B-127861, MAY 15, 1956

B-127861: May 15, 1956

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF MAY 7. YOU STATE THAT BECAUSE THE BID OF THE GENERAL ELECTRIC COMPANY WAS SUBSTANTIALLY BELOW THE OTHER BIDS. THE COMPANY WAS REQUESTED BY LETTER OF FEBRUARY 21. THE COMPANY ADVISED THAT ITS QUOTATION OF $648 FOR ITEM 4 OF SCHEDULE NO. 3 WAS IN ERROR IN THAT IT WAS BASED ON FURNISHING EQUIPMENT WHICH DID NOT MEET THE REQUIREMENTS OF THE SPECIFICATIONS. THE COMPANY STATED THAT ITS QUOTATION WAS BASED ON THE USE OF "E". - FRAME BREAKERS ARE REQUIRED TO MEET THE 15. THAT ITS CORRECT PRICE FOR THE REQUIRED EQUIPMENT IS $1. THERE IS NO DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID. SINCE IT WAS BELIEVED THE BID WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED PRIOR TO AWARD.

B-127861, MAY 15, 1956

TO MR. L. N. MCCLELLAN, CONTRACTING OFFICER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR LETTER OF MAY 7, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE GENERAL ELECTRIC COMPANY, DENVER, COLORADO, ALLEGES IT MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. DS-4594.

THE GENERAL ELECTRIC COMPANY SUBMITTED A BID OFFERING TO FURNISH, AMONG OTHER ITEMS, ONE 120/240-VOLT ALTERNATING-CURRENT DISTRIBUTION BOARD, FOR THE LUMP SUM OF $648, F.O.B. DESTINATION, AND FULL-SIZE REPRODUCED TRACINGS AT A PRICE OF $2 PER SQUARE FOOT. YOU STATE THAT BECAUSE THE BID OF THE GENERAL ELECTRIC COMPANY WAS SUBSTANTIALLY BELOW THE OTHER BIDS, WHICH RANGED FROM $938.80 TO $3,015, AND THE ENGINEER'S ESTIMATE OF $1,000, THE COMPANY WAS REQUESTED BY LETTER OF FEBRUARY 21, 1956, TO CONFIRM ITS BID PRICE OF $648 FOR THE DISTRIBUTION BOARD COVERED BY ITEM 4 OF SCHEDULE NO. 3.

BY LETTER DATED MARCH 1, 1056, THE COMPANY ADVISED THAT ITS QUOTATION OF $648 FOR ITEM 4 OF SCHEDULE NO. 3 WAS IN ERROR IN THAT IT WAS BASED ON FURNISHING EQUIPMENT WHICH DID NOT MEET THE REQUIREMENTS OF THE SPECIFICATIONS. IN A LETTER DATED MARCH 5, 1956, THE COMPANY STATED THAT ITS QUOTATION WAS BASED ON THE USE OF "E"--- FRAME BREAKERS, WHEREAS "F"-- - FRAME BREAKERS ARE REQUIRED TO MEET THE 15,000-AMPERE INTERRUPTING CAPACITY REQUIREMENT OF PARAGRAPH F-1 OF THE SPECIFICATIONS, AND THAT ITS CORRECT PRICE FOR THE REQUIRED EQUIPMENT IS $1,164. THE COMPANY REQUESTED THAT IT BE PERMITTED EITHER TO WITHDRAW OR TO CORRECT ITS BID. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY, BY LETTER DATED APRIL 12, 1956, SUBMITTED A SWORN STATEMENT DATED APRIL 4, 1956, EXPLAINING THE BASES USED IN COMPUTING THE ORIGINAL AND REVISED BID PRICES, WITH COPIES OF PERTINENT SHEETS FROM ITS REGULAR PRINTED HANDBOOKS.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE IT WAS BELIEVED THE BID WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED PRIOR TO AWARD, THE BID OF THE GENERAL ELECTRIC COMPANY AS TO SCHEDULE NO. 3 SHOULD BE DISREGARDED IN MAKING THE AWARD.