-S-22988 WAS ISSUED AGAINST THE CONTRACT FOR DELIVERY OF 90 LENGTHS OF CONDUIT AS DESCRIBED IN ITEM NO. 13. AVON NOTIFIED THE CONTRACTING OFFICER THAT AN ERROR HAD BEEN MADE IN PLACING THE DECIMAL POINT IN ITS BID FOR ITEM NO. 13 AND THE CORRECT PRICE SHOULD HAVE BEEN $11 PER LENGTH. AVON POINTED OUT TO THE CONTRACTING OFFICER THAT ITS PRICE FOR THE SAME ITEM UNDER THE PREVIOUS CONTRACT WITH GSA WAS $12.10 PER LENGTH AND FURNISHED A PRICE LIST FROM ITS SUPPLIER INDICATING THAT THE WHOLESALE PRICE FOR CONDUIT IN CONFORMANCE WITH THE FEDERAL SPECIFICATION REQUIRED BY ITEM NO. 13 WAS $10.369 PER LENGTH AT THE TIME OF THE BID.

B-144121, OCT. 19, 1960

TO ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 28, 1960, REQUESTING OUR DECISION ON GRANTING RELIEF FOR AN ALLEGED MISTAKE IN THE BID OF AVON ELECTRICAL SUPPLIES, INCORPORATED, ON WHICH CONTRACT NO. GS-03S 21705 WAS AWARDED.

THE FEDERAL SUPPLY SERVICE, REGION 3, GENERAL SERVICES ADMINISTRATION, WASHINGTON, D.C., BY INVITATION NO. WA-IW-R-1054-6-13 60, DATED MAY 13, 1960, REQUESTED BIDS FOR VARIOUS TYPES OF TUBING AND CONDUIT FOR THE PERIOD JULY 1, 1960, THROUGH JUNE 30, 1961. AVON ELECTRICAL SUPPLIES, INCORPORATED, WAS ONE OF FOUR BIDDERS FOR ITEMS NO. 7 THROUGH 13, IDENTIFIED IN THE INVITATION AS GROUP II.

AVON'S BID FOR ITEM NO. 13, 3-INCH DIAMETER ELECTRICAL CONDUIT OF RIGID, ZINC COATED STEEL IN LENGTHS OF 9 FEET 10 1/2 INCHES, WAS $1.10 FOR EACH SPECIFIED LENGTH. THE THREE OTHER BIDS RECEIVED FOR THIS ITEM WERE $11.182, $12.275, AND $15.50. THE CONTRACTING OFFICER DID NOT REQUEST VERIFICATION OF AVON'S BID AND AWARDED CONTRACT NO. GS-03S 21705 TO AVON ON THE BASIS OF ITS LOW AGGREGATE BID FOR ITEMS 7 THROUGH 13.

ON JULY 14, 1960, PURCHASE ORDER NO. WA-S-22988 WAS ISSUED AGAINST THE CONTRACT FOR DELIVERY OF 90 LENGTHS OF CONDUIT AS DESCRIBED IN ITEM NO. 13. BY LETTER DATED JULY 15, 1960, AVON NOTIFIED THE CONTRACTING OFFICER THAT AN ERROR HAD BEEN MADE IN PLACING THE DECIMAL POINT IN ITS BID FOR ITEM NO. 13 AND THE CORRECT PRICE SHOULD HAVE BEEN $11 PER LENGTH.

BY LETTER DATED JULY 28, 1960, AVON POINTED OUT TO THE CONTRACTING OFFICER THAT ITS PRICE FOR THE SAME ITEM UNDER THE PREVIOUS CONTRACT WITH GSA WAS $12.10 PER LENGTH AND FURNISHED A PRICE LIST FROM ITS SUPPLIER INDICATING THAT THE WHOLESALE PRICE FOR CONDUIT IN CONFORMANCE WITH THE FEDERAL SPECIFICATION REQUIRED BY ITEM NO. 13 WAS $10.369 PER LENGTH AT THE TIME OF THE BID. AVON REQUESTED THAT ITS ERROR IN PLACING THE DECIMAL POINT BE CORRECTED BY CHANGING THE CONTRACT PRICE FOR ITEM NO. 13 FROM $1.10 TO $11.

A COMPARISON OF AVON'S BID WITH THE THREE OTHER BIDS RECEIVED FOR ITEM NO. 13 SHOWS A WIDE DISPARITY, AND THE POSSIBILITY OF A MISTAKE THEREIN IS APPARENT. THE BID SHOULD NOT HAVE BEEN ACCEPTED WITHOUT POINTING OUT THE POSSIBILITY OF A MISTAKE TO AVON AND REQUESTING THAT COMPANY TO VERIFY ITS BID.

AVON HAS ALLEGED A MISTAKE IN PLACING THE DECIMAL POINT IN ITS BID AND HAS SUBMITTED EVIDENCE TO ESTABLISH THE AMOUNT IT INTENDED TO BID. SINCE THE AMOUNT AVON INTENDED TO BID REMAINS LOWER THAN ANY OTHER BID, REFORMATION OF CONTRACT NO. GS-03S-21705 IS AUTHORIZED TO ALLOW A UNIT PRICE OF $11 PER LENGTH ON ITEM NO. 13. A REFERENCE TO THIS DECISION SHOULD BE MADE IN THE INSTRUMENT USED TO EFFECT THE REFORMATION.