B-141274, NOV. 27, 1959

B-141274, NOV. 27, 1959

TO MR. W. D. MONTS, CONTRACT SPECIALIST, MARKETING DIVISION DRUGS AND CHEMICALS, VETERANS ADMINISTRATION SUPPLY DEPOT:

REFERENCE IS MADE TO YOUR LETTER (7023/134L1), DATED NOVEMBER 16, 1959, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHAT ACTION SHOULD BE TAKEN ON THE RESPECTIVE BIDS OF BIO RAMO DRUG ., INC., BALTIMORE, MARYLAND, AND FARNK SAMUEL AND COMPANY, INC., NEW YORK, NEW YORK, SUBMITTED IN RESPONSE TO INVITATION NO. M5-32-60 ISSUED OCTOBER 14, 1959, FOR FURNISHING, AS REQUIRED, CERTAIN PHARMACEUTICALS DESCRIBED UNDER ITEMS NOS. 3 AND 4, AS FOLLOWS:

"STOCK NO. 161710F - PENICILLIN G., POTASSIUM, USP, CRYSTALLINE, 500,000 UNITS PER VIAL, 100S: POTENCY 36 MONTHS.'

THEIR BIDS ON ITEMS NOS. 3 AND 4 WERE, AS FOLLOWS:

TABLE

BIO RAMO DRUG CO., INC. FRANK SAMUEL AND CO., INC.

ITEM 3 $0.069 ITEM 3 $2.36

ITEM 4 0.069 ITEM 4 2.38

AND THE NEXT LOW BID WAS $7.10 FOR EACH OF THESE ITEMS.

YOU STATE THAT WHEN BIDS WERE OPENED AT THE SCHEDULED TIME ON NOVEMBER 5, 1959, IT WAS NOTED THAT THESE TWO BIDDERS APPARENTLY HAD MADE AN ERROR IN THEIR BIDS ON ITEMS NOS. 3 AND 4, AND THAT THEY WERE REQUESTED BY TWX DATED NOVEMBER 6 TO PROMPTLY VERIFY THEIR PRICES.

IN REPLY, BIO RAMO DRUG CO., INC., VERIFIED THEIR PRICES BY WIRE ON NOVEMBER 6. ON THE SAME DAY THEY NOTIFIED YOUR OFFICE BY TELEPHONE, AND CONFIRMED SAME BY LETTER, THAT THE COMPANY HAD ACTUALLY MADE A MISTAKE IN PRICE, ALLEGING THAT THEIR PRICE FOR EACH ITEM SHOULD HAVE BEEN $6.90 PER BOX OF 100 VIALS AND EXPLAINING THAT THE PRICE THEY BID WAS THE SINGLE VIAL PRICE. THE COMPANY, THEREFORE, REQUESTED A CHANGE IN THEIR UNIT BID PRICE TO $6.90 PER BOX.

IN RESPONSE TO YOUR REQUEST FOR BID VERIFICATION, FRANK SAMUEL AND COMPANY, INC., VERIFIED THEIR BID ON NOVEMBER 6, AND ON THE SAME DAY THEY CONTACTED YOUR OFFICE AND ADVISED THAT THEIR BID WAS ACTUALLY IN ERROR AS TO ITEMS NOS. 3 AND 4, EXPLAINING THAT THEIR BID WAS FOR FURNISHING TABLETS INSTEAD OF CRYSTALLINE AS SPECIFIED IN THE INVITATION. BY LETTER DATED NOVEMBER 9 THEY CONFIRMED THEIR ALLEGATION OF ERROR AND REQUESTED THAT THEIR BID BE WITHDRAWN WITHOUT PENALTY.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD THERE APPEARS LITTLE DOUBT, IF ANY, THAT THESE TWO BIDDERS MADE AN ERROR IN THEIR RESPECTIVE BIDS ON ITEMS NOS. 3 AND 4, AS ALLEGED. ACCORDINGLY, AND SINCE YOU HAD REASON TO BELIEVE THAT THE BID OF BIO RAMO DRUG CO., INC., AS TO THOSE ITEMS WAS IN ERROR AND SINCE THE ERROR WAS ALLEGED AND SATISFACTORILY EXPLAINED BY THE BIDDER PRIOR TO AWARD, AND, FURTHER, SINCE THEIR BID IF CORRECTED TO THEIR INTENDED BID PRICE OF $6.90 WOULD CONTINUE TO BE THE LOWEST BID SUBMITTED FOR BOTH ITEMS NOS. 3 AND 4, BIO RAMO DRUG COMPANY'S BID MAY BE CHANGED TO $6.90 FOR EACH OF THESE TWO ITEMS AND AWARD MADE ACCORDINGLY. CONSEQUENTLY, THE ERRONEOUS BID AS TO ITEMS NOS. 3 AND 4 OF FRANK SAMUEL AND COMPANY, INC., MAY BE DISREGARDED.