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B-124278, JUN. 28, 1955

B-124278 Jun 28, 1955
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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF JUNE 9. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO ERRORS ALLEGED BY THE WESTINGHOUSE ELECTRIC CORPORATION AND THE GENERAL ELECTRIC COMPANY TO HAVE BEEN MADE IN THEIR BIDS SUBMITTED IN RESPONSE TO INVITATION NO. THAT THE CORRECT LUMP SUM PRICES FOR THE THREE POWER CIRCUIT BREAKERS ARE $48. WAS SENT BY THE COMPANIES TO YOUR OFFICE PRIOR TO THE OPENING OF THE BIDS IN QUESTION. YOU STATE THAT THE GOVERNMENT'S ESTIMATE FOR THE TYPE OF EQUIPMENT OFFERED BY EACH OF THE BIDDERS WAS $49. FOR THE THREE POWER CIRCUIT BREAKERS AND SPARE PARTS REQUIRED UNDER SCHEDULE NO. 3 IS APPROXIMATELY ONLY ONE- THIRD OF THE ONLY OTHER BID ON THAT SCHEDULE AND THE GOVERNMENT'S ESTIMATE.

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B-124278, JUN. 28, 1955

TO MR. L. N. MCCLELLAN, CONTRACTING OFFICER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 9, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO ERRORS ALLEGED BY THE WESTINGHOUSE ELECTRIC CORPORATION AND THE GENERAL ELECTRIC COMPANY TO HAVE BEEN MADE IN THEIR BIDS SUBMITTED IN RESPONSE TO INVITATION NO. DS-4379.

THE WESTINGHOUSE ELECTRIC CORPORATION SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHER ITEMS, THREE POWER CIRCUIT BREAKERS FOR THE LUMP SUM OF $16,000 AND TO FURNISH APPLICABLE SPARE PARTS FOR THE LUMP SUM OF $1,325, SCHEDULE NO. 3. THE GENERAL ELECTRIC COMPANY SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHER ITEMS, THREE POWER CIRCUIT BREAKERS FOR THE LUMP SUM OF $16,600 AND TO FURNISH APPLICABLE SPARE PARTS FOR THE LUMP SUM OF $1,534, SCHEDULE NO. 3.

BY LETTERS DATED MAY 11 AND 12, 1955, THE WESTINGHOUSE ELECTRIC CORPORATION AND THE GENERAL ELECTRIC COMPANY ADVISED THAT, IN QUOTING ON SCHEDULE NO. 3, THEY HAD INADVERTENTLY QUOTED THE PRICE OF ONLY ONE POWER CIRCUIT BREAKER RATHER THAN THE PRICE FOR THREE POWER CIRCUIT BREAKERS AS REQUIRED, AND THAT THE CORRECT LUMP SUM PRICES FOR THE THREE POWER CIRCUIT BREAKERS ARE $48,000 AND $49.800, RESPECTIVELY. THE COMPANIES REQUESTED THAT THEY BE PERMITTED TO WITHDRAW THEIR BIDS ON SCHEDULE NO. 3 OR TO CORRECT THEIR BID PRICES ON THAT SCHEDULE. IN SUPPORT OF THE ALLEGATIONS OF ERROR, EACH OF THE COMPANIES SUBMITTED A COPY OF THEIR PRINTED PRICE LISTS AND A COPY OF A QUOTATION ON THE POWER CIRCUIT BREAKERS WHICH, IT APPEARS, WAS SENT BY THE COMPANIES TO YOUR OFFICE PRIOR TO THE OPENING OF THE BIDS IN QUESTION.

THE ABSTRACT OF BIDS SHOWS THAT THE ONLY OTHER BID ON SCHEDULE NO. 3 SPECIFIED A LUMP SUM PRICE OF $48,955 FOR THREE POWER CIRCUIT BREAKERS AND APPLICABLE SPARE PARTS. YOU STATE THAT THE GOVERNMENT'S ESTIMATE FOR THE TYPE OF EQUIPMENT OFFERED BY EACH OF THE BIDDERS WAS $49,000 (INCLUDES COST OF SERVICES OF ERECTION ENGINEER). THUS, EACH OF THE BIDS OF THE WESTINGHOUSE ELECTRIC CORPORATION AND THE GENERAL ELECTRIC COMPANY OF $17,325 AND $18,134, RESPECTIVELY, FOR THE THREE POWER CIRCUIT BREAKERS AND SPARE PARTS REQUIRED UNDER SCHEDULE NO. 3 IS APPROXIMATELY ONLY ONE- THIRD OF THE ONLY OTHER BID ON THAT SCHEDULE AND THE GOVERNMENT'S ESTIMATE. YOU STATE FURTHER THAT HAD THE COMPANIES NOT ALLEGED ERRORS IN THEIR BIDS, YOU WOULD HAVE REQUESTED VERIFICATION OF THEIR BIDS PRIOR TO MAKING AN AWARD.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT THE COMPANIES MADE ERRORS IN THEIR BIDS AS ALLEGED. IF THE BIDS BE CORRECTED TO REFLECT THE INTENDED PRICE FOR THE THREE POWER CIRCUIT BREAKERS REQUIRED UNDER SCHEDULE NO. 3, NEITHER OF THE BIDS WILL BE THE LOWEST BID RECEIVED ON THAT SCHEDULE. ACCORDINGLY, SINCE THE COMPANIES ALLEGED AND EXPLAINED THE ERRORS PRIOR TO AWARD, THE BIDS OF WESTINGHOUSE ELECTRIC CORPORATION AND THE GENERAL ELECTRIC COMPANY, AS TO SCHEDULE NO. 3, MAY BE DISREGARDED IN MAKING THE AWARD.

YOUR REQUEST FOR AUTHORITY TO DETERMINE ADMINISTRATIVELY, WITHOUT THE SUBMISSION THEREOF TO OUR OFFICE FOR ADVANCE DECISION, THE TYPE OF ERROR IN BID CASE CONSIDERED IN THIS DECISION IS UNDER CONSIDERATION AND YOU WILL BE ADVISED AT A LATER DATE.

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