B-157746, OCT. 11, 1965

B-157746: Oct 11, 1965

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 24. WESTWOOD PHARMACEUTICALS IS A SOLE-SOURCE SUPPLIER OF THIS ITEM. A PRICE OF $0.85 PER BOTTLE WAS QUOTED INSTEAD OF THE CORRECT PRICE OF $1.12 PER BOTTLE. THE $0.85 FIGURE IS THE PRICE FOR A 4-OUNCE BOTTLE OF ANTISEBORRHEIC LIQUID. WHICH IS ALSO SUPPLIED TO THE VA BY WESTWOOD ON A SOLE-SOURCE BASIS. A PRICE OF $1.13 PER 8-OUNCE BOTTLE WAS QUOTED AND ACCEPTED BY THE VA ON TWO PRIOR PROCUREMENTS OF ANTIPRURITIC LIQUID IN SEPTEMBER 1964 AND MARCH 1965. THERE WERE TWO PROCUREMENTS OF ANTISEBORRHEIC LIQUID AT $0.87 AND $0.85 PER 4-OUNCE BOTTLE DURING THE SAME TIME PERIOD. WE FEEL THAT WESTWOOD PHARMACEUTICALS HAS SHOWN THAT A BONA FIDE MISTAKE WAS MADE.

B-157746, OCT. 11, 1965

TO THE HONORABLE WILLIAM J. DRIVER, ADMINISTRATOR, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 24, 1965, FROM MR. CLYDE C. COOK, DIRECTOR, SUPPLY MANAGEMENT SERVICE, YOUR FILE REFERENCE 074B, WITH REGARD TO A MISTAKE IN PROPOSAL NO. 7023-M5-39-66 ALLEGED AFTER AWARD BY WESTWOOD PHARMACEUTICALS, BUFFALO, NEW YORK, ON CONTRACT V7023P-5371A FOR DELIVERY OF 10,800 8-OUNCE BOTTLES OF ANTIPRURITIC LIQUID TO THE VETERANS ADMINISTRATION (VA) SUPPLY DEPOTS, SOMERVILLE, NEW JERSEY, AND HINES, ILLINOIS. WESTWOOD PHARMACEUTICALS IS A SOLE-SOURCE SUPPLIER OF THIS ITEM.

THE CONTRACTOR ALLEGES THAT, THROUGH A CLERICAL ERROR, A PRICE OF $0.85 PER BOTTLE WAS QUOTED INSTEAD OF THE CORRECT PRICE OF $1.12 PER BOTTLE. THE $0.85 FIGURE IS THE PRICE FOR A 4-OUNCE BOTTLE OF ANTISEBORRHEIC LIQUID, WHICH IS ALSO SUPPLIED TO THE VA BY WESTWOOD ON A SOLE-SOURCE BASIS. A PRICE OF $1.13 PER 8-OUNCE BOTTLE WAS QUOTED AND ACCEPTED BY THE VA ON TWO PRIOR PROCUREMENTS OF ANTIPRURITIC LIQUID IN SEPTEMBER 1964 AND MARCH 1965. ALSO, THERE WERE TWO PROCUREMENTS OF ANTISEBORRHEIC LIQUID AT $0.87 AND $0.85 PER 4-OUNCE BOTTLE DURING THE SAME TIME PERIOD. THE CONTRACTING OFFICER NOTED THE VARIATION BETWEEN PAST ORDERS FOR ANTIPRURITIC LIQUID AND THE PRESENT ONE, BUT DID NOT REQUEST VERIFICATION.

WE FEEL THAT WESTWOOD PHARMACEUTICALS HAS SHOWN THAT A BONA FIDE MISTAKE WAS MADE. ALSO, IN OUR VIEW, THE PRICE DISCREPANCY, NOTED BY THE CONTRACTING OFFICER, WAS NOTICE OF THE POSSIBILITY OF A MISTAKE AND VERIFICATION SHOULD HAVE BEEN REQUESTED.

FOR THE ABOVE REASONS, WE AGREE WITH THE DIRECTOR, SUPPLY MANAGEMENT SERVICE, THAT THE CONTRACT SHOULD BE REQUIRED TO REFLECT THE CORRECT PRICE OF $1.12 PER BOTTLE OF 8-OUNCE ANTIPRURITIC LIQUID.