B-124049, JUN. 20, 1955

B-124049: Jun 20, 1955

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TO THE HONORABLE SECRETARY OF THE ARMY: REFERENCE IS MADE TO YOUR LETTER DATED MAY 19. REQUESTING A DECISION AS TO WHETHER THERE MAY BE GRANTED THE INCREASE IN CONTRACT PRICE SOUGHT BY THE QUISLE CONSTRUCTION COMPANY IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE COMPANY'S BID ON WHICH CONTRACT NO. DA-41-443-ENG-4547 WAS AWARDED. 816.32 OF THE QUISLE CONSTRUCTION COMPANY WAS ONLY APPROXIMATELY $3. WAS SO OUT OF LINE WITH THE FOUR OTHER BIDS RECEIVED. WHILE AN ERROR MAY HAVE BEEN MADE BY THE COMPANY IN ITS BID. WAS MADE IN GOOD FAITH AND GAVE RISE TO A VALID CONTRACT CONFERRING RIGHTS AND OBLIGATIONS UPON THE CONTRACTING PARTIES WHICH NEITHER THIS OFFICE NOR ANY OTHER OFFICER OF THE GOVERNMENT IS AUTHORIZED TO VARY TO THE DETRIMENT OF THE UNITED STATES WITHOUT ADEQUATE CONSIDERATION.

B-124049, JUN. 20, 1955

TO THE HONORABLE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 19, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER THERE MAY BE GRANTED THE INCREASE IN CONTRACT PRICE SOUGHT BY THE QUISLE CONSTRUCTION COMPANY IN VIEW OF AN ERROR ALLEGED TO HAVE BEEN MADE IN THE COMPANY'S BID ON WHICH CONTRACT NO. DA-41-443-ENG-4547 WAS AWARDED.

THE RECORD SHOWS THAT THE BID OF $64,816.32 OF THE QUISLE CONSTRUCTION COMPANY WAS ONLY APPROXIMATELY $3,800 LESS THAN THE GOVERNMENT'S ESTIMATE FOR THE WORK. MOREOVER, IT REASONABLY MAY NOT BE CONCLUDED THAT THE COMPANY'S BID, WHICH COVERED SUBSTANTIAL CONSTRUCTION WORK, WAS SO OUT OF LINE WITH THE FOUR OTHER BIDS RECEIVED, RANGING FROM $79,492 TO $92,787.28, AS TO CONSTITUTE NOTICE TO THE CONTRACTING OFFICER OF THE PROBABILITY OF AN ERROR IN THE BID OF THE QUISLE CONSTRUCTION COMPANY. WHILE AN ERROR MAY HAVE BEEN MADE BY THE COMPANY IN ITS BID, AS ALLEGED, THE ACCEPTANCE OF THE BID, PRIOR TO THE ALLEGATION OF ERROR, WAS MADE IN GOOD FAITH AND GAVE RISE TO A VALID CONTRACT CONFERRING RIGHTS AND OBLIGATIONS UPON THE CONTRACTING PARTIES WHICH NEITHER THIS OFFICE NOR ANY OTHER OFFICER OF THE GOVERNMENT IS AUTHORIZED TO VARY TO THE DETRIMENT OF THE UNITED STATES WITHOUT ADEQUATE CONSIDERATION.

ACCORDINGLY, THERE APPEARS TO BE NO LEGAL BASIS FOR INCREASING THE CONSIDERATION SPECIFIED IN THE CONTRACT OR OTHERWISE RELIEVING THE QUISLE CONSTRUCTION COMPANY FROM THE TERMS OF ITS ACCEPTED BID.

THE PAPERS, WITH THE EXCEPTION OF THE MEMORANDUM OF THE CONTRACTING OFFICER DATED APRIL 22, 1955, ARE RETURNED HEREWITH.