B-146413, AUG. 1, 1961

B-146413: Aug 1, 1961

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GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF JULY 12. TO HAVE BEEN MADE IN ITS BID ON WHICH UNNUMBERED CONTRACT (PURCHASE ORDER NO. IS BASED. WAS AWARDED ITEMS 1. THE CORPORATION STATED THAT THE REASON FOR THE ERROR WAS THAT IT HAD MISINTERPRETED THE MANUFACTURER'S QUOTATION AS $3.70 PER FIVE GALLON CAN INSTEAD OF AS $3.70 PER GALLON. THE CORPORATION SUBMITTED THE QUOTATION RECEIVED FROM ITS SUPPLIER AND A COPY OF ITS SUPPLIER'S INVOICE ON WHICH THE CORPORATION WAS BILLED A PRICE OF $3.70 PER GALLON FOR THE CATTLE DIP. SHOWS THAT THE REGULAR SELLING PRICE OF LINTOX-X (CATTLE DIP) IS $4.88 PER GALLON. WHERE ONLY ONE BID IS RECEIVED ON AN ITEM. - THERE IS NO BASIS FOR COMPARISON OF BIDS.

B-146413, AUG. 1, 1961

TO ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF JULY 12, 1961, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY THE H. C. BURNS COMPANY, INC., TO HAVE BEEN MADE IN ITS BID ON WHICH UNNUMBERED CONTRACT (PURCHASE ORDER NO. SFIGY-IC-7792-1) DATED JANUARY 24, 1961, IS BASED.

THE FEDERAL SUPPLY SERVICE, SAN FRANCISCO, CALIFORNIA, BY REQUEST FOR QUOTATIONS NO. QSFY-7792-61, REQUESTED BIDS FOR FURNISHING VARIOUS LIVESTOCK SUPPLY ITEMS. ITEM 4 COVERED THE FURNISHING OF 60 FIVE GALLON DRUMS OF CATTLE DIP. IN RESPONSE THE H. C. BURNS COMPANY, INC., SUBMITTED A BID OFFERING TO FURNISH THE CATTLE DIP AT A PRICE OF $4.41 PER DRUM OR FOR A TOTAL PRICE OF $264.60. ON JANUARY 24, 1961, THE H. C. BURNS COMPANY, INC., WAS AWARDED ITEMS 1, 2 AND 4.

AFTER DELIVERY OF THE CATTLE DIP COVERED BY ITEM 4, THE CORPORATION ADVISED BY LETTER DATED FEBRUARY 9, 1961, THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT IT HAD ERRONEOUSLY QUOTED THE UNIT PRICE FOR ONE GALLON RATHER THAN THE UNIT PRICE FOR A FIVE-GALLON CAN. THE CORPORATION REQUESTED THAT THE UNIT PRICE ON THE PURCHASE ORDER FOR ITEM 4 BE CHANGED TO READ $22.05. IN A LETTER DATED FEBRUARY 27, 1961, THE CORPORATION STATED THAT THE REASON FOR THE ERROR WAS THAT IT HAD MISINTERPRETED THE MANUFACTURER'S QUOTATION AS $3.70 PER FIVE GALLON CAN INSTEAD OF AS $3.70 PER GALLON. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED THE QUOTATION RECEIVED FROM ITS SUPPLIER AND A COPY OF ITS SUPPLIER'S INVOICE ON WHICH THE CORPORATION WAS BILLED A PRICE OF $3.70 PER GALLON FOR THE CATTLE DIP. THE CORPORATION ALSO SUBMITTED THE MANUFACTURER'S PRICE LIST WHICH, IT STATED, SHOWS THAT THE REGULAR SELLING PRICE OF LINTOX-X (CATTLE DIP) IS $4.88 PER GALLON.

ORDINARILY, WHERE ONLY ONE BID IS RECEIVED ON AN ITEM--- AS IN THE PRESENT CASE--- THERE IS NO BASIS FOR COMPARISON OF BIDS; HENCE, THERE IS NOTHING TO PLACE THE CONTRACTING OFFICER ON NOTICE OF THE PROBABILITY OF ERROR IN THE BID. SEE 17 COMP. GEN. 560; 26 ID. 415. IT IS NOTED, HOWEVER, THAT THE CATTLE DIP COST THE CORPORATION THE TOTAL SUM OF $1,100, WHEREAS THE CORPORATION'S TOTAL BID PRICE FOR THAT ITEM IS$264.60. THE RECORD LEAVES LITTLE DOUBT THAT THE CORPORATION'S BID WAS ERRONEOUS AND TO COMPEL THE CORPORATION TO FURNISH THE CATTLE DIP FOR A TOTAL PRICE OF $264.60 WOULD APPEAR TO BE UNCONSCIONABLE.

ACCORDINGLY, SINCE THE CATTLE DIP HAS BEEN DELIVERED, AN ADDITIONAL PAYMENT OF $1,058.40 IS AUTHORIZED TO BE MADE TO THE CORPORATION, AS RECOMMENDED BY THE REGIONAL COUNSEL, REGION 9, GENERAL SERVICES ADMINISTRATION.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING SUCH PAYMENT.

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