B-149228, AUG. 1, 1962

B-149228, AUG. 1, 1962

TO ADMINISTRATOR, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO A LETTER DATED JUNE 19, 1962, WITH ENCLOSURES, FILE 031C, FROM THE DIRECTOR, SUPPLY MANAGEMENT SERVICE, REQUESTING OUR DECISION AS TO WHETHER THE CONTRACT AWARD TO MORRE CO., INC. (FORMERLY THE PHOTO SHOP) UNDER INVITATION NO. 62-56 MAY BE RESCINDED IN VIEW OF THE CIRCUMSTANCES REPORTED.

IN RESPONSE TO AN INVITATION ISSUED ON APRIL 4, 1962, BY THE SUPPLY DIVISION, NEW VETERANS ADMINISTRATION CENTER, JACKSON, MISSISSIPPI, THE PHOTO SHOP SUBMITTED A BID OF $2,913.60 TO FURNISH ITEM 1 COVERING A MOVIE CAMERA AND CERTAIN EQUIPMENT. FOUR OTHER BIDS WERE RECEIVED FOR THIS ITEM IN THE AMOUNTS OF $2,537.21 (THIS BID WAS NONRESPONSIVE AS IT SPECIFIED ALTERNATE ITEMS), $5,003.50 AND $4,806. IT IS REPORTED THAT AFTER AN AWARD WAS MADE ON MAY 7, 1962, TO THE PHOTO SHOP AS THE LOWEST RESPONSIBLE BIDDER, THE COMPANY BY LETTER 2 OF MAY 20, AND JUNE 6, 1962, ADVISED THAT IT INTENDED TO SUPPLY LENSES AND ACCESSORIES FROM ITS STOCK AND OBTAIN A NEW CAMERA FROM THE MANUFACTURER. IT FURTHER STATED THAT IT COULD NOT SUPPLY THE CAMERA AT THE AMOUNT BID.

IT IS STATED IN THE LETTER OF JUNE 19, 1962, THAT YOU ARE OF THE OPINION THAT THE CONTRACT SHOULD NOT HAVE BEEN MADE AND THAT THE AMOUNT OF THE BID WHICH WAS ACCEPTED WAS SO LOW IN COMPARISON WITH THE TWO OTHER RESPONSIVE BIDS AS TO HAVE CHARGED THE CONTRACTING OFFICER WITH NOTICE OF THE PROBABILITY OF ERROR. IN THIS CONNECTION, IT MAY BE NOTED THAT THE PHOTO SHOP BID ON FURNISHING ARRIFLEX EQUIPMENT UNDER ITEM 1. THE ARRIFLEX CORPORATION SUBMITTED A BID OF $5,003.50 ON THE SAME EQUIPMENT.

ON THE RECORD, THERE IS NO ROOM FOR DOUBT THAT THE COMPANY MADE OFFICER INDICATES THAT NO WORK HAS BEEN PERFORMED UNDER THE PURCHASE ORDER. ACCORDINGLY, PURCHASE ORDER NO. 2901 MAY BE CANCELLED WITHOUT LIABILITY TO THE COMPANY.