B-145403, APR. 3, 1961

B-145403, APR. 3, 1961

TO CONTRACTING OFFICER, VETERANS ADMINISTRATION HOSPITAL, NORTHPORT, LONG ISLAND:

REFERENCE IS MADE TO YOUR LETTER DATED MARCH 20, 1961, WITH ENCLOSURES, FILE 5108-134A, SUBMITTING FOR OUR DECISION A QUESTION AS TO THE APPROPRIATE ACTION TO BE TAKEN REGARDING AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID OF ANTHONY DALLY AND SONS, INC., UNDER INVITATION NO. 61- 33.

IN RESPONSE TO THE INVITATION ISSUED ON FEBRUARY 27, 1961, ANTHONY DALLY AND SONS, INC., SUBMITTED A BID OFFERING TO FURNISH ITEM NO. 1, COVERING 80 SQUARES OF ROOFING SLATE AT $21.50 A SQUARE, OR FOR A TOTAL PRICE OF $1,720, AND ITEM NO. 2, COVERING 20 SQUARES OF A LARGER SIZE ROOFING SLATE AT $21.50 EACH, OR FOR A TOTAL PRICE, AS SHOWN ON THE BID FORM, OF $420. THE CORPORATION'S BID FOR BOTH ITEMS WAS SHOWN TO TOTAL $2,140. THE GOVERNMENT CONTRACTING OFFICER, NOTING THE COMPUTATION ERROR IN ITEM NO. 2, REQUESTED ANTHONY DALLY TO VERIFY ITS BID. BY LETTER DATED MARCH 15, 1961, THE CORPORATION STATED THAT AN ERROR HAD BEEN MADE IN EXTENDING THE UNIT PRICE FOR ITEM NO. 2. HOWEVER, THE CORPORATION ALSO CLAIMED THAT AN ADDITIONAL ERROR HAD BEEN MADE IN THAT ITS TOTAL BID OF $2,140--- $2,150 CORRECT AMOUNT--- WAS BASED ON AN F.O.B. QUARRY SHIPMENT INSTEAD OF F.O.B. POINT OF DESTINATION, AS REQUIRED. THE CORPORATION REQUESTS THAT ITS BID BE REVISED TO SHOW THE INTENDED TOTAL PRICE OF $2,440 DELIVERED TO THE JOB SITE WHICH IS THE EXACT AMOUNT OF THE SECOND LOW BID.

WITH RESPECT TO THE OMISSION OF THE FREIGHT COST, WHICH IS THE ONLY SUBSTANTIVE ERROR HERE INVOLVED, OUR OFFICE CONSISTENTLY HAS HELD THAT, AS A PREREQUISITE TO THE CORRECTION OF AN ERRONEOUS BID, THERE MUST BE NO DOUBT AS TO THE AMOUNT OF THE INTENDED PRICE. IN THIS REGARD, THE CORPORATION REFERS TO THE FACT THAT IT HAD QUOTED A UNIT PRICE OF $24.30 FOR THE IDENTICAL TYPE SLATE UNDER INVITATION NO. 60-66, DATED MAY 20, 1960. IN VIEW OF FLUCTUATIONS IN FREIGHT COSTS AND OF THE TIME INTERVENING SINCE INVITATION NO. 60-66 WAS ISSUED, WE DO NOT BELIEVE THAT SUCH AN UNSUPPORTED STATEMENT ESTABLISHES, WITH THAT DEGREE OF CERTAINTY REQUIRED, THAT HAD THE ERRORS NOT OCCURRED THE TOTAL BID PRICE WOULD HAVE BEEN EXACTLY $2,440. THE BID THEREFORE MAY NOT BE CORRECTED.

HOWEVER, SINCE THERE CAN BE LITTLE, IF ANY, DOUBT THAT ERRORS WERE, IN FACT, MADE IN THE BID OF ANTHONY DALLY AND SONS, INC., AS ALLEGED, THE BID MAY BE DISREGARDED.