B-136267, JUN. 12, 1958

B-136267: Jun 12, 1958

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ATOMIC ENERGY COMMISSION: REFERENCE IS MADE TO YOUR LETTER OF MAY 23. IT IS REPORTED THAT AFTER THE OPENING OF THE BIDS. THE PROJECT ENGINEER QUESTIONED THE VALIDITY OF THE SNAKE RIVER EQUIPMENT COMPANY'S APPARENT LOW BID WHICH HE FELT WAS UNUSUALLY LOW AND UNDOUBTEDLY IN ERROR. SINCE IT WAS BELIEVED THAT THE COST OF THE PUMP IN AND OF ITSELF WAS CONSIDERABLY IN EXCESS OF THE AMOUNT THAT THE BIDDER QUOTED FOR FURNISHING. THE BIDDER WAS REQUESTED TO CONFIRM ITS BID. THE PROJECT ENGINEER IS CERTAIN THAT AN ERROR WAS MADE IN THE BID SUBMITTED BY THE SNAKE RIVER EQUIPMENT COMPANY. IN SUCH CIRCUMSTANCES AND SINCE THERE APPEARS NO REASONABLE BASIS TO DOUBT THAT AN ERROR WAS MADE AS ALLEGED.

B-136267, JUN. 12, 1958

TO MR. W. C. FUNK, CONTRACTING OFFICER, U.S. ATOMIC ENERGY COMMISSION:

REFERENCE IS MADE TO YOUR LETTER OF MAY 23, 1958, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION THAT SHOULD BE TAKEN WITH RESPECT TO THE BIDS SUBMITTED BY THE SNAKE RIVER EQUIPMENT COMPANY AND JOHNSON PUMP COMPANY IN RESPONSE TO INVITATION NO. AT/10-1/-941 COVERING THE FURNISHING AND INSTALLATION OF THE GAS COOLED REACTOR EXPERIMENT DEEP WELL PUMP AT THE NATIONAL REACTOR TESTING STATION IN IDAHO.

IT IS REPORTED THAT AFTER THE OPENING OF THE BIDS, THE PROJECT ENGINEER QUESTIONED THE VALIDITY OF THE SNAKE RIVER EQUIPMENT COMPANY'S APPARENT LOW BID WHICH HE FELT WAS UNUSUALLY LOW AND UNDOUBTEDLY IN ERROR, SINCE IT WAS BELIEVED THAT THE COST OF THE PUMP IN AND OF ITSELF WAS CONSIDERABLY IN EXCESS OF THE AMOUNT THAT THE BIDDER QUOTED FOR FURNISHING, INSTALLING AND TESTING THE PUMP. THEREFORE, THE BIDDER WAS REQUESTED TO CONFIRM ITS BID. THEREAFTER, THE BIDDER ALLEGED THAT ITS SUPPLIER OF THE PUMP HAD MADE AN ERROR OF APPROXIMATELY $7,500 IN THE PRICE OF THE PUMP AND RELATED EQUIPMENT. ON THE BASIS OF THE EVIDENCE SUBMITTED BY THE BIDDER AND ITS SUPPLIER AND DUE TO HIS FAMILIARITY WITH THE COST OF THE COMPETITIVE PUMP EQUIPMENT, THE PROJECT ENGINEER IS CERTAIN THAT AN ERROR WAS MADE IN THE BID SUBMITTED BY THE SNAKE RIVER EQUIPMENT COMPANY. IN SUCH CIRCUMSTANCES AND SINCE THERE APPEARS NO REASONABLE BASIS TO DOUBT THAT AN ERROR WAS MADE AS ALLEGED, THE BID OF SNAKE RIVER EQUIPMENT COMPANY COULD NOT BE ACCEPTED IN GOOD FAITH AND, THEREFORE, THE BID SHOULD BE DISREGARDED.

THE BID OF THE JOHNSON PUMP COMPANY WHICH CONTAINS TERMS AND CONDITIONS IN CONFLICT WITH THE INVITATION MAY NOT BE CONSIDERED A RESPONSIVE BID. SEE 35 COMP. GEN. 535 AND 37 ID. 110. ACCORDINGLY, THIS BID SHOULD ALSO BE DISREGARDED IN MAKING THE AWARD.