B-129791, NOV. 23, 1956

B-129791: Nov 23, 1956

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 14. THE RECORD INDICATES THAT THREE BIDS IN THE FOLLOWING AMOUNTS WERE RECEIVED AND WERE OPENED ON OCTOBER 15. A FORMAL ALLEGATION OF ERROR WAS MADE IN A LETTER DATED NOVEMBER 2. IN WHICH HE EXPLAINED THAT THE BIDDER WAS A "ONE-MAN COMPANY" AND THAT THE ERRONEOUS BID PRICE RESULTED FROM USE OF INCORRECT LABOR AND MATERIAL COSTS BY AN EMPLOYEE WHO WAS BEING TRAINED AS HIS POTENTIAL SUCCESSOR. THE LETTER WAS ACCOMPANIED BY TWO ESTIMATE SHEETS. ONE OF WHICH ALLEGEDLY WAS THE BASIS UPON WHICH THE BID HAD BEEN COMPUTED. IS LABELLED "CORRECT ESTIMATE.'.

B-129791, NOV. 23, 1956

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

REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 14, 1956, REQUESTING OUR DECISION AS TO WHETHER JOHN T. MACKENROW AND COMPANY MAY BE PERMITTED TO WITHDRAW OR CHANGE THE BID WHICH IT SUBMITTED IN CONNECTION WITH PROJECT NO. M AND R 37-5327 FOR REPAIRS TO GRAVELLED ROOFS OF BUILDING NO. 1, VETERANS ADMINISTRATION HOSPITAL, WILKES BARRE, PENNSYLVANIA.

THE RECORD INDICATES THAT THREE BIDS IN THE FOLLOWING AMOUNTS WERE RECEIVED AND WERE OPENED ON OCTOBER 15, 1956:

CHART

FIRM PRICE

THE PANTHER COMPANY $3,550.00

E. W. ROBERTS SONS 3,325.00

JOHN T. MACKENROW AND COMPANY 1,200.00

IN VIEW OF THE WIDE VARIATION IN BID PRICES, THE CONTRACTING OFFICER REQUESTED THE LOW BIDDER TO VERIFY HIS BID PRICE. ON OCTOBER 31, 1956, PRIOR TO AWARD, A REPRESENTATIVE OF THE BIDDER ALLEGED THAT AN ERROR HAD BEEN MADE IN THE BID PRICE. A FORMAL ALLEGATION OF ERROR WAS MADE IN A LETTER DATED NOVEMBER 2, 1956, FROM JOHN T. MACKENROW, IN WHICH HE EXPLAINED THAT THE BIDDER WAS A "ONE-MAN COMPANY" AND THAT THE ERRONEOUS BID PRICE RESULTED FROM USE OF INCORRECT LABOR AND MATERIAL COSTS BY AN EMPLOYEE WHO WAS BEING TRAINED AS HIS POTENTIAL SUCCESSOR. THE LETTER WAS ACCOMPANIED BY TWO ESTIMATE SHEETS, ONE OF WHICH ALLEGEDLY WAS THE BASIS UPON WHICH THE BID HAD BEEN COMPUTED, WHILE THE SECOND, IN THE AMOUNT OF $2,400.88, IS LABELLED "CORRECT ESTIMATE.' BASED UPON THE SECOND ESTIMATE, THE BIDDER HAS REQUESTED THAT HIS BID PRICE EITHER BE CORRECTED TO $2,400 OR THAT HE BE PERMITTED TO WITHDRAW HIS BID.

FOR THE REASONS STATED IN OUR LETTER OF TODAY TO YOU, B-129789, WITH REFERENCE TO AN ERROR ALLEGED BY THE SAME BIDDER IN HIS BID ON PROJECT NO. M AND R 37-5326, CORRECTION OF THE BID MUST BE DENIED, BUT IT MAY BE PERMITTED TO BE WITHDRAWN.