B-145105, FEB. 27, 1961

B-145105: Feb 27, 1961

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EWALD: REFERENCE IS MADE TO YOUR LETTER (5104/134) DATED FEBRUARY 16. TO HAVE BEEN MADE IN ITS BID ON ITEM NO. 15 OF BID INVITATION NO. 61-26 ISSUED BY YOU ON FEBRUARY 3. THE ABSTRACT OF BIDS SHOWS THAT FOUR BIDS WERE RECEIVED ON ITEM NO. 15. INC. 1.64 OAKLAND MEAT COMPANY 1.7510 YOU STATE THAT AT THE TIME BIDS WERE OPENED AND PRIOR TO AWARD SWIFT AND COMPANY WAS REQUESTED BY TELEPHONE TO CONFIRM ITS BID OF $0.49 PER POUND INASMUCH AS A MISTAKE IN ITS BID WAS SUSPECTED BECAUSE OF THE LARGE VARIANCE IN BID PRICES RECEIVED AND. STATING THAT THE QUOTED PRICE OF $0.49 PER POUND WAS "A DECIDED ERROR. IN SUBSTANTIATION OF THE MISTAKE INVITED ATTENTION TO THE FACT THAT ITS LOS ANGELES PLANT "DOES NOT FABRICATE BEEF CUTS - ONLY PRIMAL BOND-IN CUTS ARE OFFERED.'.

B-145105, FEB. 27, 1961

TO MR. WILLIAM L. EWALD:

REFERENCE IS MADE TO YOUR LETTER (5104/134) DATED FEBRUARY 16, 1961, WITH ENCLOSURES, REQUESTING OUR DECISION IN REGARD TO AN ERROR ALLEGED BY SWIFT AND COMPANY, LOS ANGELES, CALIFORNIA, TO HAVE BEEN MADE IN ITS BID ON ITEM NO. 15 OF BID INVITATION NO. 61-26 ISSUED BY YOU ON FEBRUARY 3, 1961.

THE INVITATION SOLICITED BIDS FOR FURNISHING TO THE VETERANS ADMINISTRATION HOSPITAL, SAN FERNANDO, CALIFORNIA, DURING THE PERIOD MARCH 1 THROUGH MARCH 31, 1961, CERTAIN ITEMS OF PACKING HOUSE AND DAIRY PRODUCTS AS SPECIFIED THEREIN. ITEM NO. (FROZEN) (ROLL, EXCLUDING TRIMMINGS) U.S. CHOICE GRADE (24-1.560) 15, HERE IN QUESTION, SPECIFIED 1,100 POUNDS OF "BEEF RIB, BONELESS, (FROZEN) (ROLL, EXCLUDING TRIMMINGS) U. S. CHOICE GRADE (24-1.560) * * * (6-10 LBS. EA. ( .' THE ABSTRACT OF BIDS SHOWS THAT FOUR BIDS WERE RECEIVED ON ITEM NO. 15, AS FOLLOWS: TABLE

UNIT PRICE

BIDDER PER POUND

SWIFT AND COMPANY $0.49

IDEAL PACKING COMPANY 1.23

WILSON AND COMPANY, INC. 1.64

OAKLAND MEAT COMPANY 1.7510

YOU STATE THAT AT THE TIME BIDS WERE OPENED AND PRIOR TO AWARD SWIFT AND COMPANY WAS REQUESTED BY TELEPHONE TO CONFIRM ITS BID OF $0.49 PER POUND INASMUCH AS A MISTAKE IN ITS BID WAS SUSPECTED BECAUSE OF THE LARGE VARIANCE IN BID PRICES RECEIVED AND, ALSO, BECAUSE OF THE FACT THAT SWIFT AND COMPANY HAD NEVER BID ON THIS ITEM ON PAST INVITATIONS. IN REPLY THE COMPANY IN LETTER DATED FEBRUARY 15, 1961, REQUESTED WITHDRAWAL OF ITS BID ON ITEM NO. 15, STATING THAT THE QUOTED PRICE OF $0.49 PER POUND WAS "A DECIDED ERROR, IN PRICING IN LINE WITH SPECIFICATIONS" AND, IN SUBSTANTIATION OF THE MISTAKE INVITED ATTENTION TO THE FACT THAT ITS LOS ANGELES PLANT "DOES NOT FABRICATE BEEF CUTS - ONLY PRIMAL BOND-IN CUTS ARE OFFERED.'

THE RECORD LEAVES LITTLE DOUBT, IF ANY, THAT SWIFT AND COMPANY MADE AN ERROR, AS ALLEGED, IN SUBMITTING ITS BID ON ITEM NO. 15. ACCORDINGLY, AND SINCE IT WAS APPARENT TO YOU THAT THE BID WAS POSSIBLY ERRONEOUS AND SINCE UPON REQUEST FOR VERIFICATION PRIOR TO AWARD THE COMPANY ALLEGED THAT IT MADE AN ERROR IN SUBMITTING ITS BID ON THAT ITEM, ACCEPTANCE OF THE COMPANY'S BID WOULD NOT RESULT IN A VALID AND BINDING CONTRACT. THE BID OF SWIFT AND COMPANY THEREFORE MAY BE DISREGARDED IN MAKING AWARD ON ITEM NO. 15 OF BID INVITATION NO. 61 26.

THE PAPERS SUBMITTED WITH YOUR LETTER, EXCEPT THE ABSTRACT OF BIDS AND THE LETTER FROM SWIFT AND COMPANY PERTAINING TO THE ALLEGED ERROR, ARE RETURNED.