B-120051, JUL 2, 1954

B-120051: Jul 2, 1954

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PRECIS-UNAVAILABLE THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED MAY 10. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY CENTRAL PAINT SERVICE TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. IS BASED. THE CONTRACTING OFFICER IS NOT ENTITLED TO A DECISION. THE DECISION IS BEING ADDRESSED TO YOU. THE CONTRACTING OFFICER HAS STATED THAT THE COST OF APPLYING THE THIRD COAT OF PAINT IS ESTIMATED TO BE $38. THE FIGURES FURNISHED BY THE CONTRACTOR SHOW THAT HIS COST FOR THE THIRD COAT WILL BE $33. SINCE THE ERROR WAS ALLEGED AND SATISFACTORY EVIDENCE FURNISHED IN SUPPORT THEREOF PRIOR TO AWARD - WHICH AWARD WAS SUBJECT TO CORRECTION BY THE GENERAL ACCOUNTING OFFICE - THE CONTRACT MAY BE AMENDED TO INCREASE THE CONSIDERATION SPECIFIED THEREIN FOR THE COMPLETE JOB BY AN AMOUNT NOT TO EXCEED $33.

B-120051, JUL 2, 1954

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER DATED MAY 10, 1954, AND ENCLOSURES, FROM CAPTAIN WALTER A. BROWN, JR., CONTRACTING OFFICER, 5010TH COMPOSITE WING, EIELSON AIR FORCE BASE, ALASKA, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY CENTRAL PAINT SERVICE TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. AF 65(503)-205, DATED APRIL 23, 1954, 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 DECISION APPEARS NECESSARY, THE DECISION IS BEING ADDRESSED TO YOU.

THE CENTRAL PAINT SERVICE BID $106,513.32 AND THE FOUR OTHER BIDS RECEIVED RANGED FROM $149,420 TO $163,842. IN VIEW OF THE WIDE VARIANCE BETWEEN THE LOW BID AND THE OTHER BIDS, THE CONTRACTING OFFICER REQUESTED THE LOW BIDDER TO VERIFY ITS BID. UPON THE BASIS OF THE EVIDENCE FURNISHED PURSUANT TO SUCH REQUEST, THERE APPEARS NO ROOM FOR DOUBT THAT THE COMPANY MADE A BONA FIDE ERROR IN ITS BID IN THAT IT DID NOT TAKE INTO CONSIDERATION THE COST OF APPLYING A THIRD COAT OF PAINT TO THE BUILDINGS. THE CONTRACTING OFFICER HAS STATED THAT THE COST OF APPLYING THE THIRD COAT OF PAINT IS ESTIMATED TO BE $38,811. THE FIGURES FURNISHED BY THE CONTRACTOR SHOW THAT HIS COST FOR THE THIRD COAT WILL BE $33,986.68. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND SATISFACTORY EVIDENCE FURNISHED IN SUPPORT THEREOF PRIOR TO AWARD - WHICH AWARD WAS SUBJECT TO CORRECTION BY THE GENERAL ACCOUNTING OFFICE - THE CONTRACT MAY BE AMENDED TO INCREASE THE CONSIDERATION SPECIFIED THEREIN FOR THE COMPLETE JOB BY AN AMOUNT NOT TO EXCEED $33,986.68 OR FROM $106,513.32 TO AN AMOUNT NOT TO EXCEED $140,500, WHICH AMOUNT IS STILL LOWER THAN THE NEXT LOWEST BID. HOWEVER, THE CONTRACTOR SHOULD BE REQUIRED TO ESTABLISH HIS COST FOR THE THIRD COAT OF PAINT PRIOR TO THE PAYMENT OF ANY PART THEREOF.

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

THE PAPERS, WITH THE EXCEPTION OF THE COPY OF THE COMPANY'S LETTER OF APRIL 26, 1954, ITS WORKSHEETS, AND THE ABSTRACT OF BIDS, ARE FORWARDED HEREWITH.