B-128062, JUN. 5, 1956

B-128062, JUN. 5, 1956

TO HONORABLE H. V. HIGLEY, ADMINISTRATOR, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF MAY 28, 1956, WITH ENCLOSURES, RELATIVE TO AN ALLEGED ERROR IN AN UNDATED BID SUBMITTED BY BERNARD-S, SYRACUSE, NEW YORK, IN RESPONSE TO INVITATION NO. M-49 DATED MARCH 21, 1956. YOU REQUEST A DECISION AS TO WHETHER THE BID MAY BE WITHDRAWN IN VIEW OF THE ERROR ALLEGED PRIOR TO AWARD.

THE INVITATION INVITED BIDS ON ITEM NO. 1, COVERING THIRTEEN 4-SEAT GANG CHAIRS; ITEM NO. 2, COVERING THREE 5-SEAT GANG CHAIRS; AND ITEM NO. 3 COVERING FIFTY-SIX 2-SEAT GANG CHAIRS. IN ITS BID, BERNARD'S QUOTED A UNIT PRICE OF $21.44 ON EACH OF THE THREE ITEMS. BELIEVING THAT THE BID WAS ERRONEOUS, THE CONTRACTING OFFICER TELEGRAPHED A REQUEST FOR A VERIFICATION OF THE PRICES. BY LETTER DATED MAY 3, 1956, BERNARD'S ADVISED THAT THE UNIT PRICE QUOTED WAS INTENDED TO BE PER SEAT NOT PER CHAIR, AND THAT, THEREFORE, THE BID PRICE ON THE 4 SEAT CHAIRS UNDER ITEM NO. 1 SHOULD BE $85.76 EACH (4 TIMES $21.44), OR A TOTAL OF $1,114.88 FOR THE 13 CHAIRS; THE BID ON THE 5-SEAT CHAIRS UNDER ITEM NO. 2 SHOULD BE $107.20 EACH (5 TIMES $21.44), OR $321.60 FOR THE THREE CHAIRS; AND THE BID ON THE 2-SEAT CHAIRS, ITEM NO. 3, SHOULD BE $42.88 (2 TIMES $21.44) EACH, FOR THE 56 CHAIRS, OR $2,401.28 FOR THE ITEM. THE ABSTRACT OF BIDS SHOWS THAT THE SEVEN OTHER BIDS RANGED FOR $55.80 TO $82 EACH ON ITEM NO. 1; FROM $71.75 TO $103 EACH ON ITEM NO. 2 AND FROM $29.90 TO $42 EACH ON ITEM NO. 3.

ON THE BASIS OF THE REPORTED FACTS AND THE EVIDENCE OF RECORD THERE IS NO DOUBT THAT BERNARD'S MADE A BONA FIDE ERROR IN ITS BID AS ALLEGED. ACCORDINGLY, SINCE IT WAS BELIEVED THE BID WAS ERRONEOUS, AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED SATISFACTORILY BY THE BIDDER PRIOR TO AWARD, THE BID SUBMITTED BY BERNARD'S MAY BE DISREGARDED IN MAKING THE AWARD.

THE PAPERS TRANSMITTED WITH YOUR LETTER OF MAY 28, 1956, ARE RETURNED, AS REQUESTED.