B-145682, MAY 9, 1961

B-145682: May 9, 1961

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VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER (7018/1341) DATED APRIL 19. A DECISION IS REQUESTED AS TO WHETHER OR NOT THE BIDDER MAY BE PERMITTED TO WITHDRAW ITS BID. THE ABSTRACT OF BIDS SHOWS THAT FOUR BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION. INC. 2.00 (TOTAL QUANTITY) YOU STATE THAT AFTER BIDS WERE OPENED IT WAS APPARENT THAT THE BID OF KINGS POINT INDUSTRIES. WAS LOW BY 15 CENTS. A REVIEW OF PREVIOUS PURCHASES OVER THE PAST SIX YEARS REVEALED THAT THE LOWEST AWARD PRICE WAS AT $1.91 NET. AT THAT TIME IT WAS POINTED OUT TO THE BIDDER THAT ITS BID OF $1.74 LESS TWO PERCENT DISCOUNT WAS CONSIDERABLY LOW WHEN COMPARED WITH THE OTHER BIDS RECEIVED. GURWIN STATED THAT HIS FIRM'S BID WAS FOR FURNISHING A CANVAS SLIPPER.

B-145682, MAY 9, 1961

TO MR. C. A. KAPPESSER, PROCURING AGENT, MARKETING DIVISION FOR TEXTILES, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER (7018/1341) DATED APRIL 19, 1961, WITH ENCLOSURES, CONCERNING AN ERROR WHICH KINGS POINT INDUSTRIES, INC., NEW YORK, NEW YORK, HAS ALLEGED IT MADE IN ITS BID SUBMITTED PURSUANT TO INVITATION NO. M2-6-62 ISSUED MARCH 13, 1961. A DECISION IS REQUESTED AS TO WHETHER OR NOT THE BIDDER MAY BE PERMITTED TO WITHDRAW ITS BID.

THE INVITATION SOLICITED BIDS FOR FURNISHING "SLIPPERS, CONVALESCENT, PATIENTS" IN ACCORDANCE WITH VETERANS ADMINISTRATION SPECIFICATION NO. X- 241G DATED JULY 28, 1959, WITH DELIVERY DURING THE PERIODS AUGUST 1-20, AND OCTOBER 1-20, 1961, AS INDICATED, AND IN THE QUANTITIES AND AT THE DESTINATIONS SHOWN ON THE INVITATION.

THE ABSTRACT OF BIDS SHOWS THAT FOUR BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION, AS FOLLOWS:

TABLE

BIDDER UNIT PRICE

KINGS POINT INDUSTRIES, INC. $1.74 (ALL OR NONE)

U.S. RUBBER CO. 1.89

B. F. GOODRICH FOOTWEAR AND FLOORING CO. 1.97

RANDOLPH MFG.CO., INC. 2.00 (TOTAL QUANTITY)

YOU STATE THAT AFTER BIDS WERE OPENED IT WAS APPARENT THAT THE BID OF KINGS POINT INDUSTRIES, INC., WHEN COMPARED WITH THE NEXT LOWEST BID, WAS LOW BY 15 CENTS, AND THEREFORE POSSIBLY IN ERROR. A REVIEW OF PREVIOUS PURCHASES OVER THE PAST SIX YEARS REVEALED THAT THE LOWEST AWARD PRICE WAS AT $1.91 NET, F.O.B. DESTINATION. ACCORDINGLY, AND SINCE THE LOW BIDDER HAD NOT PREVIOUSLY FURNISHED THE SLIPPERS REQUIRED BY THE INSTANT INVITATION SPECIFICATION, YOU TELEPHONED MR. J. GURWIN, PRESIDENT OF KINGS POINT INDUSTRIES, INC., AND REQUESTED HIM TO REVIEW HIS FIRM'S BID AND CONFIRM ITS BID PRICE BY LETTER. AT THAT TIME IT WAS POINTED OUT TO THE BIDDER THAT ITS BID OF $1.74 LESS TWO PERCENT DISCOUNT WAS CONSIDERABLY LOW WHEN COMPARED WITH THE OTHER BIDS RECEIVED. DURING THE COURSE OF THE TELEPHONE CONVERSATION, IN DISCUSSING THE SPECIFICATION REQUIREMENTS OF THE INVITATION, MR. GURWIN STATED THAT HIS FIRM'S BID WAS FOR FURNISHING A CANVAS SLIPPER, AND UPON HIS ATTENTION BEING CALLED TO THE FACT THAT THE SPECIFICATION REQUIRED A SLIPPER WITH A RUBBER SOLE AND HEEL, VULCANIZED TO THE UPPER TO FORM A COMPACT UNIT, HE IMMEDIATELY INFORMED YOU THAT AN ERROR HAD BEEN MADE IN HIS FIRM'S BID AS ITS PLANT WAS NOT EQUIPPED TO DO VULCANIZING.

BY LETTER DATED APRIL 14, 1961, MR. GURWIN ADVISED YOU THAT UPON CHECKING THE SPECIFICATION IT WAS FOUND THAT AN ERROR HAD BEEN MADE IN SUBMITTING HIS COMPANY'S BID,"BOTH PRICE WISE AS WELL AS NOT REALIZING THAT THIS SLIPPER IS A VULCANIZED SLIPPER" AND THAT HIS COMPANY IS NOT EQUIPPED TO MANUFACTURE THIS TYPE OF ITEM. UNDER THESE CIRCUMSTANCES, PERMISSION WAS REQUESTED TO WITHDRAW ITS BID.

THE RECORD LEAVES LITTLE DOUBT, IF ANY, THAT THE BIDDER MADE AN ERROR, AS ALLEGED, IN SUBMITTING ITS BID PURSUANT TO INVITATION NO. M2 6-62. ACCORDINGLY, AND SINCE YOU BELIEVED THAT THE BID WAS POSSIBLY ERRONEOUS AND SINCE UPON REQUEST FOR VERIFICATION OF THE BID THE BIDDER CONFIRMED THAT BELIEF AND EXPLAINED HOW THE ERROR OCCURRED, ACCEPTANCE OF THE BID WOULD NOT RESULT IN A VALID AND BINDING CONTRACT. THEREFORE, THE BID OF KINGS POINT INDUSTRIES, INC., MAY BE DISREGARDED IN MAKING AWARD PURSUANT TO INVITATION NO. M2-6-62.