B-124123, JUN. 15, 1955
Highlights
SOIL CONSERVATION SERVICE: REFERENCE IS MADE TO YOUR LETTER OF MAY 26. 30 CALENDAR DAYS" WAS NOTED AND THAT. THE COMPANY ADVISED THAT THE INCLUSION OF THE DISCOUNT OFFER WAS A TYPOGRAPHICAL ERROR. THAT WHAT THE COMPANY INTENDED TO INSERT WAS"NET 30 DAYS. CORRECTION OF THE BID TO SO PROVIDE WAS REQUESTED. IS IN LINE WITH THE OTHER BIDS RECEIVED. IT IS SHOWN THEREIN THAT. YOU STATE THAT YOU CONSIDERED THE DISCOUNT OFFER TO BE UNUSUAL SINCE NO PROMPT PAYMENT DISCOUNT WAS OFFERED IN PREVIOUS BIDS BY THE COMPANY. IT IS UNLIKELY THAT A BIDDER. - INTENTIONALLY WOULD OFFER A DISCOUNT OF 30 PERCENT FOR PAYMENT WITHIN 30 DAYS WHEN NO DISCOUNT IS OFFERED FOR PAYMENT WITHIN 10 OR 20 DAYS. THERE APPEARS NO DOUBT THAT A BONA FIDE ERROR WAS MADE IN THE BID OF THE COMPANY AND THAT THE DISCOUNT OFFER WAS NOT INTENDED.
B-124123, JUN. 15, 1955
TO MR. R. F. HUBER, CONTRACTING OFFICER, SOIL CONSERVATION SERVICE:
REFERENCE IS MADE TO YOUR LETTER OF MAY 26, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO THE DISCOUNT OFFERED BY THE FREDERICK POST COMPANY IN ITS UNDATED BID SUBMITTED IN RESPONSE TO INVITATION NO. SCS-74-MS-55 DATED MAY 2, 1955, IN VIEW OF THE BIDDER'S ALLEGATION OF ERROR.
THE RECORD SHOWS THAT UPON OPENING THE BIDS THE PROBABILITY OF ERROR IN THE COMPANY'S OFFER OF A PROMPT PAYMENT DISCOUNT OF "30 PERCENT, 30 CALENDAR DAYS" WAS NOTED AND THAT, THEREFORE, YOU REQUESTED THE COMPANY TO CONFIRM THE DISCOUNT OFFER. BY LETTER DATED MAY 20, 1955, THE COMPANY ADVISED THAT THE INCLUSION OF THE DISCOUNT OFFER WAS A TYPOGRAPHICAL ERROR; THAT WHAT THE COMPANY INTENDED TO INSERT WAS"NET 30 DAYS; " AND, THEREFORE, CORRECTION OF THE BID TO SO PROVIDE WAS REQUESTED.
THE ABSTRACT OF BIDS SHOWS THAT THE COMPANY'S BID, WITHOUT CONSIDERING THE PROMPT PAYMENT DISCOUNT OFFER, IS IN LINE WITH THE OTHER BIDS RECEIVED. ALSO, IT IS SHOWN THEREIN THAT, OF THE 12 OTHER BIDDERS, ONLY TWO OFFERED A PROMPT PAYMENT DISCOUNT, THE HIGHEST BEING TWO PERCENT FOR PAYMENT IN 10 DAYS. YOU STATE THAT YOU CONSIDERED THE DISCOUNT OFFER TO BE UNUSUAL SINCE NO PROMPT PAYMENT DISCOUNT WAS OFFERED IN PREVIOUS BIDS BY THE COMPANY. MOREOVER, IT IS UNLIKELY THAT A BIDDER--- AS IN THE PRESENT CASE--- INTENTIONALLY WOULD OFFER A DISCOUNT OF 30 PERCENT FOR PAYMENT WITHIN 30 DAYS WHEN NO DISCOUNT IS OFFERED FOR PAYMENT WITHIN 10 OR 20 DAYS. HENCE, THERE APPEARS NO DOUBT THAT A BONA FIDE ERROR WAS MADE IN THE BID OF THE COMPANY AND THAT THE DISCOUNT OFFER WAS NOT INTENDED.
ACCORDINGLY, SINCE YOU BELIEVED THE PROMPT PAYMENT DISCOUNT OFFER WAS NOT INTENDED AND SINCE SUCH BELIEF WAS CONFIRMED AND ITS ERROR WAS EXPLAINED BY THE COMPANY PRIOR TO AWARD, THE PROMPT PAYMENT DISCOUNT OFFER OF "30 PERCENT, 30 CALENDAR DAYS" IN THE BID OF FREDERICK POST COMPANY SHOULD BE DISREGARDED.
IN THE EVENT OF AN AWARD TO FREDERICK POST COMPANY, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.