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B-177287, DEC 15, 1972

B-177287 Dec 15, 1972
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CONTRACT - MISTAKE IN BID - PRICE REFORMATION DECISION DENYING THE REQUEST OF FAWCETT PRINTING CORPORATION FOR AN INCREASE IN THE CONTRACT PRICE BECAUSE OF AN ALLEGED MISTAKE IN BID ON WHICH A CONTRACT ISSUED BY THE GOVERNMENT PRINTING OFFICE FOR THE PRODUCTION OF AIR FORCE PAMPHLETS IS BASED. THERE IS NO BASIS TO INCREASE THE CONTRACT PRICE WHERE THE CONTRACTING OFFICER HAD NO REASON TO SUSPECT ERROR. BECAUSE THE BID WAS IN LINE WITH OTHER BIDS RECEIVED AND WITH THE PRICE PREVIOUSLY PAID FOR THE IDENTICAL ITEMS. HUMPHREY: REFERENCE IS MADE TO AN UNDATED LETTER FROM THE GENERAL COUNSEL WHICH WAS RECEIVED BY OUR OFFICE ON OCTOBER 18. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY THE FAWCETT PRINTING CORPORATION TO HAVE BEEN MADE IN ITS BID UPON WHICH PURCHASE ORDER NO. 67533 IS BASED.

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B-177287, DEC 15, 1972

CONTRACT - MISTAKE IN BID - PRICE REFORMATION DECISION DENYING THE REQUEST OF FAWCETT PRINTING CORPORATION FOR AN INCREASE IN THE CONTRACT PRICE BECAUSE OF AN ALLEGED MISTAKE IN BID ON WHICH A CONTRACT ISSUED BY THE GOVERNMENT PRINTING OFFICE FOR THE PRODUCTION OF AIR FORCE PAMPHLETS IS BASED. THERE IS NO BASIS TO INCREASE THE CONTRACT PRICE WHERE THE CONTRACTING OFFICER HAD NO REASON TO SUSPECT ERROR, BECAUSE THE BID WAS IN LINE WITH OTHER BIDS RECEIVED AND WITH THE PRICE PREVIOUSLY PAID FOR THE IDENTICAL ITEMS.

TO MR. HARRY J. HUMPHREY:

REFERENCE IS MADE TO AN UNDATED LETTER FROM THE GENERAL COUNSEL WHICH WAS RECEIVED BY OUR OFFICE ON OCTOBER 18, 1972, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY THE FAWCETT PRINTING CORPORATION TO HAVE BEEN MADE IN ITS BID UPON WHICH PURCHASE ORDER NO. 67533 IS BASED.

THE GOVERNMENT PRINTING OFFICE (GPO) REQUESTED BIDS UNDER JACKET NO. 463- 531 FOR THE PRODUCTION OF 1,000,000 AIR FORCE BOOKLETS. THE FAWCETT PRINTING CORPORATION SUBMITTED A BID DATED MAY 10, 1972, OFFERING TO FURNISH THE BOOKLETS AT A PRICE OF $55,773. THE NINE OTHER BIDS ON THE JOB RANGED FROM $58,863 TO $85,000. THE BID OF FAWCETT WAS ACCEPTED ON MAY 16, 1972.

BY LETTER DATED SEPTEMBER 15, 1972, FAWCETT ADVISED THAT IT HAD MADE AN ERROR IN ITS BID IN THAT IT HAD FAILED TO INCLUDE THE COST OF THE COVER STOCK IN ITS BID PRICE FOR THE BOOKLETS. THE CORPORATION STATED THAT IT HAD SUFFERED A LOSS OF $9,787.42 IN PERFORMING THE CONTRACT AND IT REQUESTED THAT IT BE GRANTED RELIEF FROM SUCH LOSS. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED ITS ESTIMATE SHEET AND CERTAIN INVOICES. HOWEVER, WE FIND NO BASIS TO INCREASE THE CONTRACT PRICE AS REQUESTED SINCE THE CONTRACTING OFFICER MADE AWARD WITHOUT NOTICE OF POSSIBLE ERROR. THE CONTRACTING OFFICER HAD NO REASON TO SUSPECT ERROR SINCE FAWCETT'S BID WAS IN LINE WITH THE OTHER BIDS RECEIVED AND WITH THE PRICE PREVIOUSLY PAID FOR A SMALLER QUANTITY OF IDENTICAL BOOKLETS.

ACCORDINGLY, FAWCETT'S REQUEST FOR AN INCREASE IN ITS CONTRACT PRICE MUST BE DENIED.

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