B-129010, AUG. 22, 1956

B-129010, AUG. 22, 1956

TO THE SECRETARY OF THE INTERIOR:

REFERENCE IS MADE TO A LETTER DATED AUGUST 20, 1956, WITH ENCLOSURES, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY OF THE INTERIOR, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR MR. MANVIL H. OLSON, WASILLA, ALASKA, ALLEGES HE MADE IN HIS BID OPENED ON JULY 10, 1956.

THE ALASKA ROAD COMMISSION, JUNEAU, ALASKA, BY INVITATION DATED JUNE 15, 1956, REQUESTED BIDS FOR THE FURNISHING OF MATERIAL AND LABOR AND PERFORMING THE WORK REQUIRED FOR CLEARING THE RIGHT-OF-WAY OF THE PROPOSED HOUSTON TO WILLOW ROAD, ALASKA. SPECIFICALLY, THE WORK TO BE PERFORMED COVERED THE RANDOM CLEARING OF APPROXIMATELY 110 ACRES OF LAND. RESPONSE MR. MANVIL H. OLSON SUBMITTED A BID DATED JULY 3, 1956, OFFERING TO PERFORM THE WORK AT A PRICE OF $88.72 PER ACRE OR FOR A TOTAL PRICE OF $9,759.20. THE BID OF MR. OLSON WAS ACCOMPANIED BY A BID GUARANTEE IN THE AMOUNT OF $500. THE 10 OTHER BIDS ON THE PROJECT RANGED FROM $23,540 TO $88,000.

IN THE LETTER OF AUGUST 20, 1956, IT IS STATED AS FOLLOWS:

"THE ABSTRACT OF BIDS ESTABLISHED THE FOLLOWING ORDER OF BIDDERS:

CHART

OLSON $ 9,750.20 BASED ON $ 88.72 PER ACRE

HERN AND

BURKLAND 23,540,00 BASED ON 214.00 PER ACRE

COMMISSION'S ESTIMATE 31,900.00 BASED ON 290.00 PER ACRE

"THE GREAT DISPARITY BETWEEN THE BIDS AND THE COMMISSION'S ESTIMATE PUT THE CONTRACTING OFFICER ON NOTICE THAT AN ERROR MAY HAVE BEEN COMMITTED BY THE BIDDER. CONSEQUENTLY, THE BIDDER WAS CONTACTED, AND REPLIED IN A LETTER DATED JULY 13 AS FOLLOWS:

"THE BONDING AGENCIES ALL TOLD ME IT WOULD BE IMPOSSIBLE FOR ME TO GET PERFORMANCE BONDS ON MY BID AS I HAD MADE AN ERROR IN CALCULATION ON THE BID. I DID NOT FIGURE ON HIRING AND HOUSING A DOZER OPERATOR ON THE JOB, CONSEQUENTLY THERE WAS NOT ENOUGH ALLOWANCE MADE IN MYBID FOR THAT. INTENDED TO DO THE WORK MYSELF. I HAVE MADE AN HONEST ERROR IN FIGURING THE BID AND WISH TO WITHDRAW MY BID AND WOULD LIKE MY CERTIFIED CHECK FOR $500 RETURNED.'

"MR. OLSON FURTHER STATED THAT, IN VIEW OF THE FACT THAT THE JOB WAS SMALL AND A SIMPLE ONE, HE DID NOT PREPARE WORKSHEETS. HOWEVER, HE SUBMITTED THE FOLLOWING COMPUTATION IN SUBSTANTIATION OF HIS CLAIM OF MISTAKE:

CHART

ORIGINAL BID FOR CLEARING RIGHT OF WAY, HOUSTON TO WILLOW $9,759.20

ITEMS WHICH SHOULD HAVE BEEN INCLUDED IN BID---

DRIVER EXPENSE (WAGES, LODGING, TRANSPORTATION TO AND

FROM JOB, MEALS FOR EXTRA DRIVER): 4,896.40

BOND COST--- TRIP TO SEATTLE TO SIGN BOND AND BOND

CHARGE: 1,750.00

$16,505.60

25 PERCENT PROFIT 4,126.39

TOTAL $20,631.99"

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE IS NO ROOM FOR DOUBT THAT MR. OLSON MADE AN ERROR IN HIS BID, AS ALLEGED. ACCORDINGLY, SINCE IT WAS BELIEVED THAT MR. OLSON'S BID WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE ERROR WAS EXPLAINED PRIOR TO AWARD, HIS BID MAY BE DISREGARDED AND HIS BID GUARANTEE MAY BE RETURNED TO HIM.