B-125723, OCT. 27, 1955

B-125723: Oct 27, 1955

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NATIONAL CAPITAL HOUSING AUTHORITY: REFERENCE IS MADE TO A LETTER DATED OCTOBER 7. IT IS STATED IN THE LETTER OF OCTOBER 7. THAT NOTICE WAS TAKEN OF THE PROBABILITY THAT THE COMPANY HAD MADE AN ERROR IN ITS BID OF $881.40. SINCE THE BID WAS OUT OF LINE WITH THE ONLY OTHER BID OF $1. SINCE THE GOVERNMENT'S ESTIMATE WAS $1. ERROR WAS APPARENT ON THE FACE OF THE BID SINCE THE UNIT PRICE OF $2.90 MULTIPLIED BY 226. UPON BEING REQUESTED TO VERIFY THE BID THE COMPANY ADVISED THAT A MISTAKE WAS MADE IN THAT THE COST OF THE WEATHERSTRIPPING MATERIAL WAS COMPUTED IN ITS BID ON THE BASIS OF $0.22 PER DOOR INSTEAD OF $0.22 PER FOOT AND THAT IF NOT FOR THE ERROR. THE AMOUNT OF ITS BID WOULD HAVE BEEN $109.44 HIGHER.

B-125723, OCT. 27, 1955

TO HONORABLE SAMUEL SPENCER, CHAIRMAN, NATIONAL CAPITAL HOUSING AUTHORITY:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 7, 1955, WITH ENCLOSURES, FROM THE OFFICE OF THE EXECUTIVE DIRECTOR, NATIONAL CAPITAL HOUSING AUTHORITY, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN--- IN VIEW OF THE BIDDER'S ALLEGATION OF ERROR--- WITH RESPECT TO AN UNDATED BID SUBMITTED BY THE ACE HOME IMPROVEMENT COMPANY IN RESPONSE TO AN UNNUMBERED INVITATION DATED AUGUST 30, 1955.

IT IS STATED IN THE LETTER OF OCTOBER 7, THAT NOTICE WAS TAKEN OF THE PROBABILITY THAT THE COMPANY HAD MADE AN ERROR IN ITS BID OF $881.40, SINCE THE BID WAS OUT OF LINE WITH THE ONLY OTHER BID OF $1,695, AND SINCE THE GOVERNMENT'S ESTIMATE WAS $1,000 FOR THE WORK. MOREOVER, ERROR WAS APPARENT ON THE FACE OF THE BID SINCE THE UNIT PRICE OF $2.90 MULTIPLIED BY 226, THE QUANTITY OF ENTRANCE DOORS INVOLVED, DOES NOT EQUAL $881.40 AS EXTENDED TO THE AMOUNT COLUMN BY THE BIDDER.

UPON BEING REQUESTED TO VERIFY THE BID THE COMPANY ADVISED THAT A MISTAKE WAS MADE IN THAT THE COST OF THE WEATHERSTRIPPING MATERIAL WAS COMPUTED IN ITS BID ON THE BASIS OF $0.22 PER DOOR INSTEAD OF $0.22 PER FOOT AND THAT IF NOT FOR THE ERROR, THE AMOUNT OF ITS BID WOULD HAVE BEEN $109.44 HIGHER, OR $990.84 INSTEAD OF $881.40.

IT HAS BEEN ADMINISTRATIVELY REPORTED THAT ALL THE DOORS INVOLVED ARE THREE FEET WIDE. CONSISTENT WITH THE REPORTED DOOR SIZE THE COMPANY, BY ITS LETTER OF OCTOBER 14, 1955, STATES THAT ITS REQUESTED INCREASE IN THE AMOUNT OF ITS BID IS BASED ON AN ADDITIONAL $0.44 PER DOOR, WHICH INADVERTENTLY WAS OMITTED IN COMPUTING ITS BID PRICE. WHILE THERE IS OF RECORD NO EXPLANATION OF THE MISTAKE RESULTING IN THE INCONSISTENCY BETWEEN THE UNIT BID PRICE OF $2.90 AND THE EXTENSION TO THE AMOUNT COLUMN AS $881.40, THE BIDDER'S UNVERIFIED WORKSHEET CLEARLY INDICATES THAT THE ERROR WAS IN THE UNIT PRICE QUOTED. THE WORKSHEET ALSO SHOWS THAT THE COST OF THE BRASS AND FELT DOOR BOTTOMS WAS CALCULATED IN THE TOTAL BID PRICE AT $0.22 PER DOOR INSTEAD OF $0.22 CENTS PER FOOT, OR $0.66 PER 3- FOOT DOOR, NOW CLAIMED TO BE CORRECT. ALTHOUGH COPIES OF ITS SUPPLIER'S QUOTATIONS RECEIVED BY TELEGRAM DATED SEPTEMBER 7, 1955, SUBSTANTIATE ITS ALLEGATIONS THAT A CHARGE FOR THE DOOR BOTTOMS OF $0.22 PER FOOT, INSTEAD OF PER DOOR, SHOULD HAVE BEEN INCLUDED IN ITS BID PRICE AS THE COMPANY CONTENDS, ITS INTENDED BID PRICE HAS NOT BEEN ESTABLISHED CONCLUSIVELY TO BE AS ALLEGED.

THUS, ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD THERE IS NO DOUBT THAT A BONA FIDE ERROR WAS MADE BY THE COMPANY IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE IT WAS BELIEVED THE BID WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED BY THE COMPANY PRIOR TO AWARD, THE BID OF THE ACE HOME IMPROVEMENT COMPANY SHOULD BE DISREGARDED--- THE FACTS AND CIRCUMSTANCES IN THE CASE NOT BEING SUCH AS TO WARRANT A DEPARTURE FROM THE BASIC RULE THAT BIDS MAY NOT BE CHANGED AFTER OPENING. SEE 17 COMP. GEN. 575.

SINCE IT IS STATED THAT THE OTHER BID APPEARS TO BE TOO HIGH, A REJECTION THEREOF AND READVERTISING FOR BIDS WOULD APPEAR TO BE IN THE INTEREST OF THE GOVERNMENT.