B-124541, JUL. 11, 1955

B-124541: Jul 11, 1955

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

DEPARTMENT OF THE INTERIOR: REFERENCE IS MADE TO YOUR LETTER OF JUNE 27. 646.90 WAS LOW. 114.90 WERE RECEIVED. WAS IN ERROR. OTHER BIDS ON THIS ITEM WERE IN THE AMOUNT OF $48. THIS STATEMENT IS SUBSTANTIATED BY THE CONTENTS OF ITS WORK PAPERS WHICH SHOW THAT THE TWO IDENTIFIED SUBITEMS WERE NOT COMBINED. SINCE THE MISTAKE WAS ALLEGED PRIOR TO AWARD. SINCE RECTIFICATION OF THE ERROR WILL NOT CAUSE THE NEXT LOWEST QUOTATION TO BE EXCEEDED. YOU ARE AUTHORIZED TO CORRECT AND ACCEPT THE BID ON THE VEGA ENGINEERING AND GRADING COMPANY.

B-124541, JUL. 11, 1955

TO MR. L. N. MCCLELLAN, CONTRACING OFFICER, BUREAU OF RECLAMATION, DEPARTMENT OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 27, 1955, SUBMITTING FOR DECISION AN ALLEGATION BY THE VEGA ENGINEERING AND GRADING COMPANY THAT IT ERRED IN BIDDING ON SPECIFICATIONS NO. DC-4411 FOR THE CONSTRUCTION OF EARTHWORK, CONCRETE LINING AND STRUCTURES FOR THE TEXAS HILL CANAL AND DISTRIBUTION SYSTEM, WELLTON-MOHAWK DIVISION, GILA PROJECT, ARIZONA, OPENED ON JUNE 9, 1955.

THE RECORD SHOWS THAT THE INVITATION CONTAINED 92 ITEMS OF WORK, SOME INCLUDING MATERIALS AND EQUIPMENT, FOR AWARD AS AN ENTIRETY. THE VEGA BID IN THE AMOUNT OF $1,519,646.90 WAS LOW, AND OTHER BIDS OF $1,671,681.55, $1,724,304.25 AND $1,808,114.90 WERE RECEIVED. ON JUNE 16, PRIOR TO AWARD OF A CONTRACT, VEGA ASSERTED THAT ITS BID OF $10,000 ON ITEM NO. 58, COVERING BOTH THE FURNISHING AND INSTALLING OF SEVEN MOTOR DRIVEN PUMPING UNITS, WAS IN ERROR. OTHER BIDS ON THIS ITEM WERE IN THE AMOUNT OF $48,750, $60,300 AND $56,256, RESPECTIVELY.

IN EXPLANATION, VEGA HAS STATED UNDER OATH THAT IT FAILED TO ADD $35,200, THE COST OF THE PUMPS REQUIRED TO BE FURNISHED, TO ITS INSTALLATION COST ESTIMATE OF $10,000. THIS STATEMENT IS SUBSTANTIATED BY THE CONTENTS OF ITS WORK PAPERS WHICH SHOW THAT THE TWO IDENTIFIED SUBITEMS WERE NOT COMBINED, AND BY COPY OF AN OFFICER RECEIVED FROM ITS SUPPLIER, FAIRBANKS, MORSE AND CO., DATED JUNE 7, 1955, QUOTING A TOTAL PRICE FOR THE SEVEN PUMPS, FREIGHT ALLOWED TO JOB SITE, OF $35,200.

ALSO, YOU ADVISE THAT---

"FROM MY FAMILIARITY WITH THE GENERALLY PREVAILING MARKET PRICES IN THE CONCERNED AREAS FOR THE LABOR AND MATERIALS TO BE PERFORMED AND FURNISHED UNDER THE TOTAL SCHEDULE AND ALSO UNDER ITEM 58, AND FROM THE PRICES QUOTED BY THE OTHER BIDDERS AS REVEALED IN THE ABSTRACT, I FIND NO REASON TO DOUBT THE TRUTH OF THE BIDDERS ALLEGATIONS THAT HE ERRED IN QUOTING THE $10,000 PRICE OR THAT HE INTENDED TO QUOTE A PRICE OF $45,200 FOR THAT ITEM.'

SINCE THE MISTAKE WAS ALLEGED PRIOR TO AWARD, SINCE ITS NATURE AND EXTENT HAS BEEN CLEARLY ESTABLISHED, AND SINCE RECTIFICATION OF THE ERROR WILL NOT CAUSE THE NEXT LOWEST QUOTATION TO BE EXCEEDED, YOU ARE AUTHORIZED TO CORRECT AND ACCEPT THE BID ON THE VEGA ENGINEERING AND GRADING COMPANY.