B-149506, AUG. 8, 1962

B-149506: Aug 8, 1962

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TO GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF JULY 19. ITEM 106 OF THE INVITATION IS DESCRIBED AS FOLLOWS: "AUSTIN MOORE HIP PROSTHESIS 6 EACH OF THE FOLLOWING HEAD DIAMETER. WAS AWARDED CONTRACT NO. UPON RECEIPT OF THE AWARD THE CONTRACTOR ALLEGED THAT THESE ITEMS NORMALLY ARE SOLD AS UNITS RATHER THAN SETS. THAT THE $76.50 PRICE WAS INTENDED TO APPLY TO A SINGLE UNIT. SHOULD HAVE BEEN $2. OFFICIAL PRICE LISTS HAVE BEEN SUBMITTED WHICH SHOW THE PRICE OF THESE ITEMS TO BE $76.50 EACH. THE NEXT LOWEST RESPONSIVE BID WAS IN THE AMOUNT OF $2. 203.20 AND THE CONTRACTING OFFICER HAS ACKNOWLEDGED THAT THE WIDE DISPARITY IN BID PRICES CONSTITUTED CONSTRUCTIVE NOTICE OF PROBABLE ERROR AND THAT HE SHOULD HAVE VERIFIED THE LOW BID PRIOR TO AWARD.

B-149506, AUG. 8, 1962

TO GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF JULY 19, 1962, WITH ENCLOSURES, SUBMITTING THE REQUEST OF THE AMERICAN HOSPITAL SUPPLY CORPORATION FOR RELIEF FROM A MISTAKE IN BID UNDER INVITATION NO. SFR-IC-7402-A-62, ISSUED DECEMBER 26, 1961.

ITEM 106 OF THE INVITATION IS DESCRIBED AS FOLLOWS: "AUSTIN MOORE HIP PROSTHESIS 6 EACH OF THE FOLLOWING HEAD DIAMETER. SIZES 1 1/2, 1 5/8, 1 3/4, 1 7/8, 2 1/8 NO. 30411 1 SET.' AMERICAN HOSPITAL SUPPLY CORPORATION QUOTED A UNIT PRICE OF $76.50, AND A TOTAL PRICE OF $76.50, AND WAS AWARDED CONTRACT NO. GS-09S-9815 ON FEBRUARY 9, 1962,AS THE LOW RESPONSIVE BIDDER. UPON RECEIPT OF THE AWARD THE CONTRACTOR ALLEGED THAT THESE ITEMS NORMALLY ARE SOLD AS UNITS RATHER THAN SETS, THAT THE $76.50 PRICE WAS INTENDED TO APPLY TO A SINGLE UNIT, AND THAT THE PRICE FOR 36 UNITS, REPRESENTING 6 EACH OF 6 DIFFERENT SIZES, SHOULD HAVE BEEN $2,754. SUPPORT OF THIS ALLEGATION, OFFICIAL PRICE LISTS HAVE BEEN SUBMITTED WHICH SHOW THE PRICE OF THESE ITEMS TO BE $76.50 EACH.

THE NEXT LOWEST RESPONSIVE BID WAS IN THE AMOUNT OF $2,203.20 AND THE CONTRACTING OFFICER HAS ACKNOWLEDGED THAT THE WIDE DISPARITY IN BID PRICES CONSTITUTED CONSTRUCTIVE NOTICE OF PROBABLE ERROR AND THAT HE SHOULD HAVE VERIFIED THE LOW BID PRIOR TO AWARD. IN VIEW THEREOF AND SINCE THE EXISTENCE OF THE MISTAKE AND THE AMOUNT OF THE INTENDED BID HAVE BEEN SATISFACTORILY ESTABLISHED, PAYMENT MAY BE MADE FOR ITEM 106 UP TO THE AMOUNT OF THE NEXT LOWEST RESPONSIVE BID, AS ADMINISTRATIVELY RECOMMENDED.