B-124512, JUL. 22, 1955

B-124512: Jul 22, 1955

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TO THE HONORABLE SECRETARY OF THE ARMY: REFERENCE IS MADE TO YOUR LETTER OF JUNE 28. RELATIVE TO AN ERROR WHICH WACO IRON WORKS ALLEGES WAS MADE ON ITEM NO. 1 OF ITS BID DATED APRIL 29. WAS BASED. BIDS WERE REQUESTED FOR THE RENOVATING AND REMODELING OF THREE BACHELOR OFFICER'S QUARTERS AT CAMP RUCKER. THE FOUR BIDS RECEIVED ON ITEM NO. 1 WERE $57. THE BID ON ITEM NO. 1 WOULD HAVE BEEN $74. SINCE THE ERROR WAS ALLEGED PRIOR TO AWARD AND SATISFACTORY EVIDENCE FURNISHED IN SUPPORT THEREOF AND OF THE INCREASE REQUESTED. WHICH PRICE IS STILL LESS THAN ANY OTHER BID RECEIVED. ARE RETURNED.

B-124512, JUL. 22, 1955

TO THE HONORABLE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 28, 1955, WITH ENCLOSURES, RELATIVE TO AN ERROR WHICH WACO IRON WORKS ALLEGES WAS MADE ON ITEM NO. 1 OF ITS BID DATED APRIL 29, 1955, ON WHICH CONTRACT NO. DA 01-044 AIII-186, DATED MAY 9, 1955, WAS BASED. YOUR REQUEST A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO THE CONTRACTOR'S REQUEST FOR AN INCREASE IN THE CONTRACT PRICE ON THAT ITEM FROM $57,829 TO $74,731.84.

BY INVITATION NO. 01-044-55-103 DATED APRIL 8, 1955, BIDS WERE REQUESTED FOR THE RENOVATING AND REMODELING OF THREE BACHELOR OFFICER'S QUARTERS AT CAMP RUCKER, ALABAMA. THE FOUR BIDS RECEIVED ON ITEM NO. 1 WERE $57,829, $76,727, $96,404 AND $113,250. BY LETTER OF APRIL 30, 1955, THE DAY AFTER THE OPENING OF BIDS, THE WACO IRON WORKS ADVISED OF AN ERROR IN ITS BID OF $57,829 IN THAT, AFTER COMPUTING THE COST OF SEVERAL ITEMS OF CONSTRUCTION APPLICABLE TO EACH OF THE THREE BUILDINGS INVOLVED, IT INADVERTENTLY INCLUDED IN THE CALCULATION OF ITS BID PRICE ONLY THE COST APPLICABLE TO ONE BUILDING INSTEAD OF THREE, AS VERIFIED BY THE CERTIFIED COPY OF THE BIDDER'S RECAPITULATION SHEET LISTING THE ITEMS OF COSTS INCLUDED IN ITS BID.

THE FACTS AND EVIDENCE OF RECORD CONFIRM THE BIDDER'S ALLEGATION OF ERROR AND REASONABLY ESTABLISHES THAT, IF NOT FOR THE ERROR, THE BID ON ITEM NO. 1 WOULD HAVE BEEN $74,731.84, INSTEAD OF $57,829.

ACCORDINGLY, SINCE THE ERROR WAS ALLEGED PRIOR TO AWARD AND SATISFACTORY EVIDENCE FURNISHED IN SUPPORT THEREOF AND OF THE INCREASE REQUESTED, THE CONTRACT MAY BE AMENDED, AS RECOMMENDED BY THE CONTRACTING OFFICER, TO PROVIDE FOR A PRICE OF $74,731.84 ON ITEM NO. 1, WITH A CORRESPONDING INCREASE IN THE TOTAL CONTRACT PRICE, WHICH PRICE IS STILL LESS THAN ANY OTHER BID RECEIVED.

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

THE PAPERS, WITH THE EXCEPTION OF THE COPY OF THE CONTRACTING OFFICER'S FINDING OF FACT DATED MAY 12, 1955, AND THE SIGNED COPY OF THE CONTRACTOR'S LETTER OF APRIL 30, 1955, WITH ENCLOSURES, ARE RETURNED.