B-125991, DEC. 27, 1955

B-125991: Dec 27, 1955

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TO THE HONORABLE SECRETARY OF THE ARMY: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 3. DA-95-515-ASK-465 IS BASED. IS ALSO ACKNOWLEDGED. THE WORK WAS TO COMMENCE ON JUNE 9. IN AN UNDATED REPORT FROM THE CONTRACTING OFFICER IT WAS STATED THAT PRIOR TO AWARD THE DAULT AND THOMAS COMPANY ADVISED BY TELEPHONE THAT AN ERROR OF $650 HAD BEEN MADE IN ITS BID IN THAT IT HAD UNDERESTIMATED THE AMOUNT OF CONCRETE REQUIRED FOR THE JOB BY 25 CUBIC YARDS. THE BID OF THE DAULT AND THOMAS COMPANY WAS ACCEPTED ON THE BASIS OF ITS BID PRICE OF $2. WHICH WAS RECEIVED ON DECEMBER 1. IT WAS STATED THAT THE CONTRACTING OFFICER HAD EXAMINED THE COMPANY'S WORK SHEETS. SINCE THE ERROR WAS ALLEGED AND SATISFACTORILY EXPLAINED PRIOR TO AWARD.

B-125991, DEC. 27, 1955

TO THE HONORABLE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 3, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR THE DAULT AND THOMAS COMPANY, SPENARD, ALASKA, ALLEGES IT MADE IN ITS BID ON WHICH CONTRACT NO. DA-95-515-ASK-465 IS BASED. RECEIPT OF YOUR LETTER OF DECEMBER 6, 1955, WITH ENCLOSURE, IS ALSO ACKNOWLEDGED.

BY INVITATION NO. ASK-95-515-55-58, THE PURCHASING AND CONTRACTING OFFICER, FORT RICHARDSON, ALASKA, REQUESTED BIDS--- TO BE OPENED ON JUNE 3, 1955--- FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK NECESSARY FOR THE REPAIR OF A DAMAGED CONCRETE FLOOR IN THE REFRIGERATION WAREHOUSE, BUILDING NO. 808, AT FORT RICHARDSON. THE WORK WAS TO COMMENCE ON JUNE 9, 1955, AND TO BE COMPLETED ON OR BEFORE JUNE 21, 1955. RESPONSE, THE DAULT AND THOMAS COMPANY SUBMITTED A BID DATED JUNE 3, 1955, OFFERING TO PERFORM THE WORK FOR THE LUMP SUM OF $2,541. THE THREE OTHER BIDDERS ON THE PROJECT SPECIFIED PRICES OF $3,356, $4,430, AND $4,950.

IN AN UNDATED REPORT FROM THE CONTRACTING OFFICER IT WAS STATED THAT PRIOR TO AWARD THE DAULT AND THOMAS COMPANY ADVISED BY TELEPHONE THAT AN ERROR OF $650 HAD BEEN MADE IN ITS BID IN THAT IT HAD UNDERESTIMATED THE AMOUNT OF CONCRETE REQUIRED FOR THE JOB BY 25 CUBIC YARDS. BECAUSE TIME DID NOT PERMIT THE SUBMISSION OF THE MATTER TO THE GENERAL ACCOUNTING OFFICE PRIOR TO AWARD, THE BID OF THE DAULT AND THOMAS COMPANY WAS ACCEPTED ON THE BASIS OF ITS BID PRICE OF $2,541, SUBJECT TO CORRECTION, IF AUTHORIZED, BY THE GENERAL ACCOUNTING OFFICE.

IN A CONFIRMING LETTER DATED AUGUST 2, 1955, THE COMPANY REQUESTED THAT THE CONTRACT PRICE OF THE JOB BE INCREASED BY $613.25--- THE DIFFERENCE BETWEEN ITS ORIGINAL ESTIMATED COST FOR CEMENT OF $410.85 AND ITS ACTUAL COST OF $1,024.10--- AND IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED AN ITEMIZED COST ANALYSIS SHEET SHOWING THE ORIGINAL ESTIMATED COST AND THE ACTUAL COST OF THE JOB. IN A TELETYPE MESSAGE FROM THE COMMANDING OFFICER, FORT RICHARDSON, ALASKA, TO THE DEPUTY CHIEF OF STAFF FOR LOGISTICS, WASHINGTON, D.C., WHICH WAS RECEIVED ON DECEMBER 1, 1955, IT WAS STATED THAT THE CONTRACTING OFFICER HAD EXAMINED THE COMPANY'S WORK SHEETS, PAYROLLS, AND RECEIPTED INVOICES FOR MATERIALS USED IN THE PERFORMANCE OF THE SUBJECT CONTRACT AND THAT HE CONSIDERS THE AMOUNT OF $613.25 CLAIMED BY THE COMPANY TO BE A REASONABLE PRICE FOR THE OMITTED MATERIAL.

ON THE RECORD, THERE APPEARS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND SATISFACTORILY EXPLAINED PRIOR TO AWARD--- WHICH AWARD WAS SUBJECT TO CORRECTION BY THE GENERAL ACCOUNTING OFFICE--- PAYMENT FOR THE MATERIAL OMITTED BY THE DAULT AND THOMAS COMPANY FROM ITS BID PRICE IS AUTHORIZED TO BE MADE IN THE AMOUNT OF $613.25, WHICH AMOUNT TOGETHER WITH THE COMPANY'S ORIGINAL BID PRICE IS STILL LOWER THAN ANY OF THE OTHER BIDS RECEIVED ON THE PROJECT.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING THE PAYMENT AUTHORIZED.

THE CONTRACTING OFFICER'S STATEMENT, A COPY OF THE COMPANY'S COST ANALYSIS SHEET, AND A COPY OF THE COMMANDING OFFICER'S TELETYPE ARE BEING RETAINED. THE OTHER PAPERS ARE RETURNED.