B-136823, JUL. 17, 1958

B-136823: Jul 17, 1958

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CUSHMAN: REFERENCE IS MADE TO YOUR LETTER OF JULY 15. TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. THE FIVE OTHER BIDS RECEIVED ARE IN THE AMOUNTS OF $14. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK WAS $12. PHILLIPS WAS REQUESTED TO CONFIRM ITS BID. PHILLIPS CONFIRMED ITS BID AND STATED THAT THE BID WAS BASED ON LABOR COSTS OF $4. THE FOLLOWING ERROR WAS DISCOVERED: "SHEET NO. 1 - OF THE TAKE-OFF SHOWS AN ESTIMATED 6. THE WIRE COST SHOULD HAVE BEEN EXTENDED TO SHOW A TOTAL PRICE OF $1. THESE WORK PAPERS SHOW BEYOND A REASONABLE DOUBT THAT AN ERROR WAS MADE IN THE BID AS ALLEGED. SINCE ERROR WAS ALLEGED PRIOR TO AWARD AND EVIDENCE HAS BEEN SUBMITTED ESTABLISHING NOT ONLY THE ERROR BUT ALSO THE AMOUNT THAT THE BID WOULD HAVE BEEN EXCEPT FOR THE ERROR.

B-136823, JUL. 17, 1958

TO MR. RALPH E. CUSHMAN:

REFERENCE IS MADE TO YOUR LETTER OF JULY 15, 1958, REQUESTING A DECISION AS TO THE ACTION THAT SHOULD BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY PHILLIPS ELECTRIC COMPANY, CLEVELAND, OHIO, TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. C-6687 COVERING THE INSTALLATION OF CONTROL CABLE AND WIRING FOR COMPRESSOR AND EXHAUSTER MOTORS IN THE PROPULSION SYSTEMS LABORATORY BUILDING, LEWIS FLIGHT PROPULSION LABORATORY, CLEVELAND, OHIO.

IN RESPONSE TO THE INVITATION, PHILLIPS ELECTRIC COMPANY SUBMITTED A BID OFFERING TO PERFORM THE WORK FOR $9,973. THE FIVE OTHER BIDS RECEIVED ARE IN THE AMOUNTS OF $14,500, $16,700, $17,280, $17,730 AND $56,300. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK WAS $12,370.

IN VIEW OF THE WIDE DISPARITY IN THE PRICE QUOTED BY PHILLIPS ELECTRIC COMPANY AND IN THE OTHER BIDS RECEIVED, PHILLIPS WAS REQUESTED TO CONFIRM ITS BID. BY LETTER DATED JULY 1, 1958, PHILLIPS CONFIRMED ITS BID AND STATED THAT THE BID WAS BASED ON LABOR COSTS OF $4,950 AND $5,023 FOR MATERIALS. HOWEVER, BY LETTER DATED JULY 3, PHILLIPS ADVISED IN PART AS FOLLOWS:

"AFTER REVIEWING THE WIRE ESTIMATE PURSUANT TO PURCHASING THE NECESSARY CONTROL WIRE, THE FOLLOWING ERROR WAS DISCOVERED:

"SHEET NO. 1 - OF THE TAKE-OFF SHOWS AN ESTIMATED 6,600 FEET OF 4/64 INSULATION 8 CONDUCTOR NO. 14 WIRE PRICED AT $251.00 PER THOUSAND FEET. THE WIRE COST SHOULD HAVE BEEN EXTENDED TO SHOW A TOTAL PRICE OF $1,656.60.

"OUR TAKE-OFF MAN IN EXTENDING THE COST MISPLACED A DECIMAL POINT AND SHOWS A COST OF $166.00 FOR 6,600 FEET OF 8 CONDUCTOR WIRE.

"THIS ERROR IN EXTENSION RESULTS IN A NET ERROR OF $1,490.60 IN THE ESTIMATED COST OF 8/C CONTROL WIRE.'

THE COMPANY SUBMITTED IN SUPPORT OF THE ALLEGED ERROR ITS WORK PAPERS CONSISTING OF FIVE PAGES AND A RECAPITULATION SHEET. THESE WORK PAPERS SHOW BEYOND A REASONABLE 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 NOT ONLY THE ERROR BUT ALSO THE AMOUNT THAT THE BID WOULD HAVE BEEN EXCEPT FOR THE ERROR, THE BID OF PHILLIPS ELECTRIC COMPANY MAY BE INCREASED $1,490.60 OR TO $11,463.60 WHICH IS STILL SUBSTANTIALLY LOWER THAN THE NEXT LOW BID. THE BID, AS SO CORRECTED, MAY BE CONSIDERED FOR AWARD.