B-140539, OCT. 27, 1959

B-140539: Oct 27, 1959

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TO HUTCHENS-MCCALEB CO.: FURTHER REFERENCE IS MADE TO YOUR LETTER DATED JULY 22. IN WHICH YOU ALLEGED THAT AN ERROR WAS MADE IN YOUR BID SUBMITTED ON JULY 15. WE ARE NOW IN RECEIPT OF A REPORT FROM THE DEPARTMENT OF THE ARMY. THAT YOU HAD GONE OVER YOUR ESTIMATES AND WERE SATISFIED THAT YOU COULD COME OUT WITH A PROFIT ON THE PROJECT FOR $10. NO SUPPORTING DOCUMENTS WERE OVER PRESENTED TO SUPPORT YOUR CLAIM OF MISTAKE OR TO INDICATE AN OTHERWISE INTENDED BID.

B-140539, OCT. 27, 1959

TO HUTCHENS-MCCALEB CO.:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED JULY 22, 1959, IN WHICH YOU ALLEGED THAT AN ERROR WAS MADE IN YOUR BID SUBMITTED ON JULY 15, 1959, IN RESPONSE TO INVITATION FOR BIDS NO. ORD-01-021-59-638 ISSUED JUNE 15, 1959, BY REDSTONE ARSENAL, REDSTONE ARSENAL, ALABAMA, SOLICITING BIDS FOR INSTALLING A STEAM HEATING SYSTEM FOR BUILDING NR. 4494, AND BECAUSE OF THE ALLEGED ERROR YOU REQUESTED TO BE RELEASED FROM YOUR BID.

WE ARE NOW IN RECEIPT OF A REPORT FROM THE DEPARTMENT OF THE ARMY, TOGETHER WITH A STATEMENT FROM THE CONTRACTING OFFICER, REGARDING THE MATTER. THE CONTRACTING OFFICER REPORTS THAT, AFTER HIS OFFICE TELEPHONED YOU ON JULY 17, 1959, REQUESTING YOU TO VERIFY YOUR BID, SINCE IT APPEARED QUITE LOW IN COMPARISON WITH THE OTHER BIDS RECEIVED, AND AFTER YOUR LETTER TO OUR OFFICE REQUESTING RELEASE FROM YOUR BID BECAUSE OF AN ALLEGED ERROR THEREIN, YOU ADVISED HIM BY TELEPHONE ON JULY 24, 1959, THAT YOU HAD GONE OVER YOUR ESTIMATES AND WERE SATISFIED THAT YOU COULD COME OUT WITH A PROFIT ON THE PROJECT FOR $10,623, YOUR ORIGINAL BID PRICE. ALSO, YOU REQUESTED THAT YOUR LETTER OF JULY 22, 1959, ASKING FOR RELEASE FROM YOUR BID, BE DISREGARDED AND THAT YOU BE ALLOWED TO PROCEED WITH THE WORK. IN LETTER OF JULY 24 YOU CONFIRMED YOUR BID PRICE OF $10,623 AND AGAIN REQUESTED THAT YOUR LETTER OF JULY 22, 1959, ASKING FOR RELEASE FROM YOUR BID BE DISREGARDED. THE CONTRACTING OFFICER STATES THAT, ALTHOUGH THE FACTS TENDED TO SHOW THAT YOU MADE A MISTAKE IN YOUR BID, NO SUPPORTING DOCUMENTS WERE OVER PRESENTED TO SUPPORT YOUR CLAIM OF MISTAKE OR TO INDICATE AN OTHERWISE INTENDED BID; CONSEQUENTLY, ON THE BASIS OF YOUR BID IN THE AMOUNT OF $10,623, AS CONFIRMED BY YOU IN WRITING, HE AWARDED CONTRACT NO. DA-01-021-21X4992.506 ORD 1020, DATED AUGUST 7, 1959, TO YOU.

IN VIEW OF THE FOREGOING, THE ACCEPTANCE OF YOUR BID AT YOUR CONFIRMED PRICE OF $10,623 RESULTED IN A VALID AND BINDING CONTRACT, WHICH PRECLUDES THE CONSIDERATION OF ANY CLAIM BY YOU FOR AN INCREASE IN THE CONTRACT PRICE BECAUSE OF A MISTAKE IN YOUR BID, AS HERETOFORE ALLEGED.