B-127037, FEB. 24, 1956

B-127037: Feb 24, 1956

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BONNEVILLE POWER ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 14. BIDS WERE REQUESTED FOR FURNISHING F.O.B. THE STAR IRON AND STEEL COMPANY ADVISED THAT ERRORS HAD BEEN MADE IN THE COMPANY'S BID IN THAT THE UNIT PRICES FOR ITEMS 1 AND 2 WERE REVERSED. WITH THE RESULT THAT THE UNIT PRICE FOR ITEM 1 SHOULD HAVE BEEN $4. 243 AND THE UNIT PRICE FOR ITEM 2 SHOULD HAVE BEEN $4. SINCE YOU STATE IN YOUR LETTER THAT THE CAR COVERED BY ITEM 1 IS OF MORE EXPENSIVE CONSTRUCTION THAN THE CAR COVERED BY ITEM 2 AND THIS IS BORNE OUT BY THE FACT THAT THE ABSTRACT OF BIDS SHOWS THAT EACH OF THE EIGHT OTHER BIDDERS QUOTED A HIGHER PRICE FOR ITEM 1 THAN FOR ITEM 2. ACCORDINGLY AND SINCE IT IS EQUALLY WELL ESTABLISHED WHAT THE COMPANY WOULD HAVE QUOTED FOR THE ITEMS BUT FOR ITS ERROR IN REVERSING ITS INTENDED PRICES.

B-127037, FEB. 24, 1956

TO MR. JOHN M. RATHBUN, CONTRACTING OFFICER, BONNEVILLE POWER ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 14, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING ERRORS THE STAR IRON AND STEEL COMPANY, TACOMA, WASHINGTON, ALLEGES IT MADE IN ITS BID OPENED ON JANUARY 30, 1956.

BY INVITATION NO. 7869, BIDS WERE REQUESTED FOR FURNISHING F.O.B. DESTINATION, ONE TRANSFORMER TRANSFER CAR TO BE MANUFACTURED IN ACCORDANCE WITH BPA DRAWING NO. 00-343-D328, UNREVISED, SERIAL NO. 90566, ITEM 1, AND TO FURNISH ONE TRANSFORMER TRANSFER CAR TO BE MANUFACTURED IN ACCORDANCE WITH BPA DRAWING NO. 699-76-343-D3, UNREVISED, SERIAL NO. 91272, ITEM 2. IN RESPONSE, THE STAR IRON AND STEEL COMPANY SUBMITTED A BID OFFERING TO FURNISH THE TRANSFORMER TRANSFER CAR UNDER ITEM 1 AT A PRICE OF $4,243 AND TO FURNISH THE TRANSFORMER TRANSFER CAR UNDER ITEM 2 AT A PRICE OF $4,937. THE ABSTRACT OF BIDS SHOWS THAT THE EIGHT OTHER BIDDERS ON ITEM 1 QUOTED PRICES RANGING FROM $5,042 TO $15,000, AND THAT FOR ITEM 2, THE SAME BIDDERS QUOTED PRICES RANGING FROM $4,289 TO $10,000.

BY LETTER DATED FEBRUARY 9, 1956, THE STAR IRON AND STEEL COMPANY ADVISED THAT ERRORS HAD BEEN MADE IN THE COMPANY'S BID IN THAT THE UNIT PRICES FOR ITEMS 1 AND 2 WERE REVERSED, WITH THE RESULT THAT THE UNIT PRICE FOR ITEM 1 SHOULD HAVE BEEN $4,937 INSTEAD OF $4,243 AND THE UNIT PRICE FOR ITEM 2 SHOULD HAVE BEEN $4,243 INSTEAD OF $4,937. THE COMPANY REQUESTED THAT ITS BID BE CORRECTED ACCORDINGLY. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY, BY LETTER DATED FEBRUARY 10, 1956, SUBMITTED ITS ORIGINAL ESTIMATE SHEETS WHICH SHOW THAT IT ESTIMATED THE COST OF THE CAR COVERED BY BPA DRAWING NO. 00 343-D38 (ITEM 1) AS BEING $4,937, AND THAT, FOR THE CAR COVERED BY BPA DRAWING NO. 699-76-343-D3 (ITEM 2), IT ESTIMATED THE COST AS BEING $4,243.

SINCE YOU STATE IN YOUR LETTER THAT THE CAR COVERED BY ITEM 1 IS OF MORE EXPENSIVE CONSTRUCTION THAN THE CAR COVERED BY ITEM 2 AND THIS IS BORNE OUT BY THE FACT THAT THE ABSTRACT OF BIDS SHOWS THAT EACH OF THE EIGHT OTHER BIDDERS QUOTED A HIGHER PRICE FOR ITEM 1 THAN FOR ITEM 2, IT SEEMS OBVIOUS THAT THE COMPANY DID NOT INTEND TO OFFER THE CAR COVERED BY ITEM 1 AT A PRICE LOWER THAN THE PRICE QUOTED BY IT FOR ITEM 2. ACCORDINGLY AND SINCE IT IS EQUALLY WELL ESTABLISHED WHAT THE COMPANY WOULD HAVE QUOTED FOR THE ITEMS BUT FOR ITS ERROR IN REVERSING ITS INTENDED PRICES, THE BID OF THE COMPANY ON ITEM 1 MAY BE CONSIDERED AS $4,937 AND ON ITEM 2 AS $4,243, AND THE BID AS SO CORRECTED MAY BE CONSIDERED ALONG WITH THE OTHER BIDS IN MAKING THE AWARD.

IN THE EVENT THAT AWARD BE MADE TO THE STAR IRON AND STEEL COMPANY, A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.