B-145137, MAR. 3, 1961

B-145137: Mar 3, 1961

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VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER (7018/134J) DATED FEBRUARY 20. YOU STATE THAT UPON EXAMINING THE BIDS AFTER OPENING IT WAS NOTED THAT THE PRICES QUOTED BY KELVINATOR DIVISION FOR THE WASHING MACHINES WERE LOWER THAN THE PRICES IT QUOTED FOR THE DRYING TUMBLERS. REALIZING THAT WASHING MACHINES HAVE ALWAYS COST MORE THAN DRYING TUMBLERS IN PREVIOUS PROCUREMENTS AND THAT THE PRICES FOR SUCH MACHINES WERE CONSISTENTLY QUOTED HIGHER BY THE OTHER FOUR BIDDERS ON THE PRESENT INVITATION. KELVINATOR DIVISION ADVISED YOU THAT THE PRICES QUOTED FOR FURNISHING THE WASHING MACHINES AND THE DRYING TUMBLERS WERE INADVERTENTLY REVERSED. IT WAS EXPLAINED THAT THE ERROR PROBABLY OCCURRED BECAUSE PREVIOUS INVITATIONS HAD LISTED THE WASHING MACHINES AT THE TOP OF THE PAGE WHEREAS THE INSTANT INVITATION LISTED THEM BELOW THE DRYERS.

B-145137, MAR. 3, 1961

TO CONTRACTING OFFICER, MARKETING DIVISION M3, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER (7018/134J) DATED FEBRUARY 20, 1961, WITH ENCLOSURES, REQUESTING OUR DECISION IN REGARD TO AN ERROR ALLEGED BY KELVINATOR DIVISION, AMERICAN MOTORS SALES CORPORATION, CHICAGO, ILLINOIS, IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. M3-167-61 ISSUED JANUARY 26, 1961.

THE INVITATION SOLICITED BIDS FOR FURNISHING TO THE VETERANS ADMINISTRATION HOUSEHOLD LAUNDRY WASHING MACHINES AND DRYING TUMBLERS AS SPECIFIED THEREIN, WITH DELIVERY AT THE DESTINATIONS INDICATED AS REQUIRED.

YOU STATE THAT UPON EXAMINING THE BIDS AFTER OPENING IT WAS NOTED THAT THE PRICES QUOTED BY KELVINATOR DIVISION FOR THE WASHING MACHINES WERE LOWER THAN THE PRICES IT QUOTED FOR THE DRYING TUMBLERS. REALIZING THAT WASHING MACHINES HAVE ALWAYS COST MORE THAN DRYING TUMBLERS IN PREVIOUS PROCUREMENTS AND THAT THE PRICES FOR SUCH MACHINES WERE CONSISTENTLY QUOTED HIGHER BY THE OTHER FOUR BIDDERS ON THE PRESENT INVITATION, YOU CONTACTED MR. ROCCO OF KELVINATOR DIVISION, WHO SIGNED THE BID, AND REQUESTED HIM TO CONFIRM THE COMPANY'S PRICES. BY LETTER DATED FEBRUARY 16, 1961, KELVINATOR DIVISION ADVISED YOU THAT THE PRICES QUOTED FOR FURNISHING THE WASHING MACHINES AND THE DRYING TUMBLERS WERE INADVERTENTLY REVERSED. IT WAS EXPLAINED THAT THE ERROR PROBABLY OCCURRED BECAUSE PREVIOUS INVITATIONS HAD LISTED THE WASHING MACHINES AT THE TOP OF THE PAGE WHEREAS THE INSTANT INVITATION LISTED THEM BELOW THE DRYERS. THE COMPANY REQUESTED THAT ITS BID BE NULLIFIED ON THE GROUND OF UNINTENTIONAL ERROR.

THE RECORD LEAVES LITTLE, IF ANY, DOUBT THAT KELVINATOR DIVISION MADE AN ERROR, AS ALLEGED, IN SUBMITTING ITS BID FOR FURNISHING THE RESPECTIVE ITEMS OF WASHING MACHINES AND DRYING TUMBLERS. ACCORDINGLY, AND SINCE IT WAS APPARENT TO YOU THAT THE BID WAS PROBABLY ERRONEOUS AND SINCE UPON REQUEST FOR VERIFICATION, PRIOR TO AWARD, THE BIDDER ALLEGED THAT IT MADE AN ERROR IN ITS BID AS TO THE PRICES QUOTED ON THE WASHING MACHINES AND THE DRYING TUMBLERS AND EXPLAINED HOW THE ERROR OCCURRED, ACCEPTANCE OF THE BID WOULD NOT RESULT IN A VALID AND BINDING CONTRACT. THE BID OF KELVINATOR DIVISION THEREFORE MAY BE DISREGARDED IN MAKING AN AWARD PURSUANT TO INVITATION NO. M3-167-61.

THE PAPERS SUBMITTED WITH YOUR LETTER, EXCEPT THE ABSTRACT OF BIDS AND THE LETTER FROM KELVINATOR DIVISION AS TO THE ALLEGED ERROR, ARE RETURNED.