B-180256, APR 2, 1974

B-180256: Apr 2, 1974

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GOVERNMENT COST ESTIMATE WAS $11. ONLY OTHER BID SUBMITTED WAS $16. SINCE LOW BID WAS ONLY $391 MORE THAN GOVERNMENT ESTIMATE BASED ON CURRENT SIMILAR PROGRAM WORK. CONTRACTING OFFICER WAS NOT ON CONSTRUCTIVE NOTICE OF POSSIBILITY OF ERROR AND ACCEPTANCE OF BID RESULTED IN VALID AND BINDING CONTRACT AND UPWARD ADJUSTMENT OF CONTRACT PRICE WOULD NOT BE PROPER. THE ONLY OTHER BID WAS IN THE AMOUNT OF $16. 617 AND THE GPO ESTIMATE WAS $11. PURCHASE ORDER NO. 54517 WAS ISSUED TO MCCALL. THE TOTAL IMPRESSION COUNT USED TO CALCULATE THE PRESS-RUNNING TIME WAS ONLY ONE-HALF OF WHAT IT SHOULD HAVE BEEN. THE COMPANY STATED THAT ITS WORKSHEET SHOULD HAVE SHOWN THE NUMBER OF IMPRESSIONS AS 222. 176 IMPRESSIONS IS $2.

B-180256, APR 2, 1974

UNDER INVITATION FOR PRINTING OF BOOKLETS, CONTRACTOR SUBMITTED LOW BID OF $12,036, GOVERNMENT COST ESTIMATE WAS $11,645, AND ONLY OTHER BID SUBMITTED WAS $16,617. SINCE LOW BID WAS ONLY $391 MORE THAN GOVERNMENT ESTIMATE BASED ON CURRENT SIMILAR PROGRAM WORK, CONTRACTING OFFICER WAS NOT ON CONSTRUCTIVE NOTICE OF POSSIBILITY OF ERROR AND ACCEPTANCE OF BID RESULTED IN VALID AND BINDING CONTRACT AND UPWARD ADJUSTMENT OF CONTRACT PRICE WOULD NOT BE PROPER.

TO MCCALL PRINTING COMPANY:

THE GOVERNMENT PRINTING OFFICE (GPO) REQUESTED BIDS UNDER JACKET NO. 524- 453 FOR THE PRODUCTION OF 25,420 ARMY CORPS OF ENGINEERS BOOKLETS. THE MCCALL PRINTING COMPANY SUBMITTED A BID OFFERING TO FURNISH THE BOOKLETS AT A PRICE OF $12,036. THE ONLY OTHER BID WAS IN THE AMOUNT OF $16,617 AND THE GPO ESTIMATE WAS $11,645. ON NOVEMBER 6, 1973, PURCHASE ORDER NO. 54517 WAS ISSUED TO MCCALL. SHORTLY THEREAFTER, MCCALL CONTACTED GPO AND ALLEGED THAT IT HAD MADE AN ERROR OF $2,001 IN COMPUTING ITS BID PRICE FOR THE PAMPHLETS.

IN A LETTER DATED DECEMBER 4, 1973, MCCALL STATES THAT IN COMPUTING ITS BID PRICE FOR THE JOB ITS ESTIMATOR FAILED TO TAKE INTO CONSIDERATION THAT EACH SHEET OF PAPER HAD TO BE PRINTED ON BOTH SIDES AND THAT AS A RESULT THEREOF, THE TOTAL IMPRESSION COUNT USED TO CALCULATE THE PRESS-RUNNING TIME WAS ONLY ONE-HALF OF WHAT IT SHOULD HAVE BEEN. THE COMPANY STATED THAT ITS WORKSHEET SHOULD HAVE SHOWN THE NUMBER OF IMPRESSIONS AS 222,352 RATHER THAN 111,176 AND THE VALUE OF THE ADDITIONAL 111,176 IMPRESSIONS IS $2,001. CONSEQUENTLY, MCCALL REQUESTED THAT THE CONTRACT PRICE OF THE BOOKLETS BE INCREASED BY $2,001. IN SUPPORT OF ITS ALLEGATION, THE COMPANY SUBMITTED ITS ESTIMATE SHEETS.

WE FIND NO BASIS TO INCREASE THE CONTRACT PRICE AS REQUESTED SINCE THE CONTRACTING OFFICER MADE AWARD WITHOUT NOTICE OF POSSIBLE ERROR. WHILE THERE WAS A CONSIDERABLE DIFFERENCE BETWEEN MCCALL'S BID AND THE ONLY OTHER BID, THE CONTRACTING OFFICER HAD NO REASON TO SUSPECT ERROR SINCE THE COMPANY'S BID WAS ONLY $391 MORE THAN THE AMOUNT OF GPO'S ESTIMATE WHICH WAS BASED UPON AN ACTIVE PROGRAM FOR SIMILAR TYPE WORK, USING THE PRICES IN EFFECT THEREIN.

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