B-141043, NOV. 10, 1959

B-141043: Nov 10, 1959

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VETERANS ADMINISTRATION CENTER: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 8. THE RECORD DISCLOSES THAT BY THE ABOVE INVITATION PROPOSALS WERE SOUGHT TO FURNISH ALL THE NECESSARY MATERIALS. IT IS ASSUMED THAT THE LABOR AND RELATED COSTS TO PERFORM THOSE REQUIREMENTS OF THE SPECIFICATIONS. WERE OMITTED FROM THE BIDDER'S COST ESTIMATES. WE FEEL THAT A BONA FIDE MISTAKE WAS MADE AS ALLEGED.

B-141043, NOV. 10, 1959

TO L. BARCLAY, CONTRACTING OFFICER, VETERANS ADMINISTRATION CENTER:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 8, 1959, WITH ENCLOSURES, FILE REFERENCE 134D32, SUBMITTING FOR OUR CONSIDERATION AND DECISION THE REQUEST OF ALTA ROOFING COMPANY FOR PERMISSION TO WITHDRAW ITS BID SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. F60 79, PROJECT NO. D- 5036 A/C 3-194, TO RENOVATE AND REROOF BUILDINGS NOS. 113 AND 115 AT THE VETERANS ADMINISTRATION CENTER AT LOS ANGELES.

THE RECORD DISCLOSES THAT BY THE ABOVE INVITATION PROPOSALS WERE SOUGHT TO FURNISH ALL THE NECESSARY MATERIALS, LABOR, AND EQUIPMENT TO RENOVATE AND REPAIR THE DESIGNATED BUILDINGS IN ACCORDANCE WITH THE SPECIFICATIONS MADE A PART OF THE INVITATION. IN RESPONSE THERETO ALTA ROOFING COMPANY SUBMITTED A BID OF $9,621, WHERE AS THE FIVE OTHER BIDS RECEIVED RANGED FROM $11,179 TO $15,790. AFTER OPENING OF THE BIDS BUT BEFORE AWARD, THE SAID BIDDER ALLEGED THAT AN ERROR HAD BEEN MADE IN THE PREPARATION OF ITS PROPOSAL AND, THEREAFTER, BY LETTER DATED SEPTEMBER 17, 1959, AFFIRMED SUCH ALLEGATION, SUBMITTING IN SUPPORT THEREOF ITS ORIGINAL WORK PAPERS. AN EXAMINATION OF THOSE PAPERS SHOWS THE OMISSION OF ANY CHARGES FOR CAULKING COMPOUND AND PAINT NECESSARY TO PERFORM THE WORK REQUIRED UNDER PARAGRAPHS B (5) AND (6) OF THE SPECIFICATIONS. IT IS ASSUMED THAT THE LABOR AND RELATED COSTS TO PERFORM THOSE REQUIREMENTS OF THE SPECIFICATIONS, LIKEWISE, WERE OMITTED FROM THE BIDDER'S COST ESTIMATES, SINCE THE COMPANY STATES IN ITS LETTER OF SEPTEMBER 17, 1959, THAT THE SAID OMISSIONS REPRESENT A COST OF $4,000.

IN VIEW OF ALL THE FACTS AND CIRCUMSTANCES OF RECORD, AND HAVING REGARD FOR THE MATERIAL DIFFERENCE BETWEEN THE LOW BID AND THE FIVE OTHER OFFERS RECEIVED, WE FEEL THAT A BONA FIDE MISTAKE WAS MADE AS ALLEGED. FOR THOSE REASONS ACCEPTANCE OF THE BID AS WRITTEN WOULD NOT BE IN GOOD FAITH AND RESULT IN A BINDING CONTRACT.

ACCORDINGLY, THE ALTA ROOFING COMPANY MAY WITHDRAW ITS BID WITHOUT FORFEITURE OF THE BID SECURITY REQUIRED TO BE POSTED BY THE TERMS OF THE INVITATION.