B-120597, JUL 19, 1954

B-120597: Jul 19, 1954

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PRECIS-UNAVAILABLE THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER OF JUNE 30. TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. 40-606-54 19. BIDS WERE REQUESTED FOR COMPLETE CONSTRUCTION OF A CONCRETE BLOCK BUILDING. THE BIDS WERE OPENED AT 2:30 P.M. ORALLY ALLEGED THAT THE COMPANY HAD MADE AN ERROR IN ITS BID AND THAT AWARD WAS MADE ON THAT COMPANY'S BID AT APPROXIMATELY 2 P.M. THE COMPANY'S WORKSHEET ESTABLISHES THE ALLEGATION OF ERROR AND THAT BUT FOR THE ERROR THE COMPANY'S BID PRICE WOULD HAVE BEEN $1. SINCE THE ERROR WAS ALLEGED PRIOR TO AWARD AND SINCE THE CORRECTED BID PRICE WILL STILL BE LOWER THAN THE NEXT LOW BID. THE COPY OF THE CONTRACTOR'S WORKSHEET ARE RETURNED HEREWITH.

B-120597, JUL 19, 1954

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO A LETTER OF JUNE 30, 1954, FROM HEADQUARTERS, 516TH AIR DEFENSE GROUP, MCGHEE-TYSON AIRPORT, KNOXVILLE, TENNESSEE, RELATIVE TO AN ERROR ALLEGED BY PRUITT-HEADRICK, CONTRACTORS, TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. 40-606-54 19, DATED JUNE 14, 1954.

BY THE INVITATION REFERRED TO, BIDS WERE REQUESTED FOR COMPLETE CONSTRUCTION OF A CONCRETE BLOCK BUILDING, GAS STATION AT THE 516TH AIR DEFENSE GROUP, MCGHEE-TYSON AIRPORT, KNOXVILLE, TENNESSEE, IN ACCORDANCE WITH THE SPECIFICATIONS AND DRAWINGS THEREWITH. IN RESPONSE TO THE INVITATION, PRUITT-HEADRICK, CONTRACTORS, SUBMITTED A BID OFFERING THE COMPLETE JOB FOR $5,853.55. THE ABSTRACTS OF BIDS SHOW THAT THE FIVE OTHER BIDS RANGED FROM $9,525 TO $13,849. THE BIDS WERE OPENED AT 2:30 P.M. ON JUNE 24, 1954. THE CONTRACTING OFFICER HAS REPORTED THAT AT 9 A.M. ON JUNE 25, 1954, A REPRESENTATIVE OF PRUITT HEADRICK, CONTRACTORS, ORALLY ALLEGED THAT THE COMPANY HAD MADE AN ERROR IN ITS BID AND THAT AWARD WAS MADE ON THAT COMPANY'S BID AT APPROXIMATELY 2 P.M. ON THE SAME DATE.

IN A LETTER OF JUNE 26, 1954, PRUITT-HEADRICK, CONTRACTORS, ALLEGED THAT ITS BID PRICE INCLUDED THE COST OF ONLY ONE GASOLINE STORAGE TANK AND ONE DISPENSING PUMP, WHEREAS THE SPECIFICATIONS REQUIRED TWO EACH OF SUCH ITEMS, AND REQUESTED THAT THE CONTRACT PRICE BE INCREASED TO $7,224.50. THE COMPANY FURNISHED THE WORKSHEET USED IN COMPUTING ITS BID PRICE WHICH SHOWS ITEMS OF $1,370.95 TO COVER "1 TANK, 1 PUMP" AND $400 TO COVER "LABOR ON TANKS AND PUMPS." THUS, THE COMPANY'S WORKSHEET ESTABLISHES THE ALLEGATION OF ERROR AND THAT BUT FOR THE ERROR THE COMPANY'S BID PRICE WOULD HAVE BEEN $1,370.95 MORE THAN THE PRICE ACTUALLY QUOTED.

ACCORDINGLY, SINCE THE ERROR WAS ALLEGED PRIOR TO AWARD AND SINCE THE CORRECTED BID PRICE WILL STILL BE LOWER THAN THE NEXT LOW BID, THE CONTRACT MAY BE AMENDED TO SHOW THE PRICE AS $7,224.50.

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

THE PAPERS, WITH THE EXCEPTION OF THE STATEMENT DATED JUNE 30, 1954, BY THE CONTRACTING OFFICER, AND THE COPY OF THE CONTRACTOR'S WORKSHEET ARE RETURNED HEREWITH.