B-130157, JAN. 10, 1957

B-130157, JAN. 10, 1957

TO HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER, GOVERNMENT PRINTING OFFICE:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 26, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH MOORE BUSINESS FORMS, INC., WASHINGTON, C., ALLEGES IT MADE IN ITS BID ON WHICH UNNUMBERED CONTRACT (PURCHASE ORDER NO. 8117) DATED NOVEMBER 23, 1956, WAS BASED. RECEIPT IS ALSO ACKNOWLEDGED OF YOUR SUPPLEMENTAL LETTER OF JANUARY 4, 1957.

THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS UNDER JACKET NO. 406277 FOR THE PRODUCTION OF 800,000 STRIPS (3-ON) OR 2,400,000 INDIVIDUAL SETS OF A 2-PART SINGLE STUB, SNAPOUT STYLE FORM, CARBON INTERLEAVED IN STRIPS, 3- ON, STRIP SIZE 7 1/2 BY 11 OR 11 1/4 INCHES. THE SPECIFICATIONS PROVIDE THAT BOTH PARTS ARE TO BE PRINTED ON YELLOW SULPHITE LEDGER, SUBSTANCE 72 TO 88 (BASIS 17 BY 22-1,000 SHEETS). IN RESPONSE MOORE BUSINESS FORMS, INC., SUBMITTED A BID DATED NOVEMBER 20, 1956, OFFERING TO FURNISH THE FORMS AT A PRICE OF $3.58 PER THOUSAND SETS OR FOR A TOTAL PRICE OF $8,592.

YOU STATE THAT WHEN THE BIDS WERE EXAMINED BY THE CONTRACTING OFFICER HE NOTED THAT THE BID OF MOORE BUSINESS FORMS, INC., WAS POSSIBLY IN ERROR BECAUSE IT WAS OUT OF LINE WITH THE TWO OTHER BIDS RECEIVED, IN THE AMOUNTS OF $13,824 AND $18,696; AND THAT ON NOVEMBER 23, 1956, THE CORPORATION WAS REQUESTED BY TELEPHONE TO REVIEW THE SPECIFICATIONS AND CONFIRM ITS BID PRICE.

BY LETTER DATED NOVEMBER 23, 1956, THE CORPORATION ADVISED THAT IT HAD REVIEWED ITS COST ESTIMATE ON JACKET NO. 406277 AND FOUND IT TO BE ACCURATE AND THAT THE PRICE QUOTED BY IT FOR THE WORK WAS SATISFACTORY TO THE CORPORATION. THE BID OF THE CORPORATION WAS ACCEPTED ON NOVEMBER 23, 1956, AND ON THE SAME DAY PURCHASE ORDER NO. 8117 WAS ISSUED REQUESTING DELIVERY OF THE FORMS.

BY LETTER DATED NOVEMBER 30, 1956, THE CORPORATION REQUESTED THAT ITS LETTER OF NOVEMBER 23, 1956, CONFIRMING ITS BID PRICE, BE DISREGARDED BECAUSE IT HAD DISCOVERED THAT ITS COST ESTIMATE WAS BASED ON A WRONG PAPER WEIGHT--- 26-POUND SUBSTANCE (500 SHEETS) INSTEAD OF 36-POUND--- DUE TO AN ERROR IN TRANSCRIBING THE SPECIFICATIONS FOR TELETYPE TRANSMITTAL TO ITS PLANTS, AND THE CORPORATION STATED THAT THE CORRECT PRICE FOR THE FORMS, ON 36-POUND STOCK, IS $4.85 PER THOUSAND SETS OR A TOTAL PRICE OF $10,992.

IN A LETTER DATED DECEMBER 11, 1956, THE CORPORATION STATED THAT BECAUSE OF THE ILLNESS OF THE INDIVIDUAL WHO CUSTOMARILY CHECKED THE TELETYPES AGAINST THE JACKETS THE PARTICULAR TELETYPE INVOLVED IN THIS BID HAD NOT BEEN PROPERLY CHECKED.

THE COPIES OF THE TELETYPES SUBMITTED BY THE CORPORATION SHOW THAT THE WEIGHT OF THE PAPER REQUIRED FOR THE FORMS WAS TRANSMITTED IMPROPERLY BY THE WASHINGTON, D.C., OFFICE OF THE CORPORATION TO ITS VARIOUS PLANTS. YOU STATE THAT THE CONTRACTING OFFICER HAS EXAMINED THE EXHIBITS SUBMITTED BY THE CORPORATION AND HAS FOUND THAT THE DIFFERENCE IN POUNDAGE OF PAPER BETWEEN THE 26 AND 36 SUBSTANCE PAPER ENTERED ON THE CORPORATION'S SPECIAL ESTIMATE SHEET IS APPROXIMATELY CORRECT AND THAT THE DIFFERENCE IN LABOR AND FLAT CHARGES ON THESE SHEETS BECAUSE OF THE HEAVIER PAPER STOCK AND NARROWER ROLL SEEMS TO BE REASONABLE. YOU ALSO STATE THAT THIS TYPE OF WORK IS A SPECIALTY ITEM FOR WHICH THE GOVERNMENT PRINTING OFFICE HAS NO SATISFACTORY EQUIPMENT.

IN YOUR LETTER OF JANUARY 4, 1957, IT IS REPORTED THAT THE CONTRACTING OFFICER HAS STATED THAT AT THE TIME OF THE AWARD HE STILL BELIEVED THAT THE BID OF MOORE BUSINESS FORMS, INC., WAS ERRONEOUS, BUT THAT HE FELT THAT THE FACT THAT THE CORPORATION HAD VERIFIED ITS BID LEFT HIM NO ALTERNATIVE BUT TO MAKE THE AWARD.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO ROOM FOR DOUBT THAT THE BID OF THE CORPORATION WAS BASED ON THE WRONG PAPER WEIGHT. IT IS REPORTED THAT THE CORPORATION HAS DELIVERED THE REQUIRED FORMS. IN VIEW OF THE CONTRACTING OFFICER'S BELIEF THAT THE PRICE QUOTED WAS ERRONEOUS, DESPITE THE VERIFICATION, PURCHASE ORDER NO. 8117 MAY BE AMENDED TO PROVIDE FOR A UNIT PRICE OF $4.85 PER THOUSAND SETS, WHICH IS STILL LOWER THAN THE NEXT LOWEST BID RECEIVED ON THE FORMS, AND PAYMENT 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.

A COPY OF PURCHASE ORDER NO. 8117 AND COPIES OF ALL BIDS RECEIVED ARE RETURNED. THE OTHER PAPERS ARE BEING RETAINED.