B-145027, FEB. 27, 1961

B-145027, FEB. 27, 1961

TO ACTING PUBLIC PRINTER, GOVERNMENT PRINTING OFFICE:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 8, 1961, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY ROTARY FORMS PRESS, INC., HILLSBORO, OHIO, TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO AN INVITATION FOR BIDS ON JACKET NO. 579194, DATED JANUARY 5, 1961, COVERING THE PRODUCTION OF 40,000 SETS (PLUS OR MINUS 10 PERCENT) OF FORMS SPECIFIED THEREIN, BIDS TO BE OPENED JANUARY 18, 1961.

THE INVITATION DESCRIBED THE FORMS AS 4-PART, SINGLE STUB, CARBON INTERLEAVED FORMS, DETACHED SIZE 8 BY 10 1/2 INCHES, PRINTED FACE ONLY IN BLACK INK ON WHITE C.W. WRITING PAPER, SHIPMENT TO BE MADE ON OR BEFORE FEBRUARY 27, 1961. IN YOUR LETTER IT IS STATED THAT AT THE SAME TIME YOU ADVERTISED FOR BIDS ON JACKET NO. 579238 COVERING THE PRODUCTION OF 70,000 SETS (PLUS OR MINUS 10 PERCENT) OF A 2-PART, SINGLE STUB, CARBON INTERLEAVED FORM, DETACHED SIZE 8 BY 10 1/2 INCHES, PRINTED FACE AND BACK IN BROWN INK ON WHITE C.W. LEDGER PAPER, SHIPMENT TO BE MADE ON OR BEFORE FEBRUARY 24, 1961.

IN RESPONSE TO THE INVITATION ON JACKET NO. 579194, ROTARY FORMS PRESS, INC., SUBMITTED THE LOW BID OF $402.80 ($10.07 PER M). THE 10 OTHER BIDS RECEIVED WERE IN THE AMOUNTS OF $490, $611.60, $619.20, $632, $632, $765.60, $794, $810,40, $870 AND $876.80. ON JANUARY 23, 1961, AWARD WAS MADE TO ROTARY FORMS PRESS, INC., AS LOW BIDDER AND ORDER NO. 13645 WAS PREPARED AND MAILED. ON JANUARY 27, 1961, THE CONTRACTOR STATED TO THE CONTRACTING OFFICER BY TELEPHONE THAT IT HAD MADE AN ERROR IN ITS BID BY INSERTING IN ITS BID ON JACKET NO. 579194 THE PER THOUSAND PRICE INTENDED FOR JACKET NO. 579238, WHICH ALLEGATION WAS CONFIRMED BY ITS LETTER OF THE SAME DATE REQUESTING THAT THE CONTRACT BE CANCELED AND STATING THAT ITS BID ON JACKET NO. 579194 SHOULD HAVE BEEN $18.08 INSTEAD OF $10.07 PER M. WITH ITS LETTER THE CONTRACTOR TRANSMITTED ITS PRICING SHEETS SHOWING INTENDED BIDS OF $10.07 PER M ON JACKET NO. 579238 AND $18.08 PER M ON JACKET NO. 579194.

IT IS STATED IN YOUR LETTER THAT THE CONTRACTING OFFICER RECOMMENDS THAT THE ORDER BE CANCELED AND THE JOB READVERTISED, STATING THAT $402.80 IS NOT A FAIR AND REASONABLE PRICE FOR THE SUPPLIES.

IN VIEW OF THE FACTS OF THIS MATTER AS REPORTED AND SHOWN BY THE FILE, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT ROTARY FORMS PRESS, INC., MADE A BONA FIDE ERROR IN ITS BID AS ALLEGED AND EXPLAINED BY IT, INTENDING ITS BID TO BE $723.20 INSTEAD OF $402.80. ALSO, BECAUSE OF THE DISPARITY BETWEEN ITS BID AND THE OTHER BIDS RECEIVED (ITS BID BEING ONLY 82 PERCENT OF THE NEXT LOW BID AND LESS THAN HALF OF EACH OF THE THREE HIGHEST BIDS), IT IS CONCLUDED THAT THE CONTRACTING OFFICER SHOULD HAVE REQUESTED VERIFICATION BEFORE MAKING THE AWARD. ACCORDINGLY, THE CONTRACT MAY BE CANCELED WITHOUT LIABILITY TO ROTARY FORMS PRESS, INC. ..END :