B-127749, MAY 7, 1956

B-127749: May 7, 1956

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF APRIL 24. ERROR IN 14 OF THE 16 ITEMS OF SCHEDULE II WAS APPARENT ON THE FACE OF THE BID NOT ONLY BECAUSE THE BID PRICE WAS MUCH TOO LOW BUT ALSO BECAUSE THE UNIT PRICE QUOTED FOR SUCH ITEMS MULTIPLIED BY THE QUANTITY OF UNITS INVOLVED DID NOT EQUAL THE AMOUNTS STATED IN THE AMOUNT COLUMN. ONLY TWO BIDDERS WERE RECEIVED AND THE AUTHORIZED REPRESENTATIVES OF THE BIDDERS WERE PRESENT AT THE OPENING WHEN THE OBVIOUS ERROR IN THE LOW BID SUBMITTED BY THE TELLYER PIPE DIVISION OF CONCRETE CONDUIT COMPANY WAS NOTED AND DISCUSSED. AT THAT TIME THE LOW BIDDER'S REPRESENTATIVE WAS REQUESTED BY THE PROJECT PURCHASING AGENT TO CHECK. THE BIDDERS WERE THEN ADVISED THAT THE MATTER OF WHETHER THE BID PROPERLY MAY BE CORRECTED WOULD BE SUBMITTED TO HIGHER AUTHORITY FOR A DECISION.

B-127749, MAY 7, 1956

TO MR. JOHN C. THOMPSON, PROJECT MANAGER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 24, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER AN ALLEGEDLY ERRONEOUS UNDATED BID SUBMITTED BY THE TELLYER PIPE DIVISION OF CONCRETE CONDUIT COMPANY MAY BE CORRECTED AS TO SCHEDULE II AND CONSIDERED, AS CORRECTED, ALONG WITH THE OTHER BIDS ON THAT SCHEDULE IN MAKING THE AWARD.

THE RECORD SHOWS THAT ON FEBRUARY 15, 1956, AT THE TIME OF THE OPENING OF THE BIDS, ERROR IN 14 OF THE 16 ITEMS OF SCHEDULE II WAS APPARENT ON THE FACE OF THE BID NOT ONLY BECAUSE THE BID PRICE WAS MUCH TOO LOW BUT ALSO BECAUSE THE UNIT PRICE QUOTED FOR SUCH ITEMS MULTIPLIED BY THE QUANTITY OF UNITS INVOLVED DID NOT EQUAL THE AMOUNTS STATED IN THE AMOUNT COLUMN. ONLY TWO BIDDERS WERE RECEIVED AND THE AUTHORIZED REPRESENTATIVES OF THE BIDDERS WERE PRESENT AT THE OPENING WHEN THE OBVIOUS ERROR IN THE LOW BID SUBMITTED BY THE TELLYER PIPE DIVISION OF CONCRETE CONDUIT COMPANY WAS NOTED AND DISCUSSED. AT THAT TIME THE LOW BIDDER'S REPRESENTATIVE WAS REQUESTED BY THE PROJECT PURCHASING AGENT TO CHECK, EXPLAIN AND VERIFY THE BID. ALSO, THE BIDDERS WERE THEN ADVISED THAT THE MATTER OF WHETHER THE BID PROPERLY MAY BE CORRECTED WOULD BE SUBMITTED TO HIGHER AUTHORITY FOR A DECISION.

BY LETTER OF FEBRUARY 15, 1956 (BID OPENING DATE), AND BY THE SUBSEQUENT SWORN STATEMENT, DATED MARCH 26, 1956, OF THE COMPANY'S AUTHORIZED AGENT WHO SIGNED THE BID, THE TELLYER PIPE DIVISION OF CONCRETE CONDUIT COMPANY ADVISED OF AN ERROR IN ITS BID AS FOLLOWS:

"IN THE UNIT PRICE COLUMN I QUOTED THE PRICE PER LINEAL FOOT OF PIPE SPECIFIED, MULTIPLIED THAT TIMES THE LENGTH OF EACH PIPE SPECIFIED IN THE ITEM NUMBER, EXTENDED THAT FIGURE INTO THE AMOUNT COLUMN. I OVERLOOKED THE FACT THAT MOST ITEM NUMBERS REQUIRED A QUANTITY OF MORE THAN ONE PIPE.

"TO MAKE IT CLEAR, THE PRICE THAT I QUOTED IN THE UNIT PRICE IS THE PRICE PER LINEAL FOOT OF PIPE. THE PRICE THAT I QUOTED IN THE AMOUNT COLUMN IS THE PRICE FOR ONE PIPE OF THE LENGTH CALLED FOR IN THE ITEM NUMBER.

"THE ONLY EXPLANATION THAT I HAVE FOR THIS IS THAT I AM USED TO PRICING OUR PIPE ON A PER LINEAL FOOT BASIS.'

THE ABOVE SWORN STATEMENT, WHEN CONSIDERED WITH FACTS APPARENT FROM OUR EXAMINATION OF THE BID, REASONABLY ESTABLISHES THAT THE COMPANY'S UNIT BID PRICE QUOTED ON EACH OF ITEMS NOS. 12 THROUGH 27 WAS THE BIDDER'S PRICE PER LINEAL FOOT OF THE PIPE CALLED FOR UNDER THE ITEM AND THAT THE EXTENSION OF ITS BID TO THE AMOUNT COLUMN FOR EACH OF ITEMS OF SCHEDULE II WAS ON THE BASIS OF THE COMPUTED PRICE PER PIPE INVOLVED INSTEAD OF THE ACTUAL QUANTITY OF PIPES (UNITS) SPECIFIED IN THE QUANTITY (NUMBER OF UNITS) COLUMN FOR EACH ITEM. CONSEQUENTLY THE BID, AS SUBMITTED, CAN BE RECONCILED TO THE INTENDED BID BY MULTIPLYING THE TOTAL QUOTED IN THE AMOUNT COLUMN OF EACH ITEM OF SCHEDULE II BY THE QUANTITY OF PIPE, OR THE NUMBER OF UNITS, ACTUALLY INVOLVED. THEREFORE, THE COMPANY'S INTENDED AGGREGATE BID FOR SCHEDULE II, AS CORRECTLY RECONCILED BY THE ACTING PROJECT MANAGER ON ABSTRACT FORM NO. 3, IS $1,964.08, INSTEAD OF $676, AS QUOTED IN ITS BID.

IN VIEW THEREOF AND SINCE IT IS EXPRESSLY PROVIDED IN THE INVITATION FOR BIDS THAT THE AWARD WILL BE BY-SCHEDULE ONLY, THE BID OF TELLYER PIPE DIVISION OF CONCRETE CONDUIT COMPANY MAY BE CORRECTED SO AS TO PROVIDE FOR A TOTAL BID OF $1,964.08 ON SCHEDULE II, COVERING ITEMS NOS. 12 THROUGH 27 PROPERLY EXTENDED; AND, AS CORRECTED, THE BID MAY BE CONSIDERED ALONG WITH THE OTHER BID RECEIVED IN MAKING THE AWARD ON THAT SCHEDULE.

IN THE EVENT OF AN AWARD OF SCHEDULE II TO TELLYER PIPE DIVISION OF CONCRETE CONDUIT COMPANY A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.

THE ORIGINALS OF ALL PAPERS TRANSMITTED WITH YOUR LETTER ARE RETURNED. THE COPIES THEREOF ARE BEING RETAINED IN OUR OFFICE FILES.