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B-190342 1 (1978-01-26)

handle is hein.gao/gaobadfqq0001 and id is 1 raw text is: 
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FILE' 0-190342


DATE:  Jauuary 26, 1978


MATTER  OF:  Anabolic, Inc.

DIGEST:


       Request for upward modification of contract
       price due to alleged error in bid claimed
       after award cartnot he allowed when contract-
       ing officer was not on constructive notice
       of possibility of error despite great dis-
       parity between only two bids ceceived since
       there are other indices that provide more
       reliable basis for zomparison of bids (prior
       prdcurement history) and contracting officer
       does not have the duty to know entire market
       place for item to extent that cost of raw
       materials is involved.
     Anabolic, Inc. (Anabolic), reauests,that our Office
idCOnsider Veterans Administration (VA) Administrative
Determination No. 77-14, August 3, 1977, denying Anabolic's
reqi'st toria price adjustment due to a mistake in bid
tiscovered atcv  award, under VA contrpict No. V797P-5691d,
awarded January 26, 19771, for Colchicie TablEcs,

     :zlicitation No. MS-24-77 requested bids for 34 items,
but we are only concerne with item 1,  the summary bid foz
furnishing items 15-17 on an wall or none basis. There
were only two-bids received for item 18, Anabolic's $0.495
per unit and Danbury Company's $1.10 per unit. Purchas,
Oter  No. 77-MC-50201, totaling $18,693, was issued to
Anabolic for 37,764 bottles of the tablets on January 26,
1977.
     On February 1, 1977, Anabolic.notified the VA that
Anabolic's unit price offer of $0.495 on item 18 was in
error:.and the price should have been $0.687. The reason
given 'for the error was that an administrative error
was m',.in  calculating the costs of raw materials necessary
to mahufacture the Colchicine Tablets. Anabolic pointed
to two contracts for the tablets that it was awarded by
the Defense Supply Agency (DSA), now the Defense Logistics
Agency, as follows:


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