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Mr. WILLIAMS. When these invitations to bid are sent out, is it just a form that goes to the respective bidders, or is there a letter describing it more completely?

Mr. CROTHERS. It is a prescribed form we have giving all pertinent information.

Mr. WILLIAMS. Do not these respective bidders perhaps inquire individually of the nature of the bid and whether it is negotiated or advertised ?

Mr. CROTHERS. In some cases they do. However, in that case we generally include such bids in the Department of Commerce's synopsis, which is rather far-reaching.

Mr. WILLIAMS. The advertised bids?
Mr. CROTHERS. Yes.
Mr. WILLIAMS. Any bids?
Mr. CROTHERS. The negotiated.

Mr. WILLIAMS. Then describing these bids as "advertised” is a misnomer. It is not that they are advertised in the Federal Register, or newspapers, but "advertised” describe when they are opened and the circumstances of the opening.

Mr. CROTHERS. In a way it is. Publicly opened is probably a better definition.

Mr. BROWNSON. Actually the main difference between an advertised bid and a negotiated bid is in the way it is opened.

Mr. CROTHERS. That is really true. Mr. WILLIAMS. And of course the general rules that follow thereafter. Normally, on an advertised bid you take the low bidder, all other things being equal. That is not necessarily true on a negotiated bid.

Mr. CROTHERS. On an advertised bid a definite time is set for the opening. You cannot consider anything else after that. It is over.

Mr. BROWNSON. Does the letter accompanying these bids ordinarily indicate whether the bid will be negotiated or advertised ?

Mr. CROTHERS. There is not usually a letter accompanying. There is a standard form descriptive of the item and the time set for receiving bids.

Mr. BROWNSON. On the negotiated bid is there a letter that informs them of this type of bid?

Mr. CROTHERS. Not in the standard form which was used in some of these cases. If they do not use the standard form there could be a letter.

Mr. BROWNSON. I would like to ask unanimous consent to include these two requisitions which have been discussed in the record as exhibits 26 and 27, and I would like to note that nowhere on these exhibits do we find any evidence of time stamp on the forms as to when they were received and processed.

(Exhibits 26 and 27 are as follows:)

Mr. KENNELLY. I just want to suggest in this statement that we have some mention made in there of the authority under which these bids were negotiated, the legal authority, and of GSA or FOA or other regulations that are applicable, so that we will know what authority is the basis for GSA's procedure.

Mr. BROWNSON. We have talked about advertised bids and negotiated bids. I would like to ask what constitutes an advertised bid. What constitutes advertising in that sense of the word?

Mr. CROTHERS. Advertised bids is where we solicit bids from a number of suppliers setting a specific time of opening, such as 10 o'clock in the morning of a certain day. All bids received prior to that date and up to that time are opened and publicly disclosed. No bids received subsequent to 10 o'clock on that given day receive consideration, except in some instances where it may be established through the Post Office Department that the bid was late due to faulty delivery. That is the only consideration.

Mr. BROWNSON. Those cases I would imagine are relatively infrequent?

Mr. CROTHERS. Yes; and they are substantiated by the Post Office Department in the folder.

Mr. BROWNSON. The burden of the request in that case would rest upon the person making the bid.

Mr. CROTHERS. We have in instances, when it is evident that the bid was mailed on time by its postmark but received after the opening, contacted the Post Office for a check of the situation.

Mr. BROWNSON. What constitutes a negotiated bid?

Mr. CROTHERS. A negotiated bid is where the purchasing office will in some instances—in many instances, in fact-send out bids to a group of interested bidders and set a day of opening on which the bids must be received by the closing of that particular

day. It is not too different in some instances than an advertised bid in that the forms are mailed to the prospective bidders.

There are other cases I believe where there are a very few suppliers of a commodity, and in that case it may be direct negotiation with those few suppliers.

Mr. BROWNSON. In this particular case we have established that on receiving the request for bids that the Retort Pharmaceutical Co., or anyone else bidding on these particular requests, would have no way of knowing whether they were to be negotiated bids or advertised bids.

Mr. CROTHERS. Not on the first two, so far as I can see. The only evidence that I can read there is that the offer closed at 5 o'clock on a certain

day which indicates to me it was a negotiated bid. Mr. BROWNSON. How can you tell from that?

Mr. CROTHERS. Otherwise there would be a time set for opening during the working hours of the office which would be 10, 11, 12, or 2 or 3 o'clock. It would never be 5 o'clock, which would be the closing hour.

Mr. BROWNSON. This particular request for bid that I have here simply says: "Bid closing date, bids will be received at this office not later than February 8, 1952.”

Mr. CROTHERS. Which is definitely an indication it is a negotiation to me. That would not necessarily be so to the public.

Mr. WILLIAMS. When these invitations to bid are sent out, is it just a form that goes to the respective bidders, or is there a letter describing it more completely?

Mr. CROTHERS. It is a prescribed form we have giving all pertinent information.

Mr. WILLIAMS. Do not these respective bidders perhaps inquire individually of the nature of the bid and whether it is negotiated or advertised ?

Mr. CROTHERS. In some cases they do. However, in that case we generally include such bids in the Department of Commerce's synopsis, which is rather far-reaching.

Mr. WILLIAMS. The advertised bids?
Mr. CROTHERS. Yes.
Mr. WILLIAMS. Any bids?
Mr. CROTHERS. The negotiated.

