B-134328, NOV. 21, 1957

B-134328, NOV. 21, 1957

TO MR. GLENN C. PARMELEE, DIRECTOR, SUPPLY SERVICE, DEPARTMENT OF MEDICINE AND SURGERY (OPERATIONS):

REFERENCE IS MADE TO YOUR LETTER (13403-26), DATED NOVEMBER 4, 1957, WITH ENCLOSURES, IN WHICH YOU REQUEST A DECISION AS TO WHETHER, IN VIEWOF ERRORS ALLEGED TO HAVE BEEN MADE IN ITS BID, WILMOT CASTLE COMPANY, ROCHESTER, NEW YORK, MAY BE PERMITTED TO WITHDRAW ITS ENTIRE BID SUBMITTED ON OCTOBER 10, 1957, PURSUANT TO INVITATION NO. A-76 58.

THE PROCUREMENT DIVISION, SUPPLY SERVICE, HOSPITAL SUPPLIES SECTION, OF THE VETERANS ADMINISTRATION, BY INVITATION NO. A-76-58, DATED OCTOBER 7, 1957, SOLICITED BIDS FOR FURNISHING STERILIZERS AS DESCRIBED IN ITEMS NOS. 1 TO 4, INCLUSIVE, FOR DELIVERY F.O.B. THE VETERANS ADMINISTRATION SUPPLY DEPOTS AT HINES, ILLINOIS, AND WILMINGTON, CALIFORNIA. THE ABSTRACT OF BIDS SHOWS THAT SIX BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION, AS FOLLOWS:

* * * * * * * * * * * * * * (TABLE OMITTED) * * * * * * * * * * * * * *

YOU STATE THAT AFTER THE OPENING OF THE BIDS ON OCTOBER 18, 1957, AND BEFORE AN AWARD WAS MADE, A REPRESENTATIVE OF WILMOT CASTLE COMPANY ON THE SAME DATE CONTACTED YOUR OFFICE IN PERSON AND ADVISED THAT HIS FIRM HAD MADE AN ERROR IN THE PRICES QUOTED ON ITEMS NOS. 2, 3, AND 4. IN LETTER DATED OCTOBER 25, 1957, THE COMPANY CONFIRMED THIS ALLEGATION OF ERROR AND REQUESTED THAT ITS ENTIRE BID BE WITHDRAWN. THE COMPANY EXPLAINED THAT UPON RECHECKING ITS BID IT WAS FOUND THAT THE PERSON MAKING OUT THE BID, THROUGH ERROR, BID ON ALL ITEMS THE PRICE FOR A STERILIZER--- CASTLE NO. C -416--- WHICH APPLIED ONLY TO ITEM NO. 1, AND STATED THAT THIS IS SUBSTANTIATED BY THE FACT THAT THAT MODEL NUMBER IS THE ONLY ONE CITED ON PAGE 6 OF THE INVITATION.

THE COMPANY'S BID SHOWS THAT $63 WAS BID BY WILMOT CASTLE COMPANY ON ITEMS NOS. 1, 2, AND 4, AS ALLEGED, BUT THAT ITS BID PRICE ON ITEM NO. 3 IS $63.84; ALSO, THAT "CASTLE C-416" IS THE ONLY MODEL NUMBER CITED IN ITS BID ON THE INVITATION. A COMPARISON OF THE BID PRICES IN THE ABSTRACT OF BIDS SHOWS THAT WILMOT CASTLE COMPANY'S PRICES ON ITEMS NOS. 2, 3, AND 4 ARE FAR OUT OF LINE WITH THOSE OF OTHER BIDDERS ON THESE ITEMS.

ON THE RECORD, THEREFORE, THERE IS NO DOUBT THAT THE COMPANY MADE ERRORS IN ITS BID PRICES ON ITEMS NOS. 2, 3, AND 4, AS ALLEGED. ACCORDINGLY, AND SINCE THE ERRORS WERE ALLEGED AND EXPLAINED BY THE BIDDER PRIOR TO AWARD AND SINCE ITS BID ON ITEM NO. 1 IS NOT THE LOWEST RECEIVED ON THAT ITEM, WILMOT CASTLE COMPANY MAY BE PERMITTED TO WITHDRAW ITS BID IN ITS ENTIRETY. IN THE EVENT AN AWARD IS MADE TO ANOTHER BIDDER UNDER INVITATION NO. A-76-58, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT OR VOUCHERS COVERING PAYMENT IN THE MATTER.