B-133822, NOV. 14, 1957

B-133822, NOV. 14, 1957

TO HONORABLE FRANKLIN G. FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 29, 1957, WITH ENCLOSURES, FROM THE COMMISSIONER, FEDERAL SUPPLY SERVICE, FURNISHING THE REPORT REQUESTED BY OUR OFFICE RELATIVE TO AN ERROR THE SHAW WALKER COMPANY, WASHINGTON, D.C., ALLEGES IT MADE IN ITS BID ON WHICH CONTRACT NO. GS-OOS- 15336 WAS AWARDED.

THE FEDERAL SUPPLY SERVICE, NATIONAL BUYING DIVISION, WASHINGTON, D.C., BY INVITATION DATED FEBRUARY 1, 1957, AS AMENDED ON FEBRUARY 21, 1957, REQUESTED BIDS FOR FURNISHING NUMEROUS ITEMS OF OFFICE EQUIPMENT, CLASS 54, PART III, SECTION B, AS REQUIRED BY VARIOUS GOVERNMENT AGENCIES DURING THE PERIOD BEGINNING JULY 1, 1957, AND ENDING JUNE 30, 1958. IN RESPONSE THE SHAW-WALKER COMPANY SUBMITTED A BID SUPPORTED BY A PRICE LIST OFFERING TO DELIVER WALKER-SHAW STOCK NO. 4078 FILE DRAWER INTERIORS TO ZONES 1, 2, AND 3 UNDER ITEM 54-F 2325 AT PRICES OF $52.25, $61.65, AND $58.80 EACH, RESPECTIVELY. THE BID OF THE SHAW-WALKER COMPANY WAS ACCEPTED AS TO ITEM 54-F-2325 AND OTHER ITEMS ON MAY 21, 1957.

BY LETTER DATED SEPTEMBER 5, 1957, THE SHAW-WALKER COMPANY ADVISED THAT AN ERROR HAD BEEN MADE ON THE PRICE LIST SUBMITTED WITH ITS BID IN THAT THE UNIT PRICES FOR ZONES 2 AND 3 HAD BEEN INADVERTENTLY INTERCHANGED UNDER ITEM 54-F-2325; THAT THE UNIT PRICE FOR ZONE 2 SHOULD HAVE BEEN SHOWN AS BEING $58.80 AND NOT $61.65; AND NOT THE UNIT PRICE FOR ZONE 3 SHOULD HAVE BEEN SHOWN AS BEING $61.65 AND NOT $58.80. THE COMPANY REQUESTED THAT THE UNIT PRICES FOR ZONES 2 AND 3 BE CORRECTED ACCORDINGLY AND IT STATED THAT IT HAD ALREADY MADE THE CORRECTIONS IN THE NEW CATALOG AND PRICE LIST WHICH WAS TO BE DISTRIBUTED TO THE VARIOUS GOVERNMENT AGENCIES. BY LETTER DATED SEPTEMBER 13, 1957, THE NATIONAL BUYING DIVISION, FEDERAL SUPPLY SERVICE, ADVISED THE COMPANY THAT IT HAD CORRECTED THE COMPANY'S BID PRICE UNDER ITEM 54-F-2325 FOR ZONE 2 BY REDUCING THE UNIT PRICE TO $58.80, BUT THAT IT WAS WITHOUT AUTHORITY TO INCREASE THE UNIT PRICE FOR ZONE 3 TO $61.65 AND THAT ITS CLAIM FOR RELIEF SHOULD BE ADDRESSED TO THE COMPTROLLER GENERAL OF THE UNITED STATES FOR CONSIDERATION.

BY LETTER DATED SEPTEMBER 17, 1957, ADDRESSED TO OUR OFFICE, THE SHAW- WALKER COMPANY REQUESTED THAT THE UNIT PRICE FOR ZONE 3 UNDER ITEM 54-F- 2325 BE CORRECTED TO READ $61.65. THE COMPANY STATED THAT SINCE IT WAS SUCH AN OBVIOUS ERROR IN TRANSPOSITION OF FIGURES, AND THE AMOUNT WAS SO SMALL, IT HAD PROCEEDED TO HAVE ITS CATALOG AND PRICE LIST PRINTED UP AND THAT THESE HAVE NOW BEEN DISTRIBUTED THROUGH THE ENTIRE GOVERNMENT SERVICE.

SINCE THE STATES COVERED BY ZONE 3 ARE MORE DISTANT FROM THE POINT OF SHIPMENT, MUSKEGON, MICHIGAN, THAN THE STATES COVERED BY ZONE 2, IT SEEMS OBVIOUS THAT THE COMPANY DID NOT INTEND TO QUOTE A LOWER PRICE UNDER ITEM 54-F-2325 FOR DELIVERIES TO ZONE 3 THAN FOR DELIVERIES TO ZONE 2 AND THIS INTENT IS BORNE OUT BY THE FACT THAT ON ALL OTHER ITEMS THE COMPANY QUOTED A HIGHER PRICE FOR DELIVERIES TO ZONE 3 THAN FOR DELIVERIES TO ZONE 2. THE CIRCUMSTANCES, IT APPEARS THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN AWARE OF THE PROBABILITY OF ERROR IN THE COMPANY'S BID OF $58.80 EACH FOR ZONE 3 UNDER ITEM 54-F-2325, AND CONSEQUENTLY THE BID SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE COMPANY TO VERIFY ITS BID.

ON THE RECORD, THERE IS NO DOUBT THAT THE SHAW-WALKER COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, CONTRACT NO. GS-OOS 15336 MAY BE AMENDED TO PROVIDE FOR A UNIT PRICE OF $61.65 FOR DELIVERIES OF FILE DRAWER INTERIORS TO ZONE 3 UNDER ITEM 54-F-2325 THEREOF, AND PAYMENT FOR FILE DRAWER INTERIORS DELIVERED TO SUCH ZONE IS AUTHORIZED TO BE MADE ON THAT BASIS.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE AMENDMENT TO BE ATTACHED TO THE CONTRACT.