B-125415, SEP. 16, 1955

B-125415: Sep 16, 1955

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 1. THE BID OF THE CORPORATION WAS NOT ACCOMPANIED BY A BID BOND BUT THE BID CONTAINED THE NOTATION. "WE CAN AND WILL SUPPLY A FULL BOND FOR THE AMOUNT OF CONTRACT FROM THE CONTINUAL INSURANCE CO OF AMERICA.'. 3 WERE IN AMOUNTS RANGING FROM $81. THAT THE GOVERNMENT'S ESTIMATE FOR THE WORK WAS $97. 3 IS OUT OF LINE WITH THE OTHER AGGREGATE BIDS AND WITH THE GOVERNMENT'S ESTIMATE. IT IS APPARENT FROM THE DIFFERENCE BETWEEN ITS BID AND THE OTHER BIDS THAT THE CORPORATION COULD NOT PROPERLY PERFORM THE REQUIRED WORK AT ITS BID PRICE.

B-125415, SEP. 16, 1955

TO MR. F. M. CLINTON, CONTRACTING OFFICER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 1, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN REGARDING AN ERROR THE UTILITY CLEARING SERVICE, INC., APPLETON, WISCONSIN, ALLEGES IT MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION FOR BIDS ON SPECIFICATIONS NO. 600 C-171.

BY THE REFERRED-TO INVITATION, THE BUREAU OF RECLAMATION REQUESTED BIDS-- - TO BE OPENED ON AUGUST 2, 1955--- FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK FOR CLEARING THE TIBER RESERVOIR AREA, LOWER MARIAS UNIT, MONTANA, AS SPECIFIED UNDER SCHEDULES 1, 2, AND 3. IN RESPONSE, THE UTILITY CLEARING SERVICE, INC., SUBMITTED A BID DATED JULY 25, 1955, OFFERING TO PERFORM THE WORK DESCRIBED UNDER EACH OF THE THREE SCHEDULES AT THE PRICES SPECIFIED OR FOR AN AGGREGATE TOTAL PRICE OF $51,619. THE BID OF THE CORPORATION WAS NOT ACCOMPANIED BY A BID BOND BUT THE BID CONTAINED THE NOTATION,"WE CAN AND WILL SUPPLY A FULL BOND FOR THE AMOUNT OF CONTRACT FROM THE CONTINUAL INSURANCE CO OF AMERICA.'

BY TELEGRAM DATED AUGUST 10, 1955, THE UTILITY CLEARING SERVICE, INC., ADVISED AS FOLLOWS:

"IMPOSSIBLE TO GO THROUGH WITH CONTRACT. ERROR IN OUR FIGURES SHOWS WE WOULD SUSTAIN A HUGE LOSS.'

ALSO IN ANOTHER TELEGRAM, THE CORPORATION ADVISED AS FOLLOWS:

"UNABLE TO FULFILL CONTRACT AT THIS TIME. REQUEST THAT YOU DISREGARD OUR BID.'

THE ABSTRACT OF BIDS SHOWS THAT THE NINE OTHER AGGREGATE BIDS ON SCHEDULES 1, 2, AND 3 WERE IN AMOUNTS RANGING FROM $81,430 TO $498,470, AND THAT THE GOVERNMENT'S ESTIMATE FOR THE WORK WAS $97,600. THUS, THE AGGREGATE BID OF THE UTILITY CLEARING SERVICE, INC., OF $51,619 FOR THE WORK COVERED BY SCHEDULES 1, 2, AND 3 IS OUT OF LINE WITH THE OTHER AGGREGATE BIDS AND WITH THE GOVERNMENT'S ESTIMATE.

ALTHOUGH THE CORPORATION HAS NOT FURNISHED ANY EVIDENCE IN SUPPORT OF ITS ALLEGATION OF ITS ERROR, IT IS APPARENT FROM THE DIFFERENCE BETWEEN ITS BID AND THE OTHER BIDS THAT THE CORPORATION COULD NOT PROPERLY PERFORM THE REQUIRED WORK AT ITS BID PRICE. ACCORDINGLY, THE BID OF THE UTILITY CLEARING SERVICE, INC., SHOULD BE DISREGARDED IN MAKING THE AWARD.