B-126750, JAN. 26, 1956

B-126750, JAN. 26, 1956

TO HONORABLE EDMUND F. MANSURE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO LETTER DATED JANUARY 23, 1956, WITH ENCLOSURES, FROM THE ASSISTANT ADMINISTRATOR, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR GUIDE SYSTEM AND SUPPLY COMPANY, INC., ALLEGES IT MADE IT ITS BID ON WHICH CONTRACT NO. GS-00S 5199 WAS AWARDED.

THE FEDERAL SUPPLY SERVICE, REGION II, NEW YORK, NEW YORK, BY INVITATION NO. NY-1W-65170 REQUESTED BIDS--- TO BE OPENED NOVEMBER 29, 1955--- FOR FURNISHING AMONG OTHER ITEMS, VARIOUS QUANTITIES OF 5 BY 8 INCHES PLAIN INDEX CARDS (STOCK ITEM NO. 53-C-9106-750) DELIVERED TO VARIOUS DESTINATIONS THROUGHOUT THE UNITED STATES, ITEMS 11, 118, 126, 128, 139, AND 145. IN RESPONSE, GUIDE SYSTEM AND SUPPLY COMPANY, INC., SUBMITTED A BID DATED NOVEMBER 25, 1955, OFFERING TO DELIVER 5 BY 8 INCHES PLAIN INDEX CARDS TO THE DESTINATION SET FORTH OPPOSITE ITEM 11 -- NEWARK, NEW JERSEY- -- AT A PRICE OF $0.115 PER HUNDRED AND TO DELIVER IDENTICAL CARDS TO THE DESTINATIONS SET FORTH OPPOSITE ITEMS 118, 126, 128, 139, AND 145 AT PRICES RANGING FROM $0.302 PER HUNDRED AT FRANCONIA, VIRGINIA TO $0.347 PER HUNDRED AT SAN FRANCISCO, CALIFORNIA. THE TWO OTHER BIDDERS ON ITEMS 11, 118, 126, 128, 139, AND 145 QUOTED PRICES RANGING FROM $0.2542 TO $0.31 PER HUNDRED. THE BID OF THE CORPORATION WAS ACCEPTED AS TO ITEM 11 AND OTHER ITEMS ON DECEMBER 9, 1955.

BY LETTER DATED DECEMBER 14, 1955, GUIDE SYSTEM AND SUPPLY COMPANY, INC., ADVISED THAT ITS BID PRICE OF $0.115 PER HUNDRED FOR ITEM 11 (STOCK ITEM NO. 53-C-9106-750) WAS ERRONEOUS IN THAT IT WAS BASED ON FURNISHING 3 BY 5 INCHES PLAIN INDEX CARDS (STOCK ITEM NO. 53-C-9106 730) AND NOT 5 BY 8 INCHES PLAIN INDEX CARDS AS REQUIRED UNDER THAT ITEM, AND POINTED OUT THAT THE FACT THAT IT HAD QUOTED PRICES RANGING FROM $0.302 TO $0.347 PER HUNDRED FOR THE SAME CARDS UNDER OTHER ITEMS MADE IT OBVIOUS THAT ITS PRICE FOR ITEM 11 WAS ERRONEOUS. THE CORPORATION ALSO POINTED OUT THAT IT QUOTED PRICES RANGING FROM $0.117 TO $0.132 PER HUNDRED FOR 3 BY 5 INCHES PLAIN INDEX CARDS UNDER ITEMS 116, 122, 124, 134, 138, AND 143. THEREFORE, THE CORPORATION REQUESTED THAT IT BE RELIEVED FROM FURNISHING THE CARDS REQUIRED UNDER ITEM 11 AT ITS BID PRICE.

SINCE THE PRICES QUOTED FOR DELIVERY OF THE CARDS TO EASTERN POINTS, OTHER THAN NEWARK, VARIES ONLY A FEW CENTS FROM THE PRICE QUOTED FOR DELIVERY OF IDENTICAL CARDS TO THE WEST COAST, IT SEEMS OBVIOUS THAT THE CORPORATION DID NOT INTEND TO OFFER THE INDEX CARDS COVERED BY ITEM 11 AT LESS THAN HALF THE PRICE QUOTED FOR THE IDENTICAL CARDS COVERED BY THE OTHER ITEMS. THE RECORD INDICATES THAT IN ALL PREVIOUS PROCUREMENTS OF 5 BY 8 INCHES PLAIN INDEX CARDS (STOCK ITEM NO. 53-C-9106-750), THE PRICE PAID FOR THAT ITEM HAS NEVER BEEN LESS THAN $0.248 PER HUNDRED, AND THE BIDDER HAS FURNISHED A COST BREAKDOWN SHOWING AN ACTUAL COST OF $0.205 PER HUNDRED FOR THE MATERIAL ALONE. IN THE CIRCUMSTANCES, IT APPEARS THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN AWARE OF THE PROBABILITY OF ERROR IN THE CORPORATION'S BID OF $0.115 PER HUNDRED FOR ITEM 11 AND CONSEQUENTLY THE BID SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING THE CORPORATION TO VERIFY ITS BID.

ON THE RECORD, THERE IS NO DOUBT THAT GUIDE SYSTEM AND SUPPLY COMPANY, INC., MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, AND SINCE THE RECORD INDICATES THAT NO DELIVERIES HAVE BEEN MADE OF ITEM 11, THAT ITEM OF CONTRACT NO. GS-00S-5199 SHOULD BE CANCELED WITHOUT LIABILITY TO THE CORPORATION.

THE PAPERS, WITH THE EXCEPTION OF THE FINDINGS OF THE ACTING CHIEF, SECTION 2, NEW YORK BRANCH, NBD, FEDERAL SUPPLY SERVICE, ARE RETURNED.