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B-143042, JUN. 9, 1960

B-143042 Jun 09, 1960
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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF MAY 24. THE SCHEDULE OF THE WORK AND MATERIALS REQUIRED TO BE PERFORMED OR FURNISHED WAS DIVIDED INTO 34 ITEMS. THE LOW BID IS THAT SUBMITTED BY THE GIVENS CONSTRUCTION COMPANY IN THE STATED TOTAL AMOUNT OF $777. THE BID OF THAT COMPANY IS IN THE TOTAL AMOUNT OF $787. THE NEXT LOW BID IS IN THE AMOUNT OF $988. THE ENGINEER'S ESTIMATE IS IN THE AMOUNT OF $979. 400 WHICH WAS ROUNDED OUT TO $200. ON PAGE 2 OF THE ESTIMATE SHEET THERE WERE LISTED 9 ITEMS OF OVERHEAD AND ITEM 9 SHOWN THEREON AS "DEWATER AND MISCL.'. WAS LISTED AS $20. 000 WHEREAS IT SHOULD HAVE BEEN SHOWN AS $200. THE TOTAL OF THE 9 ITEMS IS SHOWN AS $127. 500 AND THE CORRECT TOTAL SHOULD HAVE BEEN SHOWN AS $307.

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B-143042, JUN. 9, 1960

TO MR. GRANT BLOODGOOD, ASSISTANT COMMISSIONER AND CHIEF ENGINEER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR LETTER OF MAY 24, 1960, FILE D-150, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH REGARD TO THE BID OF GIVENS CONSTRUCTION COMPANY SUBMITTED IN RESPONSE TO AN INVITATION FOR BIDS UNDER SPECIFICATIONS NO. DC-5305.

THE INVITATION REQUESTED BIDS--- TO BE OPENED MAY 11, 1960--- FOR THE CONSTRUCTION OF EARTHWORK, CONCRETE LINING AND STRUCTURES, WELLTON MOHAWK MAIN CONVEYANCE CHANNEL, STATION 2377 (PLUS) 05 TO STATION 3304 (PLUS) 22.59, AND SNYDER RANCH CONVEYANCE CHANNEL FOR WELLTON-MOHAWK DIVISION, GILA PROJECT, ARIZONA. THE SCHEDULE OF THE WORK AND MATERIALS REQUIRED TO BE PERFORMED OR FURNISHED WAS DIVIDED INTO 34 ITEMS. THE LOW BID IS THAT SUBMITTED BY THE GIVENS CONSTRUCTION COMPANY IN THE STATED TOTAL AMOUNT OF $777,550.40. AFTER CORRECTION OF AN ERROR IN ADDING THE EXTENSIONS IN THE SCHEDULE, THE BID OF THAT COMPANY IS IN THE TOTAL AMOUNT OF $787,050.40. THE NEXT LOW BID IS IN THE AMOUNT OF $988,286.50. THE 5 OTHER BIDS RANGE UPWARDS TO A HIGH BID OF $1,132,120.40. THE ENGINEER'S ESTIMATE IS IN THE AMOUNT OF $979,643.

ON MAY 11, 1960, THE GIVENS CONSTRUCTION COMPANY ALLEGED THAT AN ERROR HAD BEEN MADE IN THE PREPARATION OF ITS BID. IT SUBMITTED ITS WORKSHEETS AND ESTIMATE SHEETS. ON A SHEET NUMBERED "6" THE BIDDER COMPUTED CERTAIN COSTS TOTALING $192,400 WHICH WAS ROUNDED OUT TO $200,000. ON PAGE 2 OF THE ESTIMATE SHEET THERE WERE LISTED 9 ITEMS OF OVERHEAD AND ITEM 9 SHOWN THEREON AS "DEWATER AND MISCL.' WAS LISTED AS $20,000 WHEREAS IT SHOULD HAVE BEEN SHOWN AS $200,000. THE TOTAL OF THE 9 ITEMS IS SHOWN AS $127,500 AND THE CORRECT TOTAL SHOULD HAVE BEEN SHOWN AS $307,500. THIS AMOUNT TOGETHER WITH THE ESTIMATED DIRECT COSTS OF $617,195 WOULD HAVE AMOUNTED TO $924,695. IN THE ESTIMATED COST COLUMN THERE WAS SHOWN, HOWEVER, THE DIRECT COST OF $617,195 PLUS OVERHEAD IN THE AMOUNT OF $127,500 PLUS PROFIT (7 1/2 PERCENT) OF $55,852 OR A TOTAL OF $800,547. IN REGARD TO THE 34 ITEMS OF WORK THE TOTAL OF THE AMOUNTS BID UNDER EACH ITEM EQUALS $787,050.40 ONLY. THUS, EVEN IF THE CORRECT ESTIMATED AMOUNT OF OVERHEAD ($307,500) HAD BEEN USED BY THE BIDDER, IT IS BY NO MEANS CERTAIN THAT THE EXACT AMOUNT OMITTED AS OVERHEAD ($180,000) WOULD HAVE BEEN INCLUDED IN THE BID UNDER THE 34 ITEMS OF WORK.

SINCE ERROR WAS ALLEGED PROMPTLY AFTER THE OPENING OF BIDS AND SINCE THE EVIDENCE OF RECORD REASONABLY ESTABLISHES THAT AN ERROR WAS IN FACT MADE, THE BID OF THE GIVENS CONSTRUCTION COMPANY SHOULD BE DISREGARDED IN MAKING AWARD.

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