B-129098, SEP. 6, 1956

B-129098, SEP. 6, 1956

TO THE HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 29, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE EUGENE DIETZGEN COMPANY ALLEGES IT MADE IN ITS BID OPENED ON JULY 27, 1956.

ON JULY 20, 1956, THE GOVERNMENT PRINTING OFFICE REQUESTED BIDS FOR FURNISHING TWO ITEMS OF TRACING PAPER OF IDENTICAL SPECIFICATIONS EXCEPT FOR SIZE AND COLOR. ITEM 1 COVERS 6,570 SHEETS OF BLUE-TINTED TRACING PAPER, SIZE 34 INCHES BY 44 INCHES, AND ITEM 2 COVERS 31,365 SHEETS OF WHITE TRACING PAPER, SIZE 32 INCHES BY 44 INCHES. IN RESPONSE, THE EUGENE DIETZGEN COMPANY SUBMITTED A BID DATED JULY 26, 1956, OFFERING TO FURNISH THE BLUE-TINTED TRACING PAPER REQUIRED UNDER ITEM 1 FOR THE LUMP SUM OF $1,226.05 AND TO FURNISH THE WHITE TRACING PAPER REQUIRED UNDER ITEM 2 FOR THE LUMP SUM OF $4,854.45. ON THE BASIS OF THE LUMP SUM PRICES SPECIFIED BY THE COMPANY, THE UNIT PRICES FOR ITEMS 1 AND 2 ARE $186.61 AND $154.77 PER THOUSAND SHEETS, RESPECTIVELY. THE EIGHT OTHER BIDDERS ON ITEM 1 QUOTED UNIT PRICES RANGING FROM $172 TO $248 PER THOUSAND SHEETS; AND THE NINE OTHER BIDDERS ON ITEM 2 QUOTED UNIT PRICES RANGING FROM $163 TO $248 PER THOUSAND SHEETS.

YOU STATE THAT ON JULY 31, 1956, THE MANAGER OF THE EUGENE DIETZGEN COMPANY TELEPHONED THE CONTRACTING OFFICER ALLEGING THAT THE COMPANY HAD MADE AN ERROR IN ITS BID ON ITEM 2. BY CONFIRMING LETTER DATED JULY 31, 1956, THE COMPANY ADVISED THAT THE UNIT PRICE FOR ITEM 2 SHOULD HAVE BEEN IDENTICAL TO THE UNIT PRICE FOR ITEM 1, SINCE THE YARDAGE REQUIRED FOR EACH SHEET SIZE IS THE SAME. IN AN UNDATED LETTER, WHICH, IT IS REPORTED, WAS RECEIVED SEVERAL DAYS AFTER JULY 31, 1956, THE COMPANY STATED AS FOLLOWS:

"CONFIRMING OUR PHONE CONVERSATION OF THIS DATE, I AM ENCLOSING OUR LATEST PRICE LIST. IF YOU WILL REFER TO PAGE 3 YOU WILL SEE THAT THE LIST PRICES OF NO. 198MW AND NO. 199MW ARE IDENTICAL.

"ON THE BID IN QUESTION, NO. 47585, WE QUOTED NO. 198MW ON THE 6,570 SHEETS AND NO. 199MW ON THE 31,365 SHEETS. AS YOU CAN SEE BY OUR PRICE LIST, A 50 YARD ROLL 36 INCHES WIDE SELLS FOR $18.70 OR $37.40 PER 100 YARDS.

"BOTH THE 34 INCHES BY 44 INCHES AND THE 32 INCHES BY 44 INCHES SHEETS ARE CUT FROM 36 INCH WIDTH STOCK AND 1,240 YARDS ARE REQUIRED FOR 1000 SHEETS. IF YOU WILL FIGURE THESE SHEETS, USING THE PRICE AND YARDAGE SHOWN, YOU WILL SEE THAT THIS WAS AN OBVIOUS ERROR ON OUR PART AS THE PRICE FOR THE 31,365 SHEETS SHOULD BE APPROXIMATELY FIVE TIMES AS MUCH AS THE 6,570 SHEETS. ORDINARILY OUR MAXIMUM DISCOUNT TO OUR DEALERS AND THE GOVERNMENT IS FORTY PERCENT.

"AS STATED TO YOU IN OUR LETTER OF JULY 31, 1956, WE WOULD APPRECIATE YOUR COOPERATION IN WITHDRAWING OUR BID ON THIS INVITATION.'

IN YOUR LETTER OF AUGUST 29, 1956, YOU STATE AS FOLLOWS:

"ON THE BASIS OF THE INFORMATION FURNISHED BY THE BIDDER, IT WOULD REQUIRE 38,893 YARDS OF THE TRACING PAPER TO CUT OUT 31,365 SHEETS, SIZE 32 BY 44 INCHES. THIS NUMBER OF YARDS TIMES $37.40 PER HUNDRED YARDS ($18.70 PER 50-YARD ROLL) WOULD AMOUNT TO $14,545.98. AFTER DEDUCTING 40 PERCENT DISCOUNT, THE TOTAL PRICE FOR THIS NUMBER OF SHEETS WOULD BE $8,727.59. THE BIDDER HAS STATED THAT THE PRICE FOR EACH OF THE ITEMS SHOULD BE THE SAME. IT WOULD APPEAR THAT IN ARRIVING AT THE PRICE FOR ITEM NO. 1 FOR 6,570 SHEETS, THE BIDDER QUOTED 40 PERCENT OF THE LIST PRICE RATHER THAN DEDUCTING 40 PERCENT AND BIDDING ON THE 60 PERCENT. WOULD APPEAR, THEREFORE, THAT AN ERROR WAS MADE BY THE BIDDER ON BOTH OF THE ITEMS OF TRACING PAPER.

"IN REVIEWING THE BIDS, IT IS NOTED THAT MOST OF THE BIDDERS QUOTED THE SAME UNIT PRICE FOR ITEM NO. 1 AND ITEM NO. 2. TWO OF THE OTHER BIDDERS QUOTED A SLIGHTLY HIGHER PRICE FOR ITEM NO. "

ON THE RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, THE BID OF THE EUGENE DIETZGEN COMPANY AS TO ITEM 2 MAY BE DISREGARDED IN MAKING THE AWARD.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTOR'S LETTERS AND ITS PRINTED PRICE LIST, ARE RETURNED.