B-130804, MAR. 4, 1957

B-130804: Mar 4, 1957

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NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS: REFERENCE IS MADE TO LETTER DATED FEBRUARY 21. RELATIVE TO AN ERROR ALLEGED BY THE PHILLIPS ELECTRIC COMPANY TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. DECISION IS REQUESTED AS TO WHETHER THE BID MAY BE CORRECTED. THE THREE BIDS RECEIVED ARE IN THE AMOUNTS OF $25. THE GOVERNMENT ESTIMATE OF THE COST OF THE WORK WAS $28. IT IS STATED THAT UPON THE OPENING OF THE BIDS THE WIDE DISPARITY WAS NOTED IN THE PRICE BETWEEN THE LOW BID AND THE OTHER BIDS RECEIVED. EXPLAINED THAT ON ITS TAKE-OFF SHEETS IT WAS SHOWN THAT 1. 250 FEET OF 25/CONDUCTOR CABLE WAS REQUIRED AND THAT AN ALLOWANCE OF 50 FEET WAS MADE FOR END LOSSES IN INSTALLATION.

B-130804, MAR. 4, 1957

TO HONORABLE JAMES H. DOOLITTLE, CHAIRMAN, NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS:

REFERENCE IS MADE TO LETTER DATED FEBRUARY 21, 1957, FROM THE EXECUTIVE OFFICER, RELATIVE TO AN ERROR ALLEGED BY THE PHILLIPS ELECTRIC COMPANY TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. C-6022, ISSUED BY NACA LEWIS FLIGHT PROPULSION LABORATORY, CLEVELAND, OHIO. DECISION IS REQUESTED AS TO WHETHER THE BID MAY BE CORRECTED.

THE INVITATION REQUESTED BIDS TO BE OPENED ON FEBRUARY 1, 1957, FOR ELECTRICAL WORK FOR MODIFICATION OF AIR DISTRIBUTION SYSTEM AND CONVERSION OF 8 BY 6-FOOT PROPULSION TUNNEL LOCATED ON THE SITE OF THE NACA LEWIS FLIGHT PROPULSION LABORATORY, CLEVELAND, OHIO. THE THREE BIDS RECEIVED ARE IN THE AMOUNTS OF $25,800, $45,300 AND $48,600. THE GOVERNMENT ESTIMATE OF THE COST OF THE WORK WAS $28,000.

IT IS STATED THAT UPON THE OPENING OF THE BIDS THE WIDE DISPARITY WAS NOTED IN THE PRICE BETWEEN THE LOW BID AND THE OTHER BIDS RECEIVED. LETTER DATED FEBRUARY 5, 1957, THE PHILLIPS ELECTRIC COMPANY, THE LOW BIDDER, ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID AND REQUESTED THAT THE PRICE QUOTED BE INCREASED BY THE AMOUNT OF $1,597.47. IN SUPPORT OF THE ALLEGED ERROR, THE COMPANY SUBMITTED ITS WORKSHEETS, AND EXPLAINED THAT ON ITS TAKE-OFF SHEETS IT WAS SHOWN THAT 1,250 FEET OF 25/CONDUCTOR CABLE WAS REQUIRED AND THAT AN ALLOWANCE OF 50 FEET WAS MADE FOR END LOSSES IN INSTALLATION. HOWEVER, IN TRANSFERRING THE FIGURES FROM THE TAKE-OFF SHEETS TO THE RECAPITULATION SHEET THE TOTAL AMOUNT OF 25/CONDUCTOR CABLE WAS ENTERED AS 300 FEET RATHER THAN 1,300 FEET. THE COMPANY IS CLAIMING ONLY THE DIFFERENCE IN COST BETWEEN THE 300 FEET SHOWN ON THE RECAPITULATION SHEET AND 1,250 FEET, THE LENGTH SHOWN ON THE PLANS WITHOUT ANY ALLOWANCE FOR LOSSES IN INSTALLATION.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD THERE IS NO DOUBT THAT AN ERROR WAS MADE IN THE BID, AS ALLEGED. FURTHERMORE, IT APPEARS THAT EXCEPT FOR THE ERROR THE BID WOULD HAVE BEEN APPROXIMATELY IN THE AMOUNT OF $27,397.47, WHICH IS SUBSTANTIALLY LESS THAN THE AMOUNT OF THE NEXT LOWEST BID. ACCORDINGLY, THE BID OF THE PHILLIPS ELECTRIC COMPANY MAY BE CORRECTED TO $27,397.47, AND THE BID, AS SO CORRECTED, MAY BE CONSIDERED FOR AWARD.