B-127395, APR. 2, 1956

B-127395, APR. 2, 1956

TO MR. GEORGE GUSSMAN, CONTRACTING OFFICER, HOUSING AND HOME FINANCE AGENCY:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 21, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER A BID SUBMITTED ON FEBRUARY 10, 1956, BY THE FLORENCE STOVE COMPANY IN RESPONSE TO INVITATION NO. PHA-A 72 MAY BE WITHDRAWN IN VIEW OF THE BIDDER'S ALLEGATION OF ERROR.

BIDS WERE REQUESTED UNDER ITEM NO. IA, NO. IB AND NO. IC FOR FURNISHING THE ENTIRE REQUIREMENTS OF PHA-OWNED AND OPERATED HOUSING PROJECTS IN SPECIFIED STATES FOR GAS-FIRED HEATERS OF CIRCULATOR TYPE, AND OF 35,000, 50,000 AND 65,000 BTU CONTENT, RESPECTIVELY, DURING THE CALENDAR YEAR 1956; AND UNDER ITEM NO. IIA, NO. IIB AND NO. IIC, FOR GAS-FIRED HEATERS, OF RADIANT CIRCULATOR TYPE, WITH BTU RATINGS AS SPECIFIED UNDER ITEM I. THE OPENING OF THE BIDS ON FEBRUARY 15, 1956, DISCLOSED THAT THE COMPANY'S BID WAS THE LOWEST RECEIVED FOR FURNISHING HEATERS AS CALLED FOR UNDER A, B AND C OF ITEM NO. I, AND THE SOLE BIDDER FOR THE TYPES OF HEATERS REQUIRED UNDER A, B AND C OF ITEM NO. II. ONLY ONE OTHER BID, WHICH WAS TWICE AS HIGH AS THE COMPANY'S BID, WAS RECEIVED FOR FURNISHING THE HEATERS CALLED FOR UNDER ITEM NO IA AND TWO OTHER SUBSTANTIALLY HIGHER BIDS WERE RECEIVED FOR THOSE CALLED FOR UNDER ITEM NO. IB AND NO. IC.

BY TELEPHONE CONVERSATION AND CONFIRMING LETTER OF FEBRUARY 23, 1956, PRIOR TO ANY AWARD OR ACCEPTANCE, THE COMPANY ALLEGED THAT IT HAD MADE AN ERROR IN ITS BID IN THAT IT HAD INADVERTENTLY FAILED TO INCLUDE $18.90 PER HEATER IN ITS BID TO COVER THE COST OF THE THERMOSTAT AND THE CIRCULATOR, THE TWO ACCESSORIES WHICH IT OFFERED TO FURNISH WITH EACH HEATER. IN ITS LETTER IT REQUESTED PERMISSION EITHER TO WITHDRAW ITS BID OR TO SUBMIT A CORRECTED BID TO INCLUDE THE REFERRED-TO COST OF THE TWO ACCESSORIES. SUPPORT OF ITS ALLEGATION OF ERROR IT SUBSEQUENTLY FORWARDED A COPY OF ITS WORKSHEET ON WHICH THE BID ALLEGEDLY WAS BASED, A COPY OF ITS APPLICABLE PRICE LIST EFFECTIVE JANUARY 1, 1956, AND A SWORN STATEMENT EXPLAINING HOW THE ERROR OCCURRED. THESE DOCUMENTS ESTABLISH SATISFACTORILY THAT A BONA FIDE ERROR WAS MADE IN THE BID AND THAT, AS ALLEGED, ITS INTENDED UNIT BID PRICES WERE $18.90 HIGHER PER ITEM THAN THE UNIT PRICES QUOTED IN ITS BID.

IN THE CIRCUMSTANCES, THE BID OF FLORENCE STOVE COMPANY MAY BE CORRECTED TO PROVIDE FOR PRICES ON ALL ITEMS $18.90 PER UNIT HIGHER THAN THE UNIT PRICES QUOTED IN ITS BID, AND THE BID SO CORRECTED MAY BE CONSIDERED ALONG WITH THE OTHER BIDS IN MAKING THE AWARD.

IN THE EVENT OF AN AWARD TO THE FLORENCE STOVE COMPANY A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.

THE PAPERS, WITH THE EXCEPTION OF THE COMPANY'S LETTER OF FEBRUARY 23, 1956, ITS AFFIDAVIT DATED MARCH 16, 1956, AND ITS DISTRIBUTOR PRICE LIST EFFECTIVE JANUARY 1, 1956, ARE RETURNED.