B-132368, JUL. 12, 1957

B-132368, JUL. 12, 1957

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED JUNE 26, 1957, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY (LOGISTICS), REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH SHIMBASHI SEISHI KABUSHIKI KAISHA ALLEGES WAS MADE IN ITS BID ON WHICH CONTRACT NO. DA 92-557-FEC- 24712 WAS AWARDED.

BY REQUEST FOR PROPOSAL NO. 92-557-57-7846-N, HEADQUARTERS, JAPAN PROCUREMENT AGENCY, YOKOHAMA, JAPAN, REQUESTED BIDS FOR FURNISHING 28,710 ROLLS OF "PAPER, TOILET, TISSUES, UNGLAZED SOFT 4 1/2 IN. WIDE, PERFORATED AT 5 INCH INTERVALS, TYPE 1, PER F.S. UU-P-556C (DATED 10 OCT 1950) 100 ROLLS PER BOX.' IN RESPONSE SHIMBASHI SEISHI KABUSHIKI KAISHA SUBMITTED A BID DATED SEPTEMBER 25, 1956, OFFERING TO FURNISH THE TOILET TISSUE AT A PRICE OF $0.0541 PER ROLL. THE BID OF THE COMPANY WAS ACCEPTED ON OCTOBER 17, 1956.

BY LETTER DATED NOVEMBER 2, 1956, THE COMPANY ADVISED THE CONTRACTING OFFICER THAT ITS BID PRICE OF $0.0541 PER ROLL WAS ERRONEOUS IN THAT IT WAS BASED ON FURNISHING A ROLL OF 500 SHEETS RATHER THAN 1,000 SHEETS AS REQUIRED BY FEDERAL SPECIFICATION UU-P-556C AND REQUESTED THAT IT BE PERMITTED TO FURNISH THE TOILET TISSUE IN ROLLS OF 500 SHEETS AT ITS BID PRICE. THE COMPANY POINTED OUT TO THE CONTRACTING OFFICER THE FOLLOWING FACTS, NAMELY, (1) THAT IN THE PAST THE USUAL PURCHASE OF TOILET TISSUE WAS MADE ON THE BASIS OF FEDERAL SPECIFICATION NO. UU-P-556C WITH A MODIFICATION OF "500 SHEETS PER ROLL; " (2) THAT THE SUBJECT INVITATION CALLED FOR THE PACKING OF 100 ROLLS TO THE BOX AND THAT SUCH METHOD OF PACKING WAS THE CUSTOMARY PACKING FOR A ROLL CONSISTING OF 500 SHEETS RATHER THAN 1,000 SHEETS; AND (3) THAT SIMULTANEOUSLY WITH THE ISSUANCE OF THE SUBJECT INVITATION, ANOTHER INVITATION WAS ISSUED FOR FURNISHING THE SAME TYPE OF TOILET TISSUE IN ROLLS OF 500 SHEETS AND THAT IT WAS ALSO THE SUCCESSFUL BIDDER UNDER THAT INVITATION.

BY LETTER DATED NOVEMBER 13, 1956, THE COMPANY ADVISED THE CONTRACTING OFFICER THAT IT WAS WITHHOLDING SHIPMENT OF THE TOILET TISSUE PENDING A DECISION ON ITS CLAIM FOR RELIEF UNDER THE CONTRACT. IN A LETTER DATED NOVEMBER 21, 1956, THE COMPANY STATED THAT IN VIEW OF THE CIRCUMSTANCES IN THE PRESENT CASE, IT WOULD SHIP THE TOILET TISSUE IN THE NEAR FUTURE. LETTER DATED DECEMBER 12, 1956, THE COMPANY ADVISED THAT ON DECEMBER 10, 1956, IT HAD SHIPPED THE REQUIRED TOILET TISSUE IN ROLLS OF 1,000 SHEETS AND REQUESTED THAT THE CONTRACT PRICE OF THE TOILET TISSUE BE INCREASED FROM $0.0541 TO $0.0941 PER ROLL. AT THE REQUEST OF THE CONTRACTING OFFICER, THE COMPANY SUBMITTED A COST ANALYSIS BREAKDOWN OF ITS REQUESTED PRICE OF $0.0941 PER ROLL.

