B-136492, JUN. 24, 1958

B-136492: Jun 24, 1958

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UNITED STATES ATOMIC ENERGY COMMISSION: REFERENCE IS MADE TO YOUR LETTER OF JUNE 17. INVITATIONS WERE ISSUED ON MAY 21. NINE BIDS WERE OPENED AT 3 P.M. IT IS APPARENT THAT IN TAKING OFF THE AMOUNTS OF THE SUBBIDS FROM THE WORK PAPERS A SUBBID OF $23. 500 FOR THE COMBINED PLUMBING AND HEATING WORK WAS ERRONEOUSLY CONSIDERED AS APPLICABLE TO THE COMBINED PLUMBING. THE NET RESULT OF THE ERROR WAS THAT THE BID AS SUBMITTED FAILED TO INCLUDE ANY AMOUNT FOR THE ELECTRICAL WORK. THE LOWEST SUBBID FOR WHICH WAS $15. THE ORIGINAL COPIES OF THE DOCUMENTS SUBMITTED WITH YOUR LETTER ARE RETURNED HEREWITH AS REQUESTED. THE DUPLICATES THEREOF WILL BE RETAINED FOR OUR FILES.

B-136492, JUN. 24, 1958

TO H. A. FIDLER, MANAGER, SAN FRANCISCO OPERATIONS OFFICE, UNITED STATES ATOMIC ENERGY COMMISSION:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 17, 1958, REQUESTING OUR ADVICE AS TO WHETHER A BID SUBMITTED BY THE JOINT VENTURE OF UNITED CONSTRUCTION COMPANY AND CUSACK COMPANY MAY BE DISREGARDED BECAUSE OF AN ALLEGED ERROR IN THE BID.

INVITATIONS WERE ISSUED ON MAY 21, 1958, FOR BIDS ON THE CONSTRUCTION OF A HEALTH CHEMISTRY BUILDING AT THE LIVERMORE SITE OF THE SAN FRANCISCO OPERATIONS OFFICE. NINE BIDS WERE OPENED AT 3 P.M. ON JUNE 10, 1958, WHICH RANGED FROM $71,136.25 TO $85,555. THE APPARENT LOW BIDDER ALLEGED VERBALLY WITHIN AN HOUR OF BID OPENING THAT IT HAD FAILED TO INCLUDE IN ITS TOTAL BID PRICE A SUBBID OF $15,800 FOR THE ELECTRICAL WORK REQUIRED, AND REQUESTED TO BE RELIEVED OF RESPONSIBILITY FOR PERFORMANCE BY A LETTER OF THE SAME DAY. BY LETTER OF JUNE 16, 1958, IT SUBMITTED ITS ORIGINAL WORK PAPERS FOR THE BID PROPOSAL AND WRITTEN CONFIRMATIONS FROM ITS SUBBIDDERS.

FROM AN EXAMINATION OF THE SUBBIDS, THE WORK PAPERS, AND THE ADDING MACHINE TAPE OF THE ITEMS MAKING UP THE TOTAL BID OF $71,136.25, IT IS APPARENT THAT IN TAKING OFF THE AMOUNTS OF THE SUBBIDS FROM THE WORK PAPERS A SUBBID OF $23,500 FOR THE COMBINED PLUMBING AND HEATING WORK WAS ERRONEOUSLY CONSIDERED AS APPLICABLE TO THE COMBINED PLUMBING, HEATING AND ELECTRICAL WORK. THE NET RESULT OF THE ERROR WAS THAT THE BID AS SUBMITTED FAILED TO INCLUDE ANY AMOUNT FOR THE ELECTRICAL WORK, THE LOWEST SUBBID FOR WHICH WAS $15,800.

SINCE THE EVIDENCE SUBMITTED DEMONSTRATES CONCLUSIVELY THAT THE ERROR ALLEGED BY THE BIDDER DID OCCUR, THE BID OF UNITED CONSTRUCTION COMPANY AND CUSACK COMPANY SHOULD BE DISREGARDED AS YOU PROPOSE.

THE ORIGINAL COPIES OF THE DOCUMENTS SUBMITTED WITH YOUR LETTER ARE RETURNED HEREWITH AS REQUESTED. THE DUPLICATES THEREOF WILL BE RETAINED FOR OUR FILES.