B-135006, FEB. 3, 1958
Highlights
WELFARE: I HAVE YOUR LETTER OF JANUARY 8. TO HAVE BEEN MADE IN ITS BID OPENED DECEMBER 3. THE ABSTRACT OF BIDS SHOWS TWO OTHER BIDS WERE RECEIVED WHICH QUOTED PRICES OF $6 AND $7.19 EACH. HAD OBVIOUSLY MADE AN ERROR IN BIDDING ON ITEM ONE SINCE NO EXCEPTION WAS TAKEN TO THE ADVERTISED SPECIFICATIONS. THAT THE COMPANY WAS CONTACTED AND REQUESTED TO VERIFY ITS BID AND TO FURNISH YOUR OFFICE WITH AN EXPLANATION LEADING TO THE RESULTANT ERROR. THAT THE STUDS AND TRACK ARE ALWAYS PRICED BY THE FOOT AND IN FIGURING THIS JOB A CLERK FAILED TO CONVERT THE PRICE TO LENGTHS OF 12 FEET. THERE APPEARS LITTLE DOUBT THAT A BONA FIDE ERROR WAS MADE BY THE BIDDER. SINCE THE CONTRACTING OFFICER BELIEVED THAT THE BID OF THE COMPANY WAS ERRONEOUS AND HIS BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED BY THE BIDDER PRIOR TO AWARD.
B-135006, FEB. 3, 1958
TO MR. DONALD R. WATSON, CHIEF, PROCUREMENT SECTION, DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE:
I HAVE YOUR LETTER OF JANUARY 8, 1958, WITH ENCLOSURES, REQUESTING A DECISION RELATIVE TO AN ERROR ALLEGED BY THE FACTORY AND YARD SUPPLY CO., 321 BROADWAY, NEW YORK, NEW YORK, TO HAVE BEEN MADE IN ITS BID OPENED DECEMBER 3, 1957.
IN RESPONSE TO INVITATION TO BID NO. 267-12-3-57 DATED NOVEMBER 18, 1957, THE FACTORY AND YARD SUPPLY CO., SUBMITTED ITS BID DATED NOVEMBER 30, 1957, OFFERING TO FURNISH 30 STUDS, DOUBLE, 3 5/8 IN. DEPTH, SOLID WEB, 16 GAUGE, IN 12-FOOT LENGTHS, FOR THE PRICE OF ?60 EACH. THE ABSTRACT OF BIDS SHOWS TWO OTHER BIDS WERE RECEIVED WHICH QUOTED PRICES OF $6 AND $7.19 EACH.
YOU STATE THAT A REVIEW OF THE BIDS SUBMITTED INDICATED THAT FACTORY AND YARD SUPPLY CO., HAD OBVIOUSLY MADE AN ERROR IN BIDDING ON ITEM ONE SINCE NO EXCEPTION WAS TAKEN TO THE ADVERTISED SPECIFICATIONS; AND THAT THE COMPANY WAS CONTACTED AND REQUESTED TO VERIFY ITS BID AND TO FURNISH YOUR OFFICE WITH AN EXPLANATION LEADING TO THE RESULTANT ERROR.
IN RESPONSE TO THE REQUEST BY LETTER DATED DECEMBER 16, 1957, FOR VERIFICATION OF ITS BID, THE COMPANY ADVISED THAT IT INADVERTENTLY PRICED THE ITEM BY FOOT INSTEAD OF BY THE 12-FOOT LENGTHS AS SPECIFIED; THAT THE STUDS AND TRACK ARE ALWAYS PRICED BY THE FOOT AND IN FIGURING THIS JOB A CLERK FAILED TO CONVERT THE PRICE TO LENGTHS OF 12 FEET; AND THAT WHEN IT SUBMITTED A BID TO YOU ON ANOTHER INVITATION FOR BIDS TO BE OPENED ON DECEMBER 17, 1957, IT QUOTED A PRICE TO YOU FOR THE SAME MATERIAL ON THE BASIS OF ?60 PER FOOT.
ON THE BASIS OF THE RECORD, THERE APPEARS LITTLE DOUBT THAT A BONA FIDE ERROR WAS MADE BY THE BIDDER. ACCORDINGLY, SINCE THE CONTRACTING OFFICER BELIEVED THAT THE BID OF THE COMPANY WAS ERRONEOUS AND HIS BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED BY THE BIDDER PRIOR TO AWARD, THE BID SHOULD BE DISREGARDED.
THE PAPERS, WITH THE EXCEPTION OF THE COMPANY'S LETTER DATED DECEMBER 16, 1957, AND YOUR LETTER, ARE RETURNED HEREWITH.