THE RECORD INDICATES THAT THE COMPANY'S BID FOR FURNISHING TOILET TISSUE IN 500 SHEET ROLLS WAS SUBMITTED IN RESPONSE TO INVITATION NO. 92-557-57- 7847-N AND THAT THE BIDS SUBMITTED IN RESPONSE TO THAT INVITATION WERE OPENED AT 1:30 P.M. ON THE SAME DATE AS THE BIDS SUBMITTED IN THE PRESENT CASE, WHICH WERE OPENED AT 2:00 P.M. AND WHICH CALLED FOR 1,000 SHEET ROLLS OF TOILET TISSUES; AND THAT THE SAME BIDDERS QUOTING ON 500 SHEET ROLLS ALSO QUOTED ON 1,000 SHEET ROLLS UNDER THE SUBJECT INVITATION. THE ABSTRACT OF THE BIDS SUBMITTED IN RESPONSE TO THE SUBJECT INVITATION SHOWS THAT THE THREE OTHER BIDS, THE LOWEST OF WHICH WAS SUBMITTED BY A BIDDER LACING THE NECESSARY TECHNICAL ABILITY, SPECIFIED PRICES OF $0.0457, $0.0556 AND $0.064 PER 1,000 SHEET ROLL. THE ABSTRACT OF THE BIDS SUBMITTED IN RESPONSE TO INVITATION NO. 92-557-57-7847-N, WHICH CALLS FOR FURNISHING OF THE IDENTICAL TYPE OF TOILET TISSUE IN 500 SHEET ROLLS, SHOWS THAT SHIMBASHI SEISHI KABUSHIKI KAISHA QUOTED A PRICE OF $0.0567 PER ROLL-- $0.0026 MORE THAN THE PRICE QUOTED BY THE COMPANY FOR A 1,000 SHEET ROLL UNDER THE SUBJECT INVITATION. THE ABSTRACTS ALSO SHOW THAT OF THE THREE OTHER BIDDERS WHO SUBMITTED BIDS IN RESPONSE TO BOTH INVITATIONS, ONE BIDDER QUOTED AN IDENTICAL PRICE FOR THE 500 SHEET ROLL AND THE 1,000 SHEET ROLL AND THAT EACH OF THE TWO OTHER BIDDERS QUOTED ALMOST IDENTICAL PRICES FOR BOTH SIZES OF TOILET TISSUES. IT IS OBVIOUS FROM THE ABSTRACTS THAT THE BIDS SUBMITTED IN RESPONSE TO BOTH INVITATIONS WERE BASED ON FURNISHING THE 500 SHEET ROLL RATHER THAN THE 1,000 SHEET ROLL OF TOILET TISSUE.

IN VIEW OF THE FACT THAT UNDER BOTH INVITATIONS, EACH OF THE BIDDERS QUOTED ALMOST IDENTICAL PRICES FOR THE 500 SHEET ROLL AND THE 1,000 SHEET ROLL, TOGETHER WITH THE ADDITIONAL FACT THAT THE BIDS UNDER THE SUBJECT INVITATION WERE OPENED ONE-HALF HOUR BEFORE THE OPENING OF THE BIDS UNDER THE OTHER INVITATION, THE PROBABILITY OF ERROR WAS APPARENT AND, UNDER THE CIRCUMSTANCES, THE BID OF SHIMBASHI SEISHI KABUSHIKI KAISHA SHOULD NOT HAVE BEEN ACCEPTED WITHOUT REQUESTING ALL OF THE BIDDERS TO VERIFY THEIR BIDS.

ACCORDINGLY, ON ADDITIONAL PAYMENT OF $1,148.40 IS AUTHORIZED TO BE MADE TO SHIMBASHI SEISHI KABUSHIKI KAISHA FOR THE QUANTITY OF TOILET TISSUE DELIVERED BY THE COMPANY UNDER CONTRACT NO. DA 92-557-FEC-24712, AS RECOMMENDED BY THE CONTRACTING OFFICER.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING THE ADDITIONAL PAYMENT ON THE TOILET TISSUE.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT DATED JANUARY 21, 1957, ARE RETURNED.