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B-178805 1 (1973-09-28)

handle is hein.gao/gaobaadgg0001 and id is 1 raw text is: 


                            COMPTROLLER GENERAL OF THE UNITED STATES
    4)                                 WASHINGTON, D.C. ,42I


         -178?.05                            September 28, 1973



         The Honorable
     y' The Secretary of Agriculture

         Dear Mr. Secretary:
              Reference i =ado to letter dated May 30, 1973, with enclosures,
LC0      from the Director, Office of Plant and Operations, requesting a decision
         as to theaction to be taken concerning auzerrorjaflaged by the Graybar
      5 ElectrLc toipauy, Inc., tohave bean uade in its bid upon which purchase
         order Ilo, RB-20349-ARS-72 Is based.                                          Oj

              By jrvitation for bids No. 311-RB-AR-72, the Agricultural Research
         Service requested bide for furnishing various electrical parts and oquip-
         mernt. The invitation contained 37 ite=s, each to be bid individually,
         with a total not a=ount for all items to be indicated by the bidder. On
         para BS-1 of the invitation, bidders were advieed that thn Government
         resat.vou the right to make aw.rd on the basis of either the low aggroate
         bid (Total Net Mount), by group of itcms, or on an itc-by-item basin.
         Also, it was stated that a bidder nay indicate a Total Hat Aount for
         award on an agqrotlate basin; that the Tobal Not Mount may be equal to or
         less than the sum of the individual &ountu for items 1 through 37; and
         that if the bidder does not indicate a Total Net isount., the sum of the
         amounts bid on items 1 through 37 shall ba considered tte Total Net Mount,

              In responsc, Graybar submitted a bid wherein It. inserted a unit price
         for each iten and an aggregate total price of $7,129.50 for items 1 t rough
         37. Below its aggregate bid price it inserted Did basn., on award of all
         Items.  Graybar offered a prompt payment discount of 2 ptrcent for payment
         within 20 days. On June 29, 1972, purchase order 11o. RD-20349-ARS-72 wns
         issued to Cra7bar and it called for d'divery of items I   .rough 37 for the
         lump sum of $7,129.50.
                     1
              It Is reported that on November 28, 1972, reprosentatives of Craybar
        visited the contracting office and alleged that an error 14 addition was
        made in its bid in that the total not amount for items 1 Ithrough 37 should
        have been shown as $9,657.83 Instead of $7,129.50. One of Graybar's
        representatives stated that the error in bid was not noticed uptil the
        accounting office for the Agricultural Research Service contacted him
        regarding an overpayment of $2,178.11 on purchase order No. RB-20349-ARG-72.
        the overpayment occurred because Graybar was paid for thu supplies and equip-
        ment delivered on the basis ot the extended unit pricoset forth opposite
        items 1 through 3? rather than on the basis of the aggr'sgato total bid price.

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