B-144652, DEC. 30, 1960

B-144652, DEC. 30, 1960

TO MR. ADAM E. SHUMAN, CHIEF, MARKETING DIVISION, DENTAL AND SURGICAL SUPPLY, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER (134H) DATED DECEMBER 16, 1960, WITH ENCLOSURES, IN WHICH YOU REQUEST A DECISION AS TO WHETHER OMEGA PRECISION MEDICAL INSTRUMENT CO., INC., PASSAIC, NEW JERSEY, MAY BE PERMITTED TO WITHDRAW ITS BID ON ITEMS NOS. 26-57, INVITATION NO. N1 80-61.

BY THE CITED INVITATION BIDS WERE REQUESTED--- OPENING DATE NOVEMBER 21, 1960--- FOR FURNISHING "SYRINGE, LUER INTERCHANGEABLE; CATHETER AND SYRINGE LUER, SPECIAL PURPOSE, INSULIN AND UBERCULIN" IN ACCORDANCE WITH SPECIFICATIONS DESIGNATED IN THE INVITATION, FOR DELIVERY AT THE DESTINATIONS AND DURING THE PERIODS SPECIFIED.

THE ABSTRACT OF BIDS SHOWS THAT TWO BIDDERS, INCLUDING OMEGA PRECISION MEDICAL INSTRUMENT CO., INC., SUBMITTED BIDS ON ITEMS NOS. 26-57.

YOU STATE THAT AFTER OPENING AND UPON REVIEW OF THE BIDS OMEGA WAS REQUESTED BY TELEPHONE, ON DECEMBER 2, 1960, TO CONFIRM ITS UNIT PRICES ON ITEMS NOS. 26-57 AND THE COMPANY WAS ASKED IF IT HAD REVIEWED THOROUGHLY THE GOVERNMENT SPECIFICATIONS FOR THOSE ITEMS. IN REPLY, BY LETTER DATED DECEMBER 5, 1960, THE COMPANY ADVISED YOU THAT, BECAUSE OF THE "NEW SPECIFICATIONS" FOR ITEMS NOS. 26-57 CALLED TO ITS ATTENTION AT THE TIME OF THE TELEPHONE CALL, CHANGES IN TOOLING EQUIPMENT AND GAUGES TO MANUFACTURE TO THESE NEW DIMENSIONS WOULD BE REQUIRED AND THAT THIS WOULD MEAN A DELIVERY SCHEDULE OF MAY AND AUGUST 1961. THE COMPANY REQUESTED THAT, IF THIS PROJECTED SCHEDULE IS SATISFACTORY AND IF IT IS FORTUNATE ENOUGH TO BE LOW BIDDER,"SOURCE INSPECTION" BE FURNISHED.

YOU FURTHER STATE THAT ON DECEMBER 9 YOU AGAIN CONTACTED OMEGA REQUESTING IT TO CONFIRM ITS BID PRICES. BY LETTER OF DECEMBER 9, THE COMPANY CONFIRMED DELIVERY AND PRICES ON ITEMS NOS. 1-25. WITH REFERENCE TO ITEMS NOS. 26-56, IT STATED THAT "WE HAVE INFORMED YOU THAT IT IS IMPOSSIBLE TO MEET DELIVERY SCHEDULE. WE ALSO BROUGHT TO YOUR ATTENTION THAT CHANGES IN SPECIFICATIONS WOULD REQUIRE US TO INVEST IN NEW TOOLING AND GAUGING EQUIPMENT. SINCE THIS CHANGE IN SPECIFICATIONS THROWS A BURDEN ON BOTH OMEGA AND THE VETERANS ADMINISTRATION WE WOULD NOT LIKE TO CONFIRM OUR PRICES ON ITEMS NOS. 26-57 AND ASK TO BE RELEASED FROM THESE ITEMS.'

IN VIEW OF THE FOREGOING, PARTICULARLY SINCE IT WAS APPARENT TO YOU THAT IN SUBMITTING ITS BID THE COMPANY PROBABLY HAD MISINTERPRETED THE "NEW SPECIFICATION REQUIREMENTS" FOR THE INSTRUMENTS CALLED FOR BY THE INVITATION AS TO ITEMS NOS. 26-57, AND SINCE THE COMPANY UPON REQUEST FOR VERIFICATION OF ITS BID PRICES AND A REVIEW OF THE SPECIFICATIONS PROMPTLY ADVISED YOU THAT IT COULD NOT CONFIRM ITS BID PRICES OR MEET THE SPECIFIED DELIVERY SCHEDULES FOR THOSE ITEMS BECAUSE OF CHANGES IN MANUFACTURING EQUIPMENT NECESSITATED BY THE "NEW SPECIFICATION REQUIREMENTS," ACCEPTANCE OF THE COMPANY'S BID AS TO ITEMS NOS. 26-57 WOULD NOT RESULT IN A VALID AND BINDING CONTRACT. ACCORDINGLY, OMEGA'S BID AS TO THOSE ITEMS MAY BE DISREGARDED.

THE DOCUMENTS, EXCEPT THE ABSTRACT OF BIDS, FORWARDED WITH YOUR LETTER ARE RETURNED, AS REQUESTED.