B-116459, SEP 22, 1953

B-116459, SEP 22, 1953

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO LETTERS DATED JULY 1 AND SEPTEMBER 8, 1953, AND ENCLOSURES, FROM LOUIS S. SCHNARR, PURCHASING AND CONTRACTING OFFICER, 503RD AIR DEFENSE GROUP, PORTLAND INTERNATIONAL AIRPORT, PORTLAND, OREGON, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY LEE & DIERICKX COMPANY TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. AF 35(608)-116 DATED JUNE 30, 1953, IS BASED.

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 PROMPT DECISION APPEARS NECESSARY, THE DECISION IS BEING ADDRESSED TO YOU.

BY INVITATION NO. 35-608-53-49, THE PURCHASING AND CONTRACTING OFFICE, PORTLAND INTERNATIONAL AIRPORT, PORTLAND, OREGON, REQUESTED BIDS - TO BE OPENED JUNE 29, 1953 - FOR PAINTING 13 BUILDINGS AT SAID AIRPORT. THE INVITATION REQUESTED THAT THE BIDDERS SPECIFY A LUMP-SUM BID FOR THE ENTIRE JOB AND INDIVIDUAL BIDS FOR PAINTING EACH OF THE 13 BUILDINGS. RESPONSE TO THE INVITATION, LEE & DIERICKX COMPANY SUBMITTED A BID DATED JUNE 26, 1953, WHEREIN IT OFFERED TO FURNISH THE ENTIRE SERVICES FOR $6,790 AND TO PAINT, AMONG OTHERS, BUILDING T-729 FOR $694.

BY LETTER OF JUNE 30, 1953, THE COMPANY ADVISED THE PURCHASING AND CONTRACTING OFFICER THAT IT HAD MADE AN ERROR IN ITS BID WITH RESPECT TO BUILDING T-729; THAT IN ARRIVING AT ITS BID PRICE OF $694 THEREFOR IT USED 70 FEET AS THE LENGTH OF THE BUILDING WHEREAS THE ACTUAL MEASUREMENT WAS 200 FEET; AND THAT SUCH ERROR MADE A DIFFERENCE OF 52 SQUARES AT $8 PER SQUARE. THEREFORE, THE COMPANY REQUESTED THAT ITS BID BE INCREASED BY $416 OR TO A TOTAL OF $7,206. IN SUPPORT OF THE ALLEGED ERROR, THE COMPANY FURNISHED ITS ORIGINAL WORK SHEET SHOWING THAT ITS BID WITH RESPECT TO BUILDING T-729 WAS BASED ON A LENGTH OF 70 FEET.

IN THE LETTER OF JULY 1, 1953, THE PURCHASING AND CONTRACTING OFFICER STATES THAT THE COMPANY'S BID ON BUILDING T-729 WAS VERY LOW IN COMPARISON TO OTHER BIDS AND WAS $506 BELOW THE GOVERNMENT'S ESTIMATE; THAT A STUDY OF THE COMPANY'S WORK SHEET INDICATED NO ERASURES OR OTHER CORRECTIONS; AND THAT, SINCE THE COMPANY WAS WILLING TO ACCEPT AWARD OF THE CONTRACT IN THE AMOUNT OF $6,790, SUBJECT TO CORRECTION IF AUTHORIZED BY THE GENERAL ACCOUNTING OFFICE, THE CONTRACT WAS AWARDED TO THE COMPANY ON THAT BASIS. ALSO, IN THE LETTER OF SEPTEMBER 8, 1953, THE PURCHASING AND CONTRACTING OFFICER STATES THAT THE DIMENSIONS OF BUILDING T-729 ARE 100 X 200 X 20, AMOUNTING TO 120 SQUARES.

THE ABSTRACT OF BIDS SHOWS THAT WITH RESPECT TO BUILDING T-729 THAT FOUR OF THE FIVE OTHER BIDS THEREON RANGED FROM $1,495.48 TO $2,377 AND THAT THE HIGH BID WAS $3,070. THE GOVERNMENT'S ESTIMATE OF THE COST WAS $1,200.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS LITTLE, IF ANY, DOUBT THAT THE COMPANY MADE A MISTAKE IN ITS BID, AS ALLEGED, AND THAT THE INTENDED BID ON BUILDING T-729 WAS $1,110. ACCORDINGLY, SINCE PRIOR TO AWARD, THE ERROR WAS ALLEGED AND SATISFACTORY EVIDENCE FURNISHED IN SUPPORT THEREOF, THE CONTRACT MAY BE AMENDED TO INCREASE THE CONSIDERATION SPECIFIED THEREIN FOR THE COMPLETE JOB FROM $6,790 TO $7,206, WHICH AMOUNT IS STILL LOWER THAN THE NEXT LOWEST BID.

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

THE PAPERS WITH THE EXCEPTION OF THE COMPANY'S LETTERS OF JUNE 30 AND SEPTEMBER 3, 1953, AND ITS WORK SHEET, ARE FORWARDED HEREWITH.