B-129092, SEPT. 11, 1956

B-129092: Sep 11, 1956

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED AUGUST 28. WERE OPENED ON AUGUST 15. THAT COMPARISON OF THE BID PRICES AT OPENING INDICATED TO THE CONTRACTING OFFICER THAT THERE WAS A POSSIBLE ERROR IN THE LOW BID SUBMITTED BY JULIUS E. SUCH ALLEGATION WAS CONFIRMED BY LETTER DATED AUGUST 16. IN WHICH IT WAS EXPLAINED THAT AN ERROR IN THE AMOUNT OF $1. 273 FOR ROOFING AND SHEET METAL WAS ERRONEOUSLY TRANSFERRED TO AN ADDING MACHINE TAPE AS $127.30. WHICH WERE FORWARDED TO YOUR OFFICE WITH THE BIDDER'S LETTER OF AUGUST 16. THAT THE BID AS SUBMITTED WAS COMPUTED ON THE BASIS OF THE ERRONEOUS ENTRY OF $127.30 FOR SUCH ITEM SHOWN ON THE ADDING MACHINE TAPE. IT IS OUR OPINION THAT THE BIDDER MADE A BONA FIDE ERROR IN HIS BID.

B-129092, SEPT. 11, 1956

TO HONORABLE H. V. HIGLEY, ADMINISTRATOR, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO A LETTER DATED AUGUST 28, 1956, FROM THE DEPUTY ADMINISTRATOR, FORWARDING AN ALLEGATION OF ERROR IN THE BID SUBMITTED BY JULIUS E. KAAZ CONSTRUCTION COMPANY FOR LABOR AND MATERIALS NECESSARY TO REPAIR THE PARAPET WALL AND REPLACE THE ROOF OF BUILDING NO. 12, VETERANS ADMINISTRATION CENTER, WADSWORTH, KANSAS.

THE FILE INDICATES THAT BIDS FOR SUCH WORK IN THE AMOUNTS OF $4,131, $8,079, AND $8,361, WERE OPENED ON AUGUST 15, 1956, AND THAT COMPARISON OF THE BID PRICES AT OPENING INDICATED TO THE CONTRACTING OFFICER THAT THERE WAS A POSSIBLE ERROR IN THE LOW BID SUBMITTED BY JULIUS E. KAAZ CONSTRUCTION COMPANY. WITHIN AN HOUR AFTER OPENING, THE LOW BIDDER ALLEGED ERROR BY TELEPHONE, AND SUCH ALLEGATION WAS CONFIRMED BY LETTER DATED AUGUST 16, 1956, IN WHICH IT WAS EXPLAINED THAT AN ERROR IN THE AMOUNT OF $1,146 OCCURRED WHEN AN ITEM OF $1,273 FOR ROOFING AND SHEET METAL WAS ERRONEOUSLY TRANSFERRED TO AN ADDING MACHINE TAPE AS $127.30.

EXAMINATION OF THE BIDDER'S ORIGINAL WORKSHEET AND THE ADDING MACHINE TAPE IN QUESTION, WHICH WERE FORWARDED TO YOUR OFFICE WITH THE BIDDER'S LETTER OF AUGUST 16, 1956, INDICATE BEYOND ANY REASONABLE DOUBT THAT THE BIDDER INTENDED TO INCLUDE AN AMOUNT OF $1,273 IN HIS TOTAL BID PRICE TO COVER THE COST OF ROOFING AND SHEET METAL, BUT THAT THE BID AS SUBMITTED WAS COMPUTED ON THE BASIS OF THE ERRONEOUS ENTRY OF $127.30 FOR SUCH ITEM SHOWN ON THE ADDING MACHINE TAPE. ACCORDINGLY, IT IS OUR OPINION THAT THE BIDDER MADE A BONA FIDE ERROR IN HIS BID. SINCE THE BIDDER ALLEGED ERROR IMMEDIATELY AFTER THE BID OPENING AND PROMPTLY SUBMITTED EVIDENCE WHICH SUBSTANTIATES HIS ALLEGATIONS BOTH AS TO THE AMOUNT OF ERROR AND THE MANNER IN WHICH THE ERROR OCCURRED, AND IN VIEW OF THE FACT THAT ADDITION OF $1,146, THE AMOUNT OF SUCH ERROR, WILL RESULT IN A BID PRICE OF $5,277, WHICH IS SUBSTANTIALLY LESS THAN THE SECOND LOW BID, CORRECTION MAY BE EFFECTED IN THE AMOUNT REQUESTED, AND THE CORRECTED BID MAY BE CONSIDERED FOR AWARD ALONG WITH THE OTHER BIDS RECEIVED.

THE BID OF JULIUS E. KAAZ CONSTRUCTION COMPANY, TOGETHER WITH THE ABSTRACT OF BIDS OPENED, ARE RETURNED HEREWITH.