B-134205, OCT. 31, 1957

B-134205: Oct 31, 1957

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NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS: REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 24. RUTHERFORD COMPANY TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. SEVEN BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION. RUTHERFORD COMPANY WAS IN THE AMOUNT OF $1. 000 AND THE OTHER BIDS WERE IN THE AMOUNTS OF $1. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK WAS $1. IT IS REPORTED THAT AT THE OPENING OF THE BIDS REPRESENTATIVES OF THE GEORGE A. 605 WAS DEDUCTED RATHER THAN ADDED TO THE TOTAL BID PRICE. 605 WAS DESIGNATED AS AN ADDITION TO THE ESTIMATE. WAS IN FACT DEDUCTED IN ARRIVING AT THE BID FIGURE. ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD THERE APPEARS LITTLE DOUBT THAT AN ERROR WAS MADE IN THE BID AS ALLEGED.

B-134205, OCT. 31, 1957

TO MR. E. H. CHAMBERLIN, EXECUTIVE OFFICER, NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS:

REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 24, 1957, REQUESTING A DECISION AS TO WHETHER WE WOULD BE REQUIRED TO OBJECT TO THE CORRECTION OF AN ERROR ALLEGED BY THE GEORGE A. RUTHERFORD COMPANY TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. C-6622-PB.

THE INVITATION REQUESTED BIDS TO BE OPENED ON OCTOBER 15, 1957, FOR THE CONSTRUCTION OF THE HOT LABORATORY BUILDING FOR THE NACA REACTOR FACILITY, LOCATED ON THE SITE OF THE PLUM BROOK ORDNANCE WORKS NEAR SANDUSKY, OHIO. SEVEN BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION. THE BASE BID OF THE GEORGE A. RUTHERFORD COMPANY WAS IN THE AMOUNT OF $1,024,000 AND THE OTHER BIDS WERE IN THE AMOUNTS OF $1,129,661, $1,153,663, $1,178,105, $1,178,800, $1,192,862, AND $1,213,250. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK WAS $1,235,823.

IT IS REPORTED THAT AT THE OPENING OF THE BIDS REPRESENTATIVES OF THE GEORGE A. RUTHERFORD COMPANY REQUESTED, IN VIEW OF THE WIDE DISPARITY BETWEEN THEIR BID AND THE OTHER BIDS RECEIVED, AN OPPORTUNITY TO CHECK THE BID FOR THE POSSIBILITY OF ERROR. BY LETTER DATED OCTOBER 22, 1957, THE BIDDER ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT AN ITEM FOR FORM LABOR TOTALLING $19,605 WAS DEDUCTED RATHER THAN ADDED TO THE TOTAL BID PRICE, RESULTING IN AN UNDERCHARGE OF $39,210. THE BIDDER REQUESTED CORRECTION OF ITS BID AND SUBMITTED IN SUPPORT THEREOF ITS COMPLETE WORKSHEETS FOR THE JOB, WHICH CLEARLY SHOW THAT THE $19,605 WAS DESIGNATED AS AN ADDITION TO THE ESTIMATE, BUT WAS IN FACT DEDUCTED IN ARRIVING AT THE BID FIGURE.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD THERE APPEARS LITTLE DOUBT THAT AN ERROR WAS MADE IN THE BID AS ALLEGED. ACCORDINGLY, SINCE ERROR WAS ALLEGED PRIOR TO AWARD AND EVIDENCE HAS BEEN SUBMITTED ESTABLISHING THE ERROR AND WHAT THE BID WOULD HAVE BEEN EXCEPT FOR THE ERROR, THE BASIC BID OF THE GEORGE A. RUTHERFORD COMPANY MAY BE CORRECTED BY ADDING $39,210, MAKING THE BID $1,063,210, WHICH IS STILL SUBSTANTIALLY LESS THAN THE AMOUNT OF THE NEXT LOW BID. THE BID, AS SO CORRECTED, MAY BE CONSIDERED FOR AWARD AS RECOMMENDED BY YOU.