B-129809, DEC. 4, 1956

B-129809: Dec 4, 1956

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 13. PARAGRAPH 27E OF THE SPECIAL CONDITIONS PROVIDES THAT PAYMENT FOR FURNISHING AND ERECTING THE FENCE WILL BE MADE AT THE UNIT PRICE PER MILE BID THEREFOR IN THE SCHEDULE AND THAT MEASUREMENT. WILL BE THE LENGTH ALONG THE LINE OF FENCE CONSTRUCTED. THE FIVE BIDS RECEIVED IN RESPONSE TO THE INVITATION WERE IN THE TOTAL AMOUNTS OF $6. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK IS $9. ALL THE BIDS ARE SUPPORTED BY A BID BOND IN THE AMOUNT OF 10 PERCENT OF THE BID AS REQUIRED. ERROR IN THE LOW BID WAS OBVIOUS ON ITS FACE AND UPON BEING ADVISED OF THE DISCREPANCY. IT WAS STATED THAT THE UNIT PRICE OF $5.10 SHOWN IN THE BID REPRESENTED THE APPROXIMATE COST PER ROD RATHER THAN PER MILE AS REQUIRED BY THE INVITATION.

B-129809, DEC. 4, 1956

TO MR. C. N. CARTER, ACTING REGIONAL DIRECTOR, BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 13, 1956, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION THAT SHOULD BE TAKEN WITH RESPECT TO THE BID OF SMITH LOGGING AND TRUCKING COMPANY SUBMITTED IN RESPONSE TO SPECIFICATIONS NO. 400C-75, AND OPENED ON OCTOBER 24, 1956.

THE INVITATION REQUESTED BIDS FOR FURNISHING AND ERECTING APPROXIMATELY 3.9 MILES OF COMBINATION BARBED AND WOVEN WIRE FENCE (ITEM 1); FURNISHING AND INSTALLING SIX WIRE GATES (ITEM 2), AND INSTALLING FIVE TUBULAR METAL FRAME GATES TO BE FURNISHED BY THE GOVERNMENT (ITEM 3). PARAGRAPH 27E OF THE SPECIAL CONDITIONS PROVIDES THAT PAYMENT FOR FURNISHING AND ERECTING THE FENCE WILL BE MADE AT THE UNIT PRICE PER MILE BID THEREFOR IN THE SCHEDULE AND THAT MEASUREMENT, FOR PAVEMENT, WILL BE THE LENGTH ALONG THE LINE OF FENCE CONSTRUCTED, EXCLUDING GATES. THE BID SCHEDULE PROVIDES FOR BIDDERS TO QUOTE UNIT PRICES AND TOTAL AMOUNTS BASED UPON THE ESTIMATED QUANTITIES FOR THE ITEMS.

THE FIVE BIDS RECEIVED IN RESPONSE TO THE INVITATION WERE IN THE TOTAL AMOUNTS OF $6,499, $9,400, $9,898, $18,676 AND $19,053. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK IS $9,750. ALL THE BIDS ARE SUPPORTED BY A BID BOND IN THE AMOUNT OF 10 PERCENT OF THE BID AS REQUIRED. HOWEVER, THE SECOND LOW AND THE THIRD LOW BIDDERS FAILED TO SHOW IN THEIR BIDS UNIT PRICES FOR ITEM 1, AND THE LOW BIDDER SHOWED A UNIT PRICE FOR ITEM 1 OF $5.10 AND THE EXTENDED AMOUNT AS $6,359.

ERROR IN THE LOW BID WAS OBVIOUS ON ITS FACE AND UPON BEING ADVISED OF THE DISCREPANCY, THE LOW BIDDER, SMITH LOGGING AND TRUCKING COMPANY, SUBMITTED A LETTER DATED OCTOBER 24, 1956, ALLEGING THAT A CLERICAL ERROR HAD BEEN MADE IN THE UNIT PRICE FOR ITEM 1 AND CONFIRMING THE TOTAL AMOUNT OF THE BID. IT WAS STATED THAT THE UNIT PRICE OF $5.10 SHOWN IN THE BID REPRESENTED THE APPROXIMATE COST PER ROD RATHER THAN PER MILE AS REQUIRED BY THE INVITATION.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO DOUBT THAT AN ERROR WAS MADE BY SMITH LOGGING AND TRUCKING COMPANY IN THE UNIT PRICE FOR ITEM 1 AS ALLEGED. FURTHERMORE, IT APPEARS THAT THE UNIT PRICE WOULD HAVE BEEN APPROXIMATELY $1,630.513 WHICH, WHEN MULTIPLIED BY 3.9, THE ESTIMATED NUMBER OF MILES, EQUALS THE TOTAL AMOUNT SHOWN FOR THE ITEM AND DOES NOT CHANGE THE AMOUNT OF THE BID AS SUBMITTED.

ACCORDINGLY, YOU ARE ADVISED THAT THE UNIT PRICE FOR ITEM 1 OF THE BID OF SMITH LOGGING AND TRUCKING COMPANY MAY BE CORRECTED TO READ $1,630.513 AND THE BID, AS SO CORRECTED, MAY BE CONSIDERED FOR AWARD.