B-160982, MAR. 15, 1967

B-160982: Mar 15, 1967

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HARRISON: REFERENCE IS MADE TO YOUR LETTER DATED FEBRUARY 27. TO HAVE BEEN MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 51222 WAS AWARDED. THE BOOK IS TO BE PRINTED WITH BLACK INK ON YELLOW LEDGER PAPER (EQUAL TO GPO LOT NO. 151) FURNISHED BY THE CONTRACTOR. FOUR BIDS WERE RECEIVED AND OPENED ON FEBRUARY 2. 789 WAS SUBMITTED BY RICH PRINTING COMPANY. THE THREE OTHER BIDS WERE IN THE AMOUNTS OF $31. WAS ACCEPTED ON FEBRUARY 2. THE CORPORATION STATED THAT THE ERROR WAS MADE BY ITS ESTIMATOR IN SELECTING THE SHEET SIZE OF TEXT STOCK TO BE USED IN PRINTING THE BOOKS. THAT ITS ESTIMATOR SHOULD HAVE SELECTED SIZE 24 INCHES BY 38 INCHES INSTEAD OF SIZE 36 INCHES BY 48 INCHES SINCE ITS PRESS WILL NOT TAKE A SHEET OF THE LATTER SIZE.

B-160982, MAR. 15, 1967

TO THE HONORABLE JAMES L. HARRISON:

REFERENCE IS MADE TO YOUR LETTER DATED FEBRUARY 27, 1967, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY RICH PRINTING COMPANY, INC., TO HAVE BEEN MADE IN ITS BID ON WHICH PURCHASE ORDER NO. 51222 WAS AWARDED.

THE GOVERNMENT PRINTING OFFICE (GPO) REQUESTED BIDS UNDER JACKET NO. 234- 844 FOR THE PRINTING AND BINDING OF 30,406 COPIES OF A BOOK CONTAINING 438 PAGES PLUS COVER (TRIM SIZE 9 INCHES BY 5 3/4 INCHES). THE BOOK IS TO BE PRINTED WITH BLACK INK ON YELLOW LEDGER PAPER (EQUAL TO GPO LOT NO. 151) FURNISHED BY THE CONTRACTOR.

FOUR BIDS WERE RECEIVED AND OPENED ON FEBRUARY 2, 1967. THE LOWEST BID IN THE AMOUNT OF $21,789 WAS SUBMITTED BY RICH PRINTING COMPANY, INC., AND THE THREE OTHER BIDS WERE IN THE AMOUNTS OF $31,180, $32,644 AND $33,320. THE BID OF RICH PRINTING COMPANY, INC., WAS ACCEPTED ON FEBRUARY 2, 1967.

YOU STATE THAT ON FEBRUARY 6, 1967, MR. DAVID S. MORSE, PRESIDENT OF RICH PRINTING COMPANY, C., TELEPHONED THE CONTRACTING OFFICER AND ADVISED THAT AN ERROR HAD BEEN MADE IN THE CORPORATION'S BID DUE TO THEIR ALLOWANCE FOR ONLY ONE-HALF OF THE PAPER REQUIRED FOR THE WORK INVOLVED.

IN A CONFIRMING LETTER DATED FEBRUARY 10, 1967, THE CORPORATION STATED THAT THE ERROR WAS MADE BY ITS ESTIMATOR IN SELECTING THE SHEET SIZE OF TEXT STOCK TO BE USED IN PRINTING THE BOOKS; THAT ITS ESTIMATOR SHOULD HAVE SELECTED SIZE 24 INCHES BY 38 INCHES INSTEAD OF SIZE 36 INCHES BY 48 INCHES SINCE ITS PRESS WILL NOT TAKE A SHEET OF THE LATTER SIZE; AND THAT THE ESTIMATE SHEET SHOULD HAVE SHOWN A REQUIREMENT FOR 856 RATHER THAN 428 REAMS OF PAPER. THE CORPORATION REQUESTED THAT THE PURCHASE ORDER BE CANCELED WITHOUT LIABILITY TO IT. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED ITS ORIGINAL ESTIMATE SHEET WHICH SHOWS THAT THE CORPORATION'S BID PRICE WAS BASED ON USING 428 REAMS OF PAPER. THE CORPORATION ALSO SUBMITTED A REVISED ESTIMATE WHICH SHOWS THAT THE CORRECT PRICE FOR THE BOOKS IS $29,133.81.

YOU STATE THAT THE CONTRACTING OFFICER HAS ADVISED THAT WHEN THE BIDS WERE EXAMINED BY HIM HE NOTED THAT THE LOW BID OF RICH PRINTING COMPANY, INC., COMPARED FAVORABLY WITH AN INFORMAL GPO ESTIMATE OF $22,072, AND THAT HE THEREFORE MADE THE AWARD TO THE CORPORATION. YOU ALSO STATE THAT THE CONTRACTING OFFICER HAS STATED THAT AFTER RECEIVING THE CORPORATION'S LETTER HE REEXAMINED THE BIDS RECEIVED AND THE GPO ESTIMATE, WHICH TURNED OUT TO BE IN ERROR, AND CONCLUDED THAT HE SHOULD HAVE MADE A MORE DETAILED COMPARISON OF THE SPECIFICATIONS, ESTIMATE, AND QUOTATIONS AND QUESTIONED THE BID RECEIVED FROM THE CORPORATION BEFORE MAKING AN AWARD.

INASMUCH AS THE RECORD INDICATES THAT HAD A CORRECT GOVERNMENT ESTIMATE BEEN PREPARED FOR THE JOB, THE CONTRACTING OFFICER WOULD HAVE QUESTIONED THE PRICE QUOTED BY RICH PRINTING COMPANY, NC., PURCHASE ORDER NO. 51222 MAY BE CANCELED WITHOUT LIABILITY TO THE CORPORATION.

THE PAPERS, WITH THE EXCEPTION OF THE CORPORATION'S LETTER OF FEBRUARY 10, 1967, AND ITS ESTIMATE SHEETS, ARE RETURNED.