B-126668, JAN. 23, 1956

B-126668: Jan 23, 1956

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TO THE HONORABLE SECRETARY OF THE INTERIOR: REFERENCE IS MADE TO LETTER DATED JANUARY 17. 150 WERE IN THE AMOUNTS OF $59. THE GOVERNMENT ESTIMATE WAS IN THE AMOUNT OF $60. IT IS STATED THAT. THE COMPANY STATED THAT THE UNIT PRICE FOR ITEM 102 SHOULD HAVE BEEN $1.85 AND NOT $1.35 PER CUBIC YARD AND THAT THE ERROR OCCURRED WHEN IT FAILED TO INCLUDE IN ITS UNIT PRICE FOR THAT ITEM THE COST OF HAULING THE GRAVEL. THE PRESIDENT OF THE COMPANY STATED THAT HE WAS OUT OF TOWN AT THE TIME THE PRICES ON THE COMPANY'S ESTIMATE SHEET WERE TRANSFERRED TO THE BID FORM AND THAT THE CLERK WHO FILLED OUT THE BID FORM OVERLOOKED A NOTATION ON THE ESTIMATE SHEET TO THE EFFECT THAT IN CONNECTION WITH ITEM 102.

B-126668, JAN. 23, 1956

TO THE HONORABLE SECRETARY OF THE INTERIOR:

REFERENCE IS MADE TO LETTER DATED JANUARY 17, 1956, WITH ENCLOSURES, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR CLEMENT BROTHERS COMPANY ALLEGES IT MADE IN ITS BID OPENED ON DECEMBER 15, 1955.

BY INVITATION DATED NOVEMBER 4, 1955, AS AMENDED, THE BUREAU OF INDIAN AFFAIRS, WASHINGTON, C., REQUESTED BIDS FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK REQUIRED FOR THE GRAVEL SURFACING OF BIG COVE ROAD, PROJECT 10S, CHEROKEE INDIAN RESERVATION, CHEROKEE, NORTH CAROLINA. IN RESPONSE, CLEMENT BROTHERS COMPANY SUBMITTED A BID OFFERING TO PERFORM THE WORK DESCRIBED UNDER EACH OF THE ITEMS IN THE SCHEDULE AT THE PRICE SPECIFIED OR FOR AN AGGREGATE TOTAL PRICE OF $39,050. THE TWO OTHER AGGREGATE BIDS ON ITEMS 3, 102, 102A, AND 150 WERE IN THE AMOUNTS OF $59,000 AND $69,000, AND THE GOVERNMENT ESTIMATE WAS IN THE AMOUNT OF $60,000. IN THE LETTER OF JANUARY 17, 1956, IT IS STATED THAT, UPON BEING REQUESTED BY TELEGRAM DATED DECEMBER 16, 1955, TO VERIFY ITS BID, CLEMENT BROTHERS COMPANY ADVISED BY TELEPHONE ON DECEMBER 17, 1955, THAT THE COMPANY HAD MADE AN ERROR IN QUOTING ON ITEM 102. IN A CONFIRMING TELEGRAM DATED DECEMBER 19, 1955, THE COMPANY STATED THAT THE UNIT PRICE FOR ITEM 102 SHOULD HAVE BEEN $1.85 AND NOT $1.35 PER CUBIC YARD AND THAT THE ERROR OCCURRED WHEN IT FAILED TO INCLUDE IN ITS UNIT PRICE FOR THAT ITEM THE COST OF HAULING THE GRAVEL. IN A LETTER DATED DECEMBER 22, 1955, THE PRESIDENT OF THE COMPANY STATED THAT HE WAS OUT OF TOWN AT THE TIME THE PRICES ON THE COMPANY'S ESTIMATE SHEET WERE TRANSFERRED TO THE BID FORM AND THAT THE CLERK WHO FILLED OUT THE BID FORM OVERLOOKED A NOTATION ON THE ESTIMATE SHEET TO THE EFFECT THAT IN CONNECTION WITH ITEM 102, THE COMPANY WAS AWAITING THE RECEIPT OF A QUOTATION FROM A HAULING SUBCONTRACTOR. THE COMPANY REQUESTED THAT THE UNIT PRICE FOR ITEM 102 BE INCREASED BY $0.50 AND THAT ITS AGGREGATE TOTAL BID PRICE BE INCREASED BY $9,000 TO $48,050.

IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED ITS ORIGINAL ESTIMATE SHEET AND A LETTER QUOTATION DATED DECEMBER 13, 1955- - TWO DAYS BEFORE THE DATE OF THE BID OPENING--- RECEIVED FROM ITS HAULING SUBCONTRACTOR, IN WHICH A UNIT PRICE OF $0.50 PER CUBIC YARD WAS QUOTED FOR HAULING 18,000 CUBIC YARDS OF GRAVEL ON THE PROJECT AND FOR ANY REQUIRED STOCKPILING.

IN THE ADMINISTRATIVE ASSISTANT SECRETARY'S LETTER OF JANUARY 17, IT WAS FURTHER STATED---

"ON THE ORIGINAL WORK SHEET UNDER ITEM 102 (1) TWO DIVISIONS ARE GIVEN, "CRUSHED STONE SURFACE COURSE, CLASS (2)" WITH A UNIT PRICE OF 85 CENTS AND "CONDITIONING" WITH A UNIT PRICE OF 50 CENTS. EACH IS EXTENDED TO A "BID" COLUMN WHERE THE AMOUNTS ARE SHOWN AS $15,300.00 AND $9,000.00. ASTERISK IS PLACED AFTER THE $1.35 FIGURE OPPOSITE THE UNIT PRICE OF 50 CENTS WHICH IS EXPLAINED BY A FOOT NOTE WHICH READS:

"* HAULING TO ROAD AND STOCKPILING TO BE QUOTED FROM HAULING CONTRACTOR- RABB OR KINCAID.'

"THE ENGINEERING STAFF OF THE BUREAU OF INDIAN AFFAIRS HAS ANALYZED THE CLEMENT BROTHERS COMPANY BID AND THE ORIGINAL WORK SHEET AND OTHER DATA FURNISHED BY THE BIDDER IN SUPPORT OF ITS EXPLANATION OF THE CLAIMED ERROR AND IN THEIR OPINION THERE IS REASONABLE GROUNDS AND LOGICAL SUPPORT FOR THE CLAIM AND THAT THE 50 CENTS PRICE FOR HAULING AND STOCKPILING WHICH CLEMENT BROTHERS COMPANY CLAIM WAS OMITTED FROM ITEM 102 (1) IS A FAIR AND REASONABLE VALUE FOR HAULING AND STOCKPILING. THE BUREAU'S OWN ENGINEERING ESTIMATE FOR THE UNIT PRICE PER CUBIC YARD FOR ITEM 102, IS $1.84 WHICH IS COMPARABLE TO THE $1.85 THE LOW BIDDER CLAIMS HIS BID SHOULD HAVE BEEN FOR THAT ITEM.'

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT THE COMPANY FAILED TO INCLUDE AN AMOUNT IN ITS UNIT BID PRICE FOR ITEM 102 TO COVER THE HAULING OF THE GRAVEL AND THAT IT INTENDED TO QUOTE A UNIT PRICE OF $1.85 PER CUBIC YARD FOR THAT ITEM. ACCORDINGLY, THE BID OF CLEMENT BROTHERS COMPANY MAY BE CORRECTED TO PROVIDE FOR A UNIT PRICE OF $1.85 PER CUBIC YARD FOR ITEM 102.

IN THE EVENT THAT AWARD BE MADE TO CLEMENT BROTHERS COMPANY ON THE PROJECT, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTOR'S ESTIMATE SHEET AND THE COPY OF THE ESTIMATE RECEIVED FROM ITS HAULING SUBCONTRACTOR, ARE RETURNED.