Mr. WILLIAMS. Then describing these bids as "advertised” is a misnomer. It is not that they are advertised in the Federal Register, or newspapers, but "advertised" describe when they are opened and the circumstances of the opening.

Mr. CROTHERS. In a way it is. Publicly opened is probably a better definition.

Mr. BROWNSON. Actually the main difference between an advertised bid and a negotiated bid is in the way it is opened.

Mr. CROTHERS. That is really true.

Mr. WILLIAMS. And of course the general rules that follow thereafter. Normally, on an advertised bid you take the low bidder, all other things being equal. That is not necessarily true on a negotiated bid.

Mr. CROTHERS. On an advertised bid a definite time is set for the opening. You cannot consider anything else after that. It is over.

Mr. BROWNSON. Does the letter accompanying these bids ordinarily indicate whether the bid will be negotiated or advertised ?

Mr. CROTHERS. There is not usually a letter accompanying. There is a standard form descriptive of the item and the time set for receiv

ing bids.

Mr. BROWNSON. On the negotiated bid is there a letter that informs them of this type of bid?

Mr. CROTHERS. Not in the standard form which was used in some of these cases.

If they do not use the standard form there could be a letter.

Mr. BROWNSON. I would like to ask unanimous consent to include these two requisitions which have been discussed in the record as exhibits 26 and 27, and I would like to note that nowhere on these exhibits do we find any evidence of time stamp on the forms as to when they were received and processed.

(Exhibits 26 and 27 are as follows:)

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HOT GIBAL GRVICES MINISTRATION, KLIROM:CY SOCUREMMNT SERVICE

Soronth and D Stroote SW., Washington, D.C.

who mdorolnod are to furnishe at the pricos stated, tho following: Doscrention

Quantity Unit Prico Total Prics PIECIPEAT COUNTAT AND CODE: INDOCHI: LA 95.

BID MOST.'G DATE: BIDS WILL BE caDIODITY MLASS CODE:370

RECEIVED THIS OFFICE NOT LATO.

TRA NCPTPP 7, 1951. 18-WAD008 KKDIC INAL HD PHARWCEUTICAL PREPARATIONS, INCLUDING DDT 10% DUSTIG POVER, ADHESIVE PLASTIMAR, SURGICAL, USP, AND SOFT SOAP, USP, as furthor spocillod on Continuation Shoot. Nos. 2 and 3.

"The diddor warrants that t:o pricos quotod horcin crc not in cxc086 of applicablo ceiling pricos estrblishod by tho Econonic Stabilization Afoncy or other authorize Government agency and in effect upon the dazto horoof for tho supplios or servicos to be furnished horoundor."

31ddor Reprogonts: Thet tho aggroacto munbor of oploy008 of this bidder and his arfullatos 13 1500 or zoro)_BV(1088 t! 500).

Cacck 7ropriato spe.co.

DIA OF SOURCE: MATORIALS FORU: ISHIN U.:DER T::IS IT.-TIO!: 20 3ID SELL BE CF

DA-ESTIC SCJN.CE, SUPL IDD FC 1:2 U TZO ST. 12S ... ITS POSSESS:C.

Contimation Shcots Nos. 2 and 3, Special Prorror. Contrect Toms (Rovisca July 15, 1949), Gonoral Conditions for Special Pro-rp-7 Contracts, (Rovisod Nov.21, 1950), and Toro PO-14, Attachod horoto, aro noroby :: do a part of this Invitation to Bid.

DIELLITRY: Eurlicst possiblo dclivery is roquirod. Biddor shall stato definito

dolivory dato 13 space provided bolow.

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Retort Pharmaceutical co., Inc. (Tia:c of'?lis et individual and addrc68) By Cecis

1. Waller (Sicators and titlc) Vice-President

etc

Novembor 5th 1952

ACCEPTED BY THE GOVER17 IT:

Manc

DJUS

Titic

EXHIBIT 26—Continued

Item

CONTINUATION' SHWET NO.
Unit (10)

h 5-370-00_11201-2229
Description

uantity Unit Price Total Price SODIUII BICALEBO:IATE, TABLDIS, 0.6 sm. , USP.,

DEL (10 gr.) 1000 to bottle.

10.000 ✓ $.40 $4000.00

2/3 wks bottles

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10

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POLSSIUM PERMANGAATE, LABLETS,
0.324 GH. (5 GR.) 100 to bottlo

$.16

$1600.00

10,000
bottlce

2/3 WKS

- ADESIVE PLASTER, SURGICI, USP,

12" x 10 yards, plain, in conformanco
vith Tod. Spec. 0-PALA, Type I.

$2.75

5,000 rolls 20,000 3288.

$13,750.00 2/3 wks $2780.00 3/4 wks

12 - SOAP, sart, USP, i 10. Jars.

$.278

BIDIOTKR SBALL SPECIFY:

TYPE PACKIIG

Total not weight

Total Gross Weight

Mumber of Casco

Cubic Heamurement...

Rotort Pharmaceutioal Co., Inc.
POINT OF ORIGN, Long Island City 1.1. 42-25 Ninth Street, Long laland City

(al ipping Point) Stato nano and location of factory or plant).

DELIVERED POINT: 14.3, NEW YORK

TT.A.S. 1.5.PART OP DM) or(F.0.3, FACTORY OR PLATT

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