B-143704, AUG. 17, 1960

B-143704, AUG. 17, 1960

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

REFERENCE IS MADE TO YOUR LETTER ( 7023/134L1 ( DATED AUGUST 4, 1960, WITH ENCLOSURES, IN WHICH YOU REQUEST A DECISION CONCERNING AN ERROR WHICH CHEMICAL COMPOUNDING CORPORATION, BROOKLYN, NEW YORK, ALLEGES IT MADE IN ITS BID ON ITEMS NOS. 17, 18, AND 19 OF BID INVITATION NO. M5-5 61 ISSUED JULY 8, 1960.

BY THE CITED INVITATION BIDS WERE SOLICITED--- OPENING DATE JULY 26, 1960 --- FOR FURNISHING 19 ITEMS OF PHARMACEUTICAL CHEMICALS LISTED AND DESCRIBED THEREIN, FOR DELIVERY F.O.B. DESTINATION POINT AS INDICATED. YOU STATE THAT AFTER BIDS WERE OPENED, BUT PRIOR TO AWARDS, CHEMICAL COMPOUNDING CORPORATION, THE LOW BIDDER, ADVISED YOU BY TELEGRAM DATED JULY 27 THAT IN PREPARING ITS BID IN RESPONSE TO THE INVITATION IT HAD MADE AN ERROR IN THE CALCULATION OF $0.71, $0.98, AND $0.77 AS ITS QUOTATIONS ON ITEMS NOS. 17, 18, AND 19. THE CORPORATION THEREFORE REQUESTED THAT THESE ITEMS BE DELETED FROM ITS BID. IN A LETTER DATED AUGUST 1, 1960, THE CORPORATION CONFIRMED ITS ALLEGATION OF ERROR, EXPLAINED HOW THE ERROR OCCURRED, AND STATED THAT ITS INTENDED BID PRICES FOR THE THREE ITEMS SHOULD HAVE BEEN $0.44 PER BOTTLE HIGHER THAN THOSE SHOWN ON ITS BID. A PHOTOSTATIC COPY OF THE CORPORATION'S ORIGINAL WORKSHEET WAS SUBMITTED IN SUBSTANTIATION OF ITS CLAIM OF ERROR. ALSO, THE ABSTRACT OF BIDS SHOWS THAT THE NEXT LOW RESPECTIVE BIDS ON THESE ITEMS ARE $1.17, $1.328, AND $1.115. YOU STATE THAT THE PREVIOUS PRICES FOR THE THREE ITEMS FROM ANOTHER VENDOR WERE $0.94, $1.45, AND $1.10, RESPECTIVELY.

THE RECORD LEAVES LITTLE, IF ANY, DOUBT THAT CHEMICAL COMPOUNDING CORPORATION MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, AND SINCE THE ERROR WAS ALLEGED AND EXPLAINED BY THE CORPORATION PRIOR TO AWARD, ITS BID ON ITEMS NOS. 17, 18, AND 19 MAY BE DISREGARDED IN MAKING AWARDS UNDER INVITATION NO. M5-5-61.