B-128281, JUN. 21, 1956

B-128281, JUN. 21, 1956

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

REFERENCE IS MADE TO YOUR LETTER OF JUNE 15, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR FRANK'S ORTHOPEDIC SERVICES, MEDICAL RENTAL DIVISION, PHOENIX, ARIZONA, ALLEGES IT MADE IN ITS BID OPENED ON MAY 25, 1956.

THE VETERANS ADMINISTRATION HOSPITAL, PHOENIX, ARIZONA, BY INVITATION NO. 57-13, REQUESTED BIDS FOR FURNISHING OXYGEN THERAPY SERVICE DURING THE PERIOD BEGINNING JULY 1, 1956, AND ENDING JUNE 30, 1957. ITEM 16 COVERED THE RENTAL TO THE GOVERNMENT OF DEMAND AND POSITIVE PRESSURE OXYGEN REGULATORS. IN RESPONSE FRANK'S ORTHOPEDIC SERVICES SUBMITTED A BID DATED MAY 25, 1956, OFFERING, UNDER ITEM 16, TO RENT TO THE GOVERNMENT OXYGEN REGULATORS AT A DAILY RATE OF $1 PER UNIT, SUBITEM (A), AND AT A MONTHLY RATE OF $10, SUBITEM (B).

YOU STATE THAT ON MAY 25, 1956--- THE DAY OF THE BID OPENING--- FRANK'S ORTHOPEDIC SERVICES ADVISED BY TELEPHONE THAT IT HAD MADE AN ERROR IN THE AMOUNT BID FOR ITEM 16B AND REQUESTED THAT IT BE PERMITTED TO CHANGE THE PRICE BID IN ORDER TO CONFORM WITH THE MINIMUM PRICE SET FORTH IN AN AGREEMENT WITH THE MANUFACTURER OF THE REQUIRED EQUIPMENT.

IN A LETTER DATED MAY 25, 1956, THE COMPANY STATED:

"IN CHECKING OUR COPY OF INVITATION NO. 57-13 FOR OXYGEN THERAPY SERVICE, PHOENIX, ARIZONA, FOR THE PERIOD JULY 1, 1956 THRU JUNE 30, 1957 WHICH WAS OPENED AND RECORDED THIS MORNING AT 10:30 IT WAS FOUND THAT AN ERROR BY ONE OF OUR CLERKS IN COPYING THE PENCILED BID HAD RESULTED IN ITEM 16B READING RENTAL, MONTHLY TEN DOLLARS ($10.00) WHEN IT SHOULD HAVE READ THIRTY DOLLARS ($30.00). THIS IS IN KEEPING WITH THE DAILY RENTAL OF ONE DOLLAR ($1.00) PER DAY AS WAS BID UNDER ITEM 16A.

"IT IS REQUESTED THAT OUR BID ON ITEM 16B BE AMENDED TO READ, "B. RENTAL, MONTHLY 1 EA. $30.00"

"OUR CONTRACT WITH V. RAY BENNETT AND ASSOCIATES, INC. 320 SO. ROBERTSON BLVD. LOS ANGELES 48, CALIFORNIA DOES NOT PERMIT US TO CHARGE LESS THAN THIRTY DOLLARS ($30.00) PER MONTH ON THIS ITEM. WE QUOTE IN PART,"4. AGREE TO CHARGE A FAIR PRICE FOR ALL RENTALS ON THE UNIT, AND NOT TO ENGAGE IN UNFAIR PRICES CUTTING TO EFFECT THE SALE OF OXYGEN OR OTHER MERCHANDISE. IN COMPLIANCE WITH THIS, WE AGREE TO CHARGE NOT LESS THAN THIRTY DOLLARS ($30.00) PER MONTH FOR THE RENTAL OF THE UNIT. ETC.'

"IF YOU CANNOT COMPLY WITH THE ABOVE REQUEST, WE, IN ORDER TO MEET OUR EXISTING CONTRACT WITH THE V. RAY BENNETT WILL HAVE TO REVERT TO ITEM 9A OF INVITATION NO. 57-13, SUPPLIES OR SERVICES, ETC.

"WE REGRET THE NECESSITY OF OUR CAUSING ANY INCONVENIENCE ON YOUR PART BY AN ERROR ON OUR PART WHICH WE DID NOT FIND UNTIL TOO LATE TO REACH YOU IN TIME TO PREVENT ITS BEING RECORDED.

"THANKING YOU FOR ANY CONSIDERATIONS THAT YOU MAY BE ABLE TO GIVE US, WE REMAIN"

IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED A SHEET FROM THE INVITATION WHICH, IT STATES, WAS USED AS ITS WORKSHEET.

THE ONLY OTHER BID ON ITEM 16 SPECIFIED A DAILY RATE OF $1.35 PER UNIT AND A MONTHLY RATE OF $40 PER UNIT. THUS, THE MONTHLY RATE OF $10 PER UNIT SPECIFIED BY FRANK'S ORTHOPEDIC SERVICES IS ONLY ONE FOURTH OF THE MONTHLY RATE SPECIFIED BY THE ONLY OTHER BIDDER. ALSO, THE MONTHLY RATE OF $10 IS NOT COMMENSURATE WITH THE DAILY RATE OF $1 QUOTED BY THE COMPANY WHEREAS THE MONTHLY RATE OF $30 WHICH THE COMPANY ALLEGES IT INTENDED TO BID WOULD BE COMMENSURATE WITH SUCH DAILY RATE.

ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED PRIOR TO AWARD AND SINCE THE COMPANY'S INTENDED BID PRICE FOR ITEM 16B APPEARS TO BE SATISFACTORILY ESTABLISHED, THE BID OF THE COMPANY ON THAT ITEM MAY BE CORRECTED TO READ $30 AND AS SO CORRECTED MAY BE CONSIDERED ALONG WITH THE OTHER BIDS IN MAKING THE AWARD.

IN THE EVENT AWARD IS MADE TO FRANK'S ORTHOPEDIC SERVICES, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.