B-111295, SEP 18, 1952

B-111295: Sep 18, 1952

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TO HAVE BEEN MADE IN HIS BID OPENED ON JUNE 26 AND ACCEPTED ON JUNE 30. THE CONTRACTING OFFICER IS NOT ENTITLED TO A DECISION. THE DECISION IS BEING ADDRESSED TO YOU. THE ABSTRACT OF BIDS SHOWS THAT THE SIX OTHER BIDS RECEIVED WERE IN THE AMOUNTS OF $38. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK WAS $39. IT IS REPORTED THAT IMMEDIATELY FOLLOWING THE OPENING OF THE BIDS. 000 WAS MADE IN ADDING THE VARIOUS ITEMS MAKING UP HIS TOTAL BID PRICE. 447 THE PRICES IN THE "TOTAL" COLUMN WERE ADDED ON A SEPARATE SHEET AS $27. THE CORRECT TOTAL OF THE PRICES ON THE REFERRED-TO SHEET IS $37. IT IS APPARENT THAT THE CONTRACTOR MADE AN ERROR IN ADDING THE PRICES SHOWN ON SAID SHEET. 320 IS CONSIDERABLY LESS THAN THE OTHER BIDS AND IS LESS THAN THE GOVERNMENT'S ESTIMATE.

B-111295, SEP 18, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

THERE HAS BEEN RECEIVED A LETTER DATED JULY 21, 1952, WITH ENCLOSURES, FROM THE DIRECTOR OF PROCUREMENT, HEADQUARTERS, OGDEN AIR MATERIEL AREA, HILL AIR FORCE BASE, UTAH, REQUESTING A DECISION AS TO THE ACTION THAT SHOULD BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY NEWELL J. OLSEN, LOGAN, UTAH, TO HAVE BEEN MADE IN HIS BID OPENED ON JUNE 26 AND ACCEPTED ON JUNE 30, 1952, AND ASSIGNED CONTRACT NO. AF 42(600)-10009.

SINCE 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. HOWEVER, SINCE A DECISION APPEARS NECESSARY, THE DECISION IS BEING ADDRESSED TO YOU.

HILL AIR FORCE BASE, UTAH, BY INVITATION NO. 42-600-52-103 REQUESTED LUMP -SUM BIDS FOR THE CONSTRUCTION OF A MEZZANINE FLOOR IN WAREHOUSE 7B, BUILDING E-71, HILL AIR FORCE BASE. IN RESPONSE TO THE INVITATION, NEWELL J. OLSEN SUBMITTED A BID OFFERING TO PERFORM THE WORK FOR THE TOTAL AMOUNT OF $27,320. THE ABSTRACT OF BIDS SHOWS THAT THE SIX OTHER BIDS RECEIVED WERE IN THE AMOUNTS OF $38,385.16, $40,900, $42,443, $42,475, $44,200, AND $52,882. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK WAS $39,000.

IT IS REPORTED THAT IMMEDIATELY FOLLOWING THE OPENING OF THE BIDS, MR. OLSEN RETURNED TO THE PROCUREMENT OFFICE AND ALLEGED THAT AN ERROR HAD BEEN MADE IN HIS BID IN THAT A MISTAKE OF $10,000 WAS MADE IN ADDING THE VARIOUS ITEMS MAKING UP HIS TOTAL BID PRICE. BY LETTER OF THE SAME DATE MR. OLSEN CONFIRMED HIS ALLEGATION OF ERROR AND SUBMITTED IN SUPPORT THEREOF THE ORIGINAL QUOTATIONS HE RECEIVED FROM SUBCONTRACTORS ON THE FIRST FOUR ITEMS LISTED BELOW WHICH TOGETHER WITH THE OTHER ITEMS FORMED THE BASIS OF HIS BID PRICE.

MATERIALS FROM INSTALLATION &

SUB-CONTRACTORS PROFIT TOTAL

STEEL $ 7,909 $ 3,091 $11,000

ELECTRIC 4,750 500 5,250

LUMBER 6,509 5,491 12,000

SPRINKLING SYSTEM 6,570 500 7,070

CONCRETE 135 865 1,000

OVERHEAD & MISC. 1,000 1,000

$25,873 $11,447

THE PRICES IN THE "TOTAL" COLUMN WERE ADDED ON A SEPARATE SHEET AS $27,320.

THE CORRECT TOTAL OF THE PRICES ON THE REFERRED-TO SHEET IS $37,320. THUS, IT IS APPARENT THAT THE CONTRACTOR MADE AN ERROR IN ADDING THE PRICES SHOWN ON SAID SHEET, AS ALLEGED. THE CONTRACTOR'S BID OF $27,320 IS CONSIDERABLY LESS THAN THE OTHER BIDS AND IS LESS THAN THE GOVERNMENT'S ESTIMATE. ALSO, A BID PRICE OF $27,320 WOULD ALLOW LESS THAN $1,500 FOR THE COST OF INSTALLATION AND PROFIT, WHICH WOULD APPEAR TO BE INSUFFICIENT.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO DOUBT THAT AN ERROR WAS MADE BY MR. OLSEN IN HIS BID, AS ALLEGED. ACCORDINGLY, CONTRACT NO. AF-42(600)-10009 - WHICH WAS ACCEPTED SUBJECT TO THE CONSIDERATION OF THE ALLEGED ERROR BY THIS OFFICE - MAY BE AMENDED BY INCREASING THE CONSIDERATION SPECIFIED THEREIN BY $10,000, OR TO $37,320.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE AMENDMENT AUTHORIZED HEREIN.

A COPY OF THE LETTER DATED JULY 21, 1952, FROM THE DIRECTOR OF PROCUREMENT, HILL AIR FORCE BASE, UTAH, AND COPIES OF THE INVITATION FOR BIDS AND THE CONTRACT ARE FORWARDED HEREWITH. THE OTHER PAPERS WILL BE RETAINED IN THIS OFFICE.