B-140800, SEP. 29, 1959
Highlights
GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 18. WAS THE ONLY ONE RECEIVED FOR THE LOS ANGELES AREA AND WAS ACCEPTED. THE BIDDER NOTIFIED THE PROCURING OFFICE THAT THE BID WAS ERRONEOUS. THAT THE QUOTED PRICE OF $0.03 1/2 WAS INTENDED AS A PRICE EACH. WE CONCUR IN THE VIEW OF THE CONTRACTING OFFICER THAT THE PRICE OF $0.03 1/2 WAS SO FAR OUT OF LINE AS TO REQUIRE VERIFICATION BEFORE THE BINDING ACCEPTANCE COULD BE AFFECTED. CANCELLATION OF THE PURPORTED AWARD IS THEREFORE AUTHORIZED. YOU STATE THAT THE INTENDED BID OF $0.42 PER DOZEN IS CONSIDERED TO BE UNREASONABLE AND THAT IT IS PROPOSED TO READVERTISE. WE ASSUME YOU HAVE GIVEN. OR WILL GIVE.
B-140800, SEP. 29, 1959
TO THE HONORABLE FRANKLIN FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:
REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 18, 1959, CONCERNING AWARD OF A CONTRACT FOR LAUNDERING AND TOWEL SERVICE, FOR THE FISCAL YEAR 1960, TO THE COMMUNITY LINEN SERVICE OF LOS ANGELES, UNDER INVITATION SF-9244- 59.
THE BID OF COMMUNITY LINEN SERVICE, IN THE AMOUNT OF $0.03 1/2 PER DOZEN FOR TOWEL LAUNDRY SERVICE, WAS THE ONLY ONE RECEIVED FOR THE LOS ANGELES AREA AND WAS ACCEPTED. IMMEDIATELY UPON RECEIPT OF THE CONTRACT, THE BIDDER NOTIFIED THE PROCURING OFFICE THAT THE BID WAS ERRONEOUS, AND THAT THE QUOTED PRICE OF $0.03 1/2 WAS INTENDED AS A PRICE EACH, RATHER THAN PER DOZEN AS CALLED FOR BY THE INVITATION. HE ALSO CALLED ATTENTION TO THE FACT THAT OTHER ITEMS LISTED IN THE INVITATION CALLED FOR PRICES PER UNIT.
IN VIEW OF THE LOW BIDS OF $0.36, $0.26, AND $0.24 PER DOZEN, SUBMITTED FOR THE SAME SERVICE AT OTHER LOCATIONS UNDER THE SAME INVITATION, WE CONCUR IN THE VIEW OF THE CONTRACTING OFFICER THAT THE PRICE OF $0.03 1/2 WAS SO FAR OUT OF LINE AS TO REQUIRE VERIFICATION BEFORE THE BINDING ACCEPTANCE COULD BE AFFECTED. CANCELLATION OF THE PURPORTED AWARD IS THEREFORE AUTHORIZED.
YOU STATE THAT THE INTENDED BID OF $0.42 PER DOZEN IS CONSIDERED TO BE UNREASONABLE AND THAT IT IS PROPOSED TO READVERTISE. WE ASSUME YOU HAVE GIVEN, OR WILL GIVE, CONSIDERATION TO THE POSSIBILITY OF NEGOTIATING WITH THE BIDDER UNDER SECTION 302 (C) (9) OR (13) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949.