B-161147, APR. 4, 1967

B-161147, APR. 4, 1967

TO THE PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER DATED MARCH 23, 1967, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING A BID SUBMITTED BY WARREN HARRIS LABELS, INC., IN THE CIRCUMSTANCES RELATED.

ON MARCH 8, 1967, THE GOVERNMENT PRINTING OFFICE (GPO) MAILED INVITATIONS TO 20 SUPPLIERS TO BID ON SPECIFICATIONS COVERING THE MANUFACTURE OF VARIOUS QUANTITIES OF FIVE DIFFERENT PRESSURE-SENSITIVE LABELS ON JACKETS 248-622 THROUGH 248-626 PURSUANT TO NAVY REQUISITIONS X4269 THROUGH X4273. ON MARCH 14, 1967, THREE BIDS WERE OPENED IN TOTAL AMOUNTS AS FOLLOWS:

CHART

KIMBALL SYSTEMS, INC. $1,285.25

WARREN HARRIS LABELS, INC. 1,674.89

AVERY LABEL CORPORATION 1,734.00

YOU REPORT THAT IN THE CASES OF KIMBALL AND AVERY, THE TOTAL AMOUNTS BID REPRESENTED THE PRODUCT OF THE QUOTED UNIT PRICES PER THOUSAND MULTIPLIED BY THE NUMBER OF THOUSANDS REQUIRED. HOWEVER, AN EXAMINATION OF THE UNIT QUOTATIONS OF WARREN HARRIS DISCLOSED THAT A SIMILAR COMPUTATION PRODUCED A TOTAL OF $1,023.53, SHOWN AS FOLLOWS:

TABLE

37,500 AT $1.93 M $ 72.38

225,000 AT 1.93 M434.25

150,000 AT .99 M 148.50

60,000 AT .99 M 59.40

300,000 AT 1.03 M 309.00

$1,023.53 YOU INDICATE THAT IF ACCEPTED AS THE ACTUAL AMOUNT BID, THIS COMPUTATION WOULD HAVE THE EFFECT OF DISPLACING KIMBALL AND MAKING WARREN HARRIS THE LOWEST BIDDER UNDER THE INVITATION.

NEITHER UNITED STATES GOVERNMENT PRINTING OFFICE CONTRACT TERMS NO. 1 (GPO FORM NO. 198) NOR THE SPECIAL TERMS AND CONDITIONS (GPO FORM 2459D), WHICH ARE INCORPORATED BY REFERENCE IN THE SPECIFICATIONS, PRESCRIBE A METHOD FOR RESOLVING DIFFERENCES BETWEEN UNIT PRICES AND EXTENDED TOTALS. ACCORDINGLY, IN THE ABSENCE OF ESTABLISHED CRITERIA, YOUR OFFICE REQUESTED WALTER J. GARFIELD AND ASSOCIATES, THE WASHINGTON REPRESENTATIVE OF WARREN HARRIS, TO CLARIFY THE INTENT OF ITS BID. BY LETTER DATED MARCH 15, 1967, MR. GARFIELD ADVISED YOUR OFFICE THAT THE BID IN QUESTION WAS BASED ON THE QUOTED PER 1,000 RATE AND THAT THE TOTAL EXTENSION OF $1,674.89 WAS IN ERROR AND SHOULD BE DISREGARDED. IN THE CIRCUMSTANCES, YOU REQUEST OUR DECISION AS TO WHETHER THE EXTENDED TOTAL OF $1,674.89 MAY BE CORRECTED TO $1,023.53 AND THE CONTRACT AWARDED TO WARREN HARRIS.

ON THE RECORD, THERE IS NO DOUBT THAT WARREN HARRIS' BID CONTAINED A CLERICAL ERROR, OBVIOUS ON THE FACE OF THE BID, IN STATING AN EXTENDED TOTAL PRICE WHICH EXCEEDED THE CORRECT SUM OF THE UNIT PRICES. THAT BEING THE CASE, THE ISSUE RESOLVES ITSELF INTO WHETHER THE UNIT PRICES QUOTED BY WARREN HARRIS SHOULD PROPERLY PREVAIL OVER THE EXTENDED TOTAL PRICE. THE BID AND ACCEPTANCE FORM (GPO FORM 183A), ON WHICH WARREN HARRIS SUBMITTED ITS BID, CONTAINS THE FOLLOWING LANGUAGE:

"THE UNDERSIGNED OFFERS AND AGREES, IF THIS BID BE ACCEPTED, TO FURNISH ANY OR ALL OF THE ITEMS UPON WHICH PRICES ARE QUOTED, AT THE PRICE SET OPPOSITE EACH ITEM * * *" IT THUS MAY BE SAID THAT THE INVITATION PROVIDED, IN EFFECT, THAT UNIT PRICES WOULD GOVERN IN THE CASE OF ERROR IN THE EXTENDED TOTAL PRICE. IT IS ALSO CLEAR THAT THE BIDDER'S OFFER WAS TO PERFORM AT THE UNIT PRICES QUOTED WITHOUT REFERENCE TO THE EXTENDED TOTAL PRICE. IN SUCH A SITUATION, AND IN THE ABSENCE OF ANY INDICATION TO THE CONTRARY, WE BELIEVE THAT THE NORMAL INTERPRETATION OF THE BID SHOULD BE THAT THE INDIVIDUAL UNIT PRICES STATED SHOULD CONTROL AND THAT THE EXTENDED TOTAL MAY BE CORRECTED TO CONFORM TO THE ACTUAL TOTAL OF THE UNIT ITEM PRICES.

IN VIEW OF THE FOREGOING, WE WOULD NOT OBJECT IN THE CIRCUMSTANCES OF THIS CASE TO YOUR CONSIDERATION OF THE WARREN HARRIS BID IN THE CORRECT AMOUNT OF $1,023.53.