B-148412, AUG. 13, 1962

B-148412: Aug 13, 1962

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THE DISALLOWANCE OF YOUR CLAIM WAS SUSTAINED BY OUR DECISIONS OF APRIL 9. YOUR BID WAS LOW FOR THE ITEM WHILE FOUR OTHER BIDS RECEIVED RANGED IN PRICE FROM ?775 PER POUND TO ?844 PER POUND. AT THE TIME DELIVERY WAS TO COMMENCE YOU NOTIFIED THE VETERANS ADMINISTRATION HOSPITAL THAT YOU HAD UNDERSTOOD THE SPECIFICATIONS TO REQUIRE BUTTER PACKED IN INDIVIDUAL SQUARES. THE ACTUAL REQUIREMENT WAS FOR EACH PAT OF BUTTER TO BE INDIVIDUALLY PACKAGED. YOU SAY THAT YOUR BID PRICE WAS PREDICATED UPON YOUR INTERPRETATION OF THE SPECIFICATION REQUIREMENT. THE CONTRACTING OFFICER REPORTS THAT INVITATION NO. 62-14 WAS THE FIRST ONE IN WHICH THE HOSPITAL REQUESTED SEALED BIDS ON THE PARTICULAR ITEM. THE ITEM WAS FIRST PURCHASED BY THE HOSPITAL ON THE OPEN MARKET ABOUT A MONTH PREVIOUSLY.

B-148412, AUG. 13, 1962

TO DECATUR FARMS:

THIS REFERS TO YOUR LETTER OF MAY 18, 1962, REQUESTING RECONSIDERATION OF OUR CLAIMS DIVISION'S SETTLEMENT OF FEBRUARY 28, 1962, DISALLOWING YOUR CLAIM FOR $107.04, CONSISTING OF AN ADDITIONAL AMOUNT OF $0.10 PER POUND FOR 858 POUNDS OF BUTTER FURNISHED THE VETERANS ADMINISTRATION HOSPITAL, BUFFALO, NEW YORK, PURSUANT TO ITEM 156 OF CONTRACT NO. 62-14 DATED AUGUST 24, 1961, AND FOR $21.24 WITHHELD FROM PAYMENT OF INVOICE NO. 1674, DATED OCTOBER 3, 1961. THE DISALLOWANCE OF YOUR CLAIM WAS SUSTAINED BY OUR DECISIONS OF APRIL 9, 1962 AND MAY 9, 1962 (B-148412).

BRIEFLY STATED, YOU SUBMITTED A BID OF $0.7189 PER POUND ON ITEM NO. 156 OF INVITATION NO. 62-14, DESCRIBED IN THE INVITATION AS "BUTTER, 90 PATS PER LB., 92 SCORE, IN ACCORDANCE WITH VA ITEM 156 EXCEPT PREPATTED (ON INDIVIDUAL BUTTER CHIPS). CARDBOARD SEPARATORS 26 LBS. IN CARTON. REDDIES OR EQUAL.' YOUR BID WAS LOW FOR THE ITEM WHILE FOUR OTHER BIDS RECEIVED RANGED IN PRICE FROM ?775 PER POUND TO ?844 PER POUND. AT THE TIME DELIVERY WAS TO COMMENCE YOU NOTIFIED THE VETERANS ADMINISTRATION HOSPITAL THAT YOU HAD UNDERSTOOD THE SPECIFICATIONS TO REQUIRE BUTTER PACKED IN INDIVIDUAL SQUARES, WITH A CARDBOARD SEPARATOR BETWEEN EACH LAYER. THE ACTUAL REQUIREMENT WAS FOR EACH PAT OF BUTTER TO BE INDIVIDUALLY PACKAGED. YOU SAY THAT YOUR BID PRICE WAS PREDICATED UPON YOUR INTERPRETATION OF THE SPECIFICATION REQUIREMENT.

THE CONTRACTING OFFICER REPORTS THAT INVITATION NO. 62-14 WAS THE FIRST ONE IN WHICH THE HOSPITAL REQUESTED SEALED BIDS ON THE PARTICULAR ITEM. HOWEVER, THE ITEM WAS FIRST PURCHASED BY THE HOSPITAL ON THE OPEN MARKET ABOUT A MONTH PREVIOUSLY, AND THE PRICES BID PER TELEPHONE RANGED FROM ?775 PER POUND TO ?87 PER POUND.

CONSIDERING THE RANGE OF BID PRICES RECEIVED, WE CONCLUDE THAT YOU MAY BE GRANTED RELIEF FROM THE TERMS OF YOUR CONTRACT. HOWEVER, YOU MAY BE ALLOWED ONLY THE DIFFERENCE BETWEEN YOUR BID OF .7189 PER POUND AND THE NEXT LOW BID RECEIVED OF ?775 PER POUND, ON THE QUANTITY DELIVERED. SEE L. L. SHEPARD V. THE UNITED STATES, 95 CT.CL. 407, ALSO 36 COMP. GEN. 585. ACCORDINGLY, PAYMENT OF THE AMOUNT OF $64.18 IS AUTHORIZED ON THE DELIVERY OF 1,144 POUNDS OF BUTTER, PROVIDED YOU WILL ACCEPT THIS AS SETTLEMENT IN FULL. WE HAVE ADVISED OUR CLAIMS DIVISION TO THIS EFFECT AND PAYMENT WILL BE FORTHCOMING IN DUE COURSE.

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