B-144132, OCT. 10, 1960
Highlights
VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 30. THE INVITATION WAS ISSUED SEPTEMBER 2. THE BID WAS IN THE AMOUNT OF $17.89 PER CASE OF 12 ROLLS FOR DELIVERY TO SOMERVILLE. WAS IN THE AMOUNTS OF $25.58 AND $24.74. THE SECOND LOW BID WAS IN THE AMOUNT OF $24.60 ON EACH OF ITEMS NOS. 30. STATING THAT THE BID PRICE SHOULD HAVE BEEN $24.22 INSTEAD OF $17.89 PER CASE OF 12 ROLLS. IN THE LETTER IT WAS STATED THAT THE ERROR RESULTED FROM USING THE SAME UNIT PRICE ($1. 33 AND 36 AS WAS BID ON ITEMS NOS. 1 TO 23 FOR ADHESIVE PLASTER WHICH WAS NOT WATERPROOF AND. WAS LESS EXPENSIVE THAN THE WATERPROOF ADHESIVE PLASTER COVERED BY ITEMS NOS. 30. THE CIRCUMSTANCES ARE NOT SUCH.
B-144132, OCT. 10, 1960
TO MR. ADAM E. SHUMAN, CHIEF, MARKETING DIVISION, DENTAL AND SURGICAL SUPPLY, VETERANS ADMINISTRATION SUPPLY DEPOT:
REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 30, 1960, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER THE BID SUBMITTED BY THE BAY DIVISION, PARKE, DAVIS AND COMPANY, BRIDGEPORT, CONNECTICUT, IN RESPONSE TO INVITATION FOR BIDS NO. M1-61-61, MAY BE AMENDED.
THE INVITATION WAS ISSUED SEPTEMBER 2, 1960, REQUESTING BIDS--- TO BE OPENED SEPTEMBER 22, 1960--- FOR FURNISHING VARIOUS ITEMS OF HOSPITAL SUPPLIES TO BE DELIVERED AT WILMINGTON, CALIFORNIA, SOMERVILLE, NEW JERSEY AND HINES, ILLINOIS, AT VARIOUS PERIODS SPECIFIED THEREIN.
IN RESPONSE TO THE INVITATION, THE BAY DIVISION, PARKE, DAVIS AND COMPANY, SUBMITTED ITS BID ON VARIOUS ITEMS, INCLUDING THE LOW BID ON ITEMS NOS. 30, 33 AND 36, WHICH COVERED WATERPROOF SURGICAL ADHESIVE PLASTER. THE BID WAS IN THE AMOUNT OF $17.89 PER CASE OF 12 ROLLS FOR DELIVERY TO SOMERVILLE, NEW JERSEY, ALTHOUGH THE BID FOR DELIVERY OF THE SAME ARTICLE TO WILMINGTON, CALIFORNIA, AND HINES, ILLINOIS, WAS IN THE AMOUNTS OF $25.58 AND $24.74, RESPECTIVELY. THE SECOND LOW BID WAS IN THE AMOUNT OF $24.60 ON EACH OF ITEMS NOS. 30, 33 AND 36.
BECAUSE OF THE DISPARITY BETWEEN THE LOW BID AND THE OTHER BIDS RECEIVED ON ITEMS NOS. 30, 33 AND 36, THE CONTRACTING OFFICE, BY ITS LETTER DATED SEPTEMBER 23, 1960, REQUESTED VERIFICATION OF THE BID OF THE BAY DIVISION, PARKE, DAVIS AND COMPANY, ON THOSE ITEMS. BY ITS LETTER DATED SEPTEMBER 28, 1960, THE BIDDER ALLEGED ERROR IN ITS BID ON ITEMS NOS. 30, 33 AND 36, STATING THAT THE BID PRICE SHOULD HAVE BEEN $24.22 INSTEAD OF $17.89 PER CASE OF 12 ROLLS. IN THE LETTER IT WAS STATED THAT THE ERROR RESULTED FROM USING THE SAME UNIT PRICE ($1,491) IN ITEMS NOS. 30, 33 AND 36 AS WAS BID ON ITEMS NOS. 1 TO 23 FOR ADHESIVE PLASTER WHICH WAS NOT WATERPROOF AND, THEREFORE, WAS LESS EXPENSIVE THAN THE WATERPROOF ADHESIVE PLASTER COVERED BY ITEMS NOS. 30, 33 AND 36.
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
AS REQUESTED, THE PAPERS TRANSMITTED WITH YOUR LETTER OF SEPTEMBER 30, 1960, ARE RETURNED HEREWITH.