B-129444, OCT. 18, 1956

B-129444, OCT. 18, 1956

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 3, 1956, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR G. S. CHASTAIN CONSTRUCTION COMPANY, DECATUR, ILLINOIS, ALLEGES IT MADE IN ITS BID ON WHICH CONTRACT NO. DA-11-019-SC-3043, DATED JUNE 30, 1956, WAS AWARDED.

THE DECATUR SIGNAL DEPOT, DECATUR, ILLINOIS, BY INVITATION NO. SC 11-019- 56-68, AS AMENDED, REQUESTED BIDS--- TO BE OPENED JUNE 27, 1956 -- FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK REQUIRED FOR THE CONSTRUCTION OF FLEXIBLE TYPE BITUMINOUS HARDSTAND AROUND SALVAGE BUILDING (BUILDING NO. 126), 11,350 SQUARE YARDS, WITH THREE APPROACHES AND GRADING OF OPEN DITCHES AS REQUIRED BY DRAWINGS AND SPECIFICATIONS. IN RESPONSE G. S. CHASTAIN CONSTRUCTION COMPANY SUBMITTED A BID DATED JUNE 27, 1956, OFFERING TO PERFORM THE WORK FOR THE LUMP-SUM OF $28,823. THE ABSTRACT OF BIDS SHOWS THAT THE TWO OTHER BIDS ON THE PROJECT WERE IN THE AMOUNTS OF $39,216 AND $51,137. IT IS REPORTED THAT THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK WAS $58,000.

IN AN UNDATED REPORT FROM THE CONTRACTING OFFICER IT WAS STATED THAT DURING THE COURSE OF A PRE-AWARD SURVEY WHICH WAS CONDUCTED ON JUNE 28,1956, MR. CHASTAIN VERBALLY ALLEGED THAT AN ERROR IN MULTIPLICATION WAS MADE BY HIM IN COMPUTING THE TOTAL PRICE FOR THE BITUMINOUS MATERIAL REQUIRED BY THE SPECIFICATIONS. THE RECORD INDICATES THAT IN REPLY TO A REQUEST FROM THE CONTRACTING OFFICER, DECATUR SIGNAL DEPOT, FOR PERMISSION TO CORRECT THE ERROR OF G. S. CHASTAIN CONSTRUCTION COMPANY, THE DEPUTY CHIEF OF STAFF FOR LOGISTICS ADVISED THE COMMANDING OFFICER, DECATUR SIGNAL DEPOT, THAT THE CONTRACTING OFFICER MAY, IF THE LOW BID IS OTHERWISE ACCEPTABLE, AWARD THE CONTRACT TO THE LOW BIDDER AT ITS BID PRICE, SUBJECT TO CORRECTION, IF AUTHORIZED, BY THE GENERAL ACCOUNTING OFFICE.

IN A NOTARIZED LETTER DATED JUNE 29, 1956, THE COMPANY STATED THAT IT ESTIMATED THAT 11,350 SQUARE YARDS OF BITUMINOUS MATERIAL AT $1.90 PER SQUARE YARD WERE REQUIRED, AND THAT IN EXTENDING THAT ITEM THE TOTAL THEREOF WAS SHOWN AS $11,565 RATHER THAN $21,565. THE COMPANY REQUESTED THAT THE CONTRACT PRICE OF THE WORK BE INCREASED BY $10,000 AND, IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED A NOTARIZED COPY OF A LETTER QUOTATION DATED JUNE 13, 1956, RECEIVED FROM ITS BITUMINOUS MATERIAL SUBCONTRACTOR, IN WHICH THE COMPANY WAS QUOTED FOR LAYING 11,350 SQUARE YARDS OF 2-INCH THICK BITUMINOUS SURFACE, A PRICE OF $1.75 PER SQUARE YARD AND A TOTAL PRICE OF $19,862.50. ALSO, THE COMPANY SUBMITTED A NOTARIZED WORK SHEET WHICH SHOWS VARIOUS ITEMS OF COST TOTALING $28,823, ITS BID PRICE. IT ALSO SHOWS THAT AMONG THE VARIOUS ITEMS OF COST IS ,BITUMINOUS I-11 11,350 SQ. YDS. AT $1.90," AND THE EXTENDED AMOUNT IS SHOWN AS $11,565. THE CORRECT EXTENSION FOR THAT ITEM IS $21,565. APPEARS THAT EXCEPT FOR THE ERROR THE BID WOULD HAVE BEEN IN THE AMOUNT OF $38,823. ON THE RECORD THERE IS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED.

IN THESE CIRCUMSTANCES, AND SINCE THE ERROR WAS ALLEGED AND SATISFACTORILY EXPLAINED PRIOR TO AWARD--- WHICH AWARD WAS MADE AND ACCEPTED SUBJECT TO CORRECTION BY OUR OFFICE--- CONTRACT NO. DA-11-019 SC- 3043 MAY BE AMENDED TO INCREASE THE CONSIDERATION TO $38,823, WHICH AMOUNT IS STILL LOWER THAN ANY OF THE OTHER BIDS RECEIVED ON THE PROJECT.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE AMENDMENT TO BE ATTACHED TO THE CONTRACT.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S UNDATED STATEMENT, ARE RETURNED.