B-116626, AUG 25, 1953

B-116626: Aug 25, 1953

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PRECIS-UNAVAILABLE THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO LETTER OF AUGUST 12. TO HAVE BEEN MADE IN ITS BID. ARE AUTHORIZED TO SUBMIT QUESTIONS TO THE COMPTROLLER GENERAL OF THE UNITED STATES FOR DECISION. THE DECISION IS BEING RENDERED TO YOU IN THIS INSTANCE. WAS NOT FORWARDED HERE BUT IT APPEARS FROM THE ABSTRACT OF BIDS THAT THE CORPORATION OFFERED TO PERFORM THE WORK FOR THE LUMP SUM OF $98. IT WAS STATED THAT A REPRESENTATIVE FROM THE JACK STONE COMPANY. WAS PRESENT AT THE BID OPENING AND THAT IMMEDIATELY AFTER THE READING OF THE BIDS HE REQUESTED PERMISSION TO VERIFY THE CORPORATION'S BID WHICH WAS GRANTED. THIS REQUEST IS MADE ON THE BASIS OF OUR FAILURE TO INCLUDE ON OUR SUMMARY SHEET IMPORTANT LABOR AND MATERIAL ITEMS FROM OUR INDIVIDUAL BREAKDOWN SHEETS.

B-116626, AUG 25, 1953

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO LETTER OF AUGUST 12, 1953, WITH ENCLOSURES, FROM LUCRETIA P. WHITE, CONTRACTING OFFICER, 1401ST AIR BASE WING, MILITARY AIR TRANSPORT SERVICE, ANDREWS AIR FORCE BASE, WASHINGTON, D. C., REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY THE JACK STONE COMPANY, INC., TO HAVE BEEN MADE IN ITS BID.

UNDER EXISTING LAW ONLY DISBURSING OFFICERS, CERTAIN CERTIFYING OFFICERS, AND THE HEAD OF ANY EXECUTIVE DEPARTMENT, OR OTHER ESTABLISHMENT NOT UNDER ANY OF THE EXECUTIVE DEPARTMENTS, ARE AUTHORIZED TO SUBMIT QUESTIONS TO THE COMPTROLLER GENERAL OF THE UNITED STATES FOR DECISION. SEE 26 COMP. GEN. 993; AND 28 ID. 401. HOWEVER, SINCE A PROMPT DECISION APPEARS NECESSARY, THE DECISION IS BEING RENDERED TO YOU IN THIS INSTANCE.

THE PROCUREMENT AND CONTRACTING OFFICE, ANDREWS AIR FORCE BASE, WASHINGTON, D. C., BY INVITATION NO. 49-608-54-1 REQUESTED BIDS - TO BE OPENED AUGUST 10, 1953 - FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK REQUIRED FOR THE CONSTRUCTION OF AN UNDERGROUND TELEPHONE CONDUIT SYSTEM AT SAID BASE IN ACCORDANCE WITH THE GOVERNMENT'S SPECIFICATIONS AND DRAWINGS. THE BID OF THE JACK STONE COMPANY, INC., WAS NOT FORWARDED HERE BUT IT APPEARS FROM THE ABSTRACT OF BIDS THAT THE CORPORATION OFFERED TO PERFORM THE WORK FOR THE LUMP SUM OF $98,945.

IN THE LETTER OF AUGUST 12, 1953, IT WAS STATED THAT A REPRESENTATIVE FROM THE JACK STONE COMPANY, INC., WAS PRESENT AT THE BID OPENING AND THAT IMMEDIATELY AFTER THE READING OF THE BIDS HE REQUESTED PERMISSION TO VERIFY THE CORPORATION'S BID WHICH WAS GRANTED. BY LETTER DATED AUGUST 11, 1953, THE JACK STONE COMPANY, INC., ADVISED THAT -

"SUBJECT: BID 'CONSTRUCTION OF UNDERGROUND TELEPHONE

CONDUIT SYSTEM', SERIAL NO. 49-608-54-1

10 AUGUST 1953

"WE HEREBY REQUEST PERMISSION TO WITHDRAW OUR BID ON THE SUBJECT CONTRACT. THIS REQUEST IS MADE ON THE BASIS OF OUR FAILURE TO INCLUDE ON OUR SUMMARY SHEET IMPORTANT LABOR AND MATERIAL ITEMS FROM OUR INDIVIDUAL BREAKDOWN SHEETS; NAMELY,

PAGE 2 MATERIAL $23,800.00

PAGE 2 LABOR HOURS 3060

PAGE 2A MATERIAL $28,660.00

"THE WORK SHEETS ARE SUBMITTED FOR YOUR REVIEW.

THE ADDITION OF THE ABOVE ITEMS TOGETHER WITH THE PERCENTAGE MARK-UP PATTERN WOULD HAVE INCREASED OUR BID FROM $98,945.00 TO $166,585.75 AS INDICATED BY THE CORRECTED SUMMARY SHEET WHICH IS ENCLOSED.

"WE REGRET THAT THIS ACTION IS NECESSARY. SUCH IS WITHOUT PRECEDENT IN THE HISTORY OF THIS COMPANY.

"WE TRUST THAT YOU WILL FAVOR THIS REQUEST."

IN SUPPORT OF ITS ALLEGATION OF ERROR, THE CORPORATION SUBMITTED PHOTOSTATIC COPIES OF THE SUMMARY ESTIMATE SHEET AND CERTAIN OTHER ESTIMATE SHEETS USED IN THE COMPUTATION OF ITS BID. IT IS APPARENT FROM AN EXAMINATION OF SAID ESTIMATE SHEETS THAT CERTAIN LABOR AND MATERIAL ITEMS LISTED ON THE DETAILED ESTIMATE SHEETS WERE OMITTED FROM THE SUMMARY ESTIMATE SHEET, AS ALLEGED. ALSO, THE ABSTRACT OF BIDS SHOWS THAT THE BID OF THE CORPORATION IS $56,055 LESS THAN THE NEXT LOW BID.

THERE APPEARS LITTLE, IF ANY, DOUBT THAT THE JACK STONE COMPANY, INC., MADE AN ERROR IN ITS BID, AS ALLEGED. HOWEVER, IF THE BID BE CORRECTED TO REFLECT THE CORPORATION'S INTENDED BID PRICE, IT WOULD NOT BE THE LOWEST BID RECEIVED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED PRIOR TO AWARD, THE BID OF THE JACK STONE COMPANY, INC., SHOULD BE DISREGARDED IN MAKING THE AWARD.

THE PAPERS ARE FORWARDED HEREWITH.