B-145838, MAY 25, 1961

B-145838: May 25, 1961

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

VETERANS ADMINISTRATION SUPPLY DEPOT: REFERENCE IS MADE TO YOUR LETTER OF MAY 9. MAY BE ACCEPTED IN VIEW OF THE ERROR ALLEGED BY THE FIRM TO HAVE BEEN MADE IN THE PREPARATION OF ITS QUOTATION. SINCE ITS GUARANTEED SHIPPING WEIGHT WAS CONSIDERABLY LESS THAN THAT SHOWN BY THE OTHER BIDDERS. YOU WERE ADVISED PROMPTLY BY LETTER OF APRIL 30. THAT PRECISIONEERING WAS BIDDING IN ACCORDANCE WITH THE SPECIFICATIONS. THAT THE GUARANTEED SHIPPING WEIGHT SHOULD HAVE BEEN 290 POUNDS. WITH THE RESULT THAT THE PRICE PER TABLE SHOULD HAVE BEEN $291. WHILE THE ORIGINAL WORK PAPERS WERE NOT FURNISHED. THE BIDDER SET FORTH AN ITEMIZED TABULATION OF ITS COSTS WHICH DEMONSTRATED HOW THE ERROR WAS MADE. THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE MISTAKE WAS MADE AS ALLEGED.

B-145838, MAY 25, 1961

TO S. C. CISSEL, JR., CONTRACTING OFFICER, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER OF MAY 9, 1961, WITH ENCLOSURES, FILE REFERENCE 7018/134J, SUBMITTING FOR OUR CONSIDERATION AND DECISION THE QUESTION WHETHER THE ORIGINAL BID OF PRECISIONEERING, INCORPORATED, SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. M3-36 62, MAY BE ACCEPTED IN VIEW OF THE ERROR ALLEGED BY THE FIRM TO HAVE BEEN MADE IN THE PREPARATION OF ITS QUOTATION.

THE RECORD DISCLOSES THAT UPON EXAMINATION OF THE BIDS RECEIVED IN RESPONSE TO THE SUBJECT INVITATION YOU SUSPECTED THAT SOME MISTAKE HAD BEEN MADE BY THE LOW BIDDER, PRECISIONEERING, INCORPORATED, SINCE ITS GUARANTEED SHIPPING WEIGHT WAS CONSIDERABLY LESS THAN THAT SHOWN BY THE OTHER BIDDERS. IN VIEW THEREOF, AND BASED UPON KNOWLEDGE ACQUIRED THROUGH PREVIOUS PROCUREMENTS, YOU ASKED PRECISIONEERING WHETHER ITS PROPOSAL CONTEMPLATED COMPLIANCE WITH APPLICABLE SPECIFICATIONS IN VIEW OF THE 90- POUND WEIGHT SHOWN. YOU WERE ADVISED PROMPTLY BY LETTER OF APRIL 30, 1961, THAT PRECISIONEERING WAS BIDDING IN ACCORDANCE WITH THE SPECIFICATIONS, BUT THAT THE GUARANTEED SHIPPING WEIGHT SHOULD HAVE BEEN 290 POUNDS; AND, FURTHER, THAT A MISTAKE IN BID HAD BEEN MADE IN THAT THE TOTAL LABOR COST OF $75 PER UNIT HAD BEEN OMITTED IN THE COMPUTATION OF ITS BID PRICE, WITH THE RESULT THAT THE PRICE PER TABLE SHOULD HAVE BEEN $291, F.O.B. PLANT. WHILE THE ORIGINAL WORK PAPERS WERE NOT FURNISHED, THE BIDDER SET FORTH AN ITEMIZED TABULATION OF ITS COSTS WHICH DEMONSTRATED HOW THE ERROR WAS MADE.

THE RELATED FACTS AND CIRCUMSTANCES SUPPORT THE CONCLUSION THAT A BONA FIDE MISTAKE WAS MADE AS ALLEGED, AND SINCE THE ERROR WAS PROMPTLY ASSERTED, WE FEEL ACCEPTANCE OF THE BID AS WRITTEN WOULD NOT CREATE A BINDING CONTRACT. ACCORDINGLY, THE BID OF PRECISIONEERING, INCORPORATED, SHOULD BE DISREGARDED, AND AWARD MAY BE MADE ON THE LOWEST CORRECT PROPOSAL RECEIVED.