B-108583, MAY 21, 1952

B-108583: May 21, 1952

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TO HAVE BEEN MADE IN HIS BID ON WHICH CONTRACT NO. AF 42(600)-6661 IS BASED. THE CONTRACTING OFFICER IS NOT ENTITLED TO A DECISION - SEE 26 COMP. 28 ID. 401 - AND HE WAS SO INFORMED IN A LETTER DATED MARCH 26. THE SAME QUESTION AGAIN WAS SUBMITTED BY THE CONTRACTING OFFICER IN HIS LETTER OF APRIL 17. IT IS BEING ADDRESSED TO YOU. FOURTEEN OTHER BIDS WERE RECEIVED RANGING FROM $15. WADMAN ADVISED THE CONTRACTING OFFICER THAT AN ERROR HAD BEEN MADE IN HIS BID WHICH WAS EXPLAINED AS FOLLOWS: "OUR ERROR OCCURED IN TOTALING THE AMOUNT ON THE ADDING MACHINE TAPE MARKED "B". ITEMS #33 AND #34 WERE DEDUCTED BY ERROR IN HITTING THE "SUBTRACT" KEY ON THE ADDING MACHINE RATHER THAN THE "ADDITION" KEY.

B-108583, MAY 21, 1952

PRECIS-UNAVAILABLE

SECRETARY OF THE AIR FORCE:

THERE HAS BEEN RECEIVED A LETTER DATED APRIL 17, 1952 (COPY ATTACHED), WITH ENCLOSURES, FROM ERNEST H. DUNAHOO, CAPTAIN, USAF, CONTRACTING OFFICER, HEADQUARTERS, OGDEN AIR MATERIEL AREA, HILL AIR FORCE BASE, UTAH, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY MR. V. J. WADMAN, 3511 HARRISON BOULEVARD, OGDEN, UTAH, TO HAVE BEEN MADE IN HIS BID ON WHICH CONTRACT NO. AF 42(600)-6661 IS BASED.

SINCE AN AWARD HAS BEEN MADE IN THE PRESENT CASE, THE CONTRACTING OFFICER IS NOT ENTITLED TO A DECISION - SEE 26 COMP. GEN. 993, AND 28 ID. 401 - AND HE WAS SO INFORMED IN A LETTER DATED MARCH 26, 1952, B 108583, COPY ENCLOSED. HOWEVER, THE SAME QUESTION AGAIN WAS SUBMITTED BY THE CONTRACTING OFFICER IN HIS LETTER OF APRIL 17, 1952. SINCE A DECISION APPEARS NECESSARY, IT IS BEING ADDRESSED TO YOU.

THE CONTRACTING OFFICE, HILL AIR FORCE BASE, UTAH, BY INVITATION NO. (IFB) 42-600-52-41 REQUESTED BIDS - TO BE OPENED FEBRUARY 18, 1952 - FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK NECESSARY FOR THE MODIFICATION AND ADDITION TO BUILDING E-185 AT THE SAID AIR FORCE BASE. IN RESPONSE TO THE INVITATION, MR. V. J. WADMAN SUBMITTED A BID DATED FEBRUARY 18, 1952, WHEREIN HE OFFERED TO PERFORM THE WORK FOR $13,938. FOURTEEN OTHER BIDS WERE RECEIVED RANGING FROM $15,836 TO $32,838.

BY LETTER DATED FEBRUARY 19, 1952, MR. WADMAN ADVISED THE CONTRACTING OFFICER THAT AN ERROR HAD BEEN MADE IN HIS BID WHICH WAS EXPLAINED AS FOLLOWS:

"OUR ERROR OCCURED IN TOTALING THE AMOUNT ON THE ADDING MACHINE TAPE MARKED "B". ITEMS #33 AND #34 WERE DEDUCTED BY ERROR IN HITTING THE "SUBTRACT" KEY ON THE ADDING MACHINE RATHER THAN THE "ADDITION" KEY. ITEM #35 FOR THE AMOUNT OF $300.00 WAS THEN ADDED TO OFFSET AND CORRECT THE ERROR IN ITEM #33. OUR FAILURE AND MISTAKE IN NOT ADDING $1,600.00 TO OFFSET AND CORRECT ITEM #34 IS WHERE WE ERRED.

"ENCLOSED HEREWITH, MARKED EXHIBIT" "IS AN ADDING MACHINE TAPE THAT WAS RUN AFTER RETURNING FROM THE BID OPENING, WHICH SHOWS THAT IF THE ABOVE ERROR HAD NOT BEEN MADE OUR BID PRICE WOULD HAVE BEEN $15,538.00."

IN SUPPORT OF HIS ALLEGATION OF ERROR, MR. WADMAN SUBMITTED COPIES OF HIS ADDING MACHINE TAPES AND HIS ORIGINAL WORK SHEET SHOWING THE BASIS USED IN COMPUTING THE COST FOR VARIOUS ITEMS OFFWORK AND OTHER ITEMS. THE WORK SHEET SUBMITTED BY MR. WADMAN SHOWS THE PRICES FOR MATERIAL, LABOR, OVERHEAD, BOND, FORMS AND TOOLS, AND PROFIT, THE TOTAL OF WHICH IS SHOWN THEREON AS $13,938.53. THE CORRECT TOTAL OF SAID ITEMS IS $15,538.53. ALSO, THE WORK SHEET SHOWS A TOTAL OF $150 FOR ITEM 33 - UNLOADING CAR - AND A TOTAL OF $800 FOR ITEM 34 - OVERHEAD AND BOND. THE ADDING MACHINE TAPE SUBMITTING BY MR. WADMAN SHOWS THAT THE AMOUNTS COVERING ITEMS 33 AND 34 OF THE WORKSHEET WERE ERRONEOUSLY DEDUCTED ON SAID TAPE AS ALLEGED AND THAT ONLY THE ERROR WITH RESPECT TO ITEM 33 ($150) WAS CORRECTED WHICH RESULTED IN AN UNDERSTATEMENT OF THE CORRECT TOTAL OF THE ITEMS ON THE WORK SHEET BY THE AMOUNT OF $1,600. ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, IT IS APPARENT THAT MR. WADMAN MADE AN ERROR IN HIS BID, AS ALLEGED.

IN THE CONTRACTING OFFICER'S LETTER OF APRIL 17, 1952, IT WAS STATED THAT BECAUSE TIME DID NOT PERMIT PROCESSING OF THE MISTAKE IN BID CASE IN ACCORDANCE WITH CUSTOMARY PROCEDURES, THE BID OF MR. WADMAN WAS ACCEPTED ON MARCH 3, 1952, SUBJECT TO CORRECTION, AS AUTHORIZED, BY THE GENERAL ACCOUNTING OFFICE. IT IS REPORTED THAT MR. WADMAN HAS COMPLETED 19 PERCENT OF THE CONTRACT WORK.

ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND SATISFACTORY EVIDENCE OF THE INTENDED BID PRICE WAS FURNISHED BY THE CONTRACTOR PRIOR TO AWARD - WHICH AWARD WAS SUBJECT TO CORRECTION BY THE GENERAL ACCOUNTING OFFICE - CONTRACT NO. AF 42(600)-6661 MAY BE AMENDED TO INCREASE THE CONSIDERATION FROM $13,938 TO $15,538, WHICH AMOUNT IS STILL LOWER THAN THE NEXT LOWEST BID.

A REFERENCE TO THIS DECISION SHOULD BE MADE IN FORWARDING THE AMENDMENT TO BE ATTACHED TO THE CONTRACT.

THE PAPERS ARE FORWARDED HEREWITH.