B-144231, OCT. 19, 1960

B-144231: Oct 19, 1960

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 11. COMPANY TO HAVE BEEN MADE IN ITS BID OPENED ON SEPTEMBER 20. BIDS WERE REQUESTED FOR FURNISHING A BULKHEAD GATE FRAME AND ONE LOT OF ANCHORAGE FOR THE RIVER OUTLETS INTAKES AT THE FLAMING GORGE DAM. THE ENGINEER'S ESTIMATE WAS $18. THERE IS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID.

B-144231, OCT. 19, 1960

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

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 11, 1960, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY THE GARDINER MFG. COMPANY TO HAVE BEEN MADE IN ITS BID OPENED ON SEPTEMBER 20, 1960.

BY INVITATION NO. DS-5386, BIDS WERE REQUESTED FOR FURNISHING A BULKHEAD GATE FRAME AND ONE LOT OF ANCHORAGE FOR THE RIVER OUTLETS INTAKES AT THE FLAMING GORGE DAM, COLORADO RIVER STORAGE PROJECT, ITEMS 1 AND 2. RESPONSE THE GARDINER MFG. COMPANY SUBMITTED A BID DATED SEPTEMBER 14, 1960, OFFERING TO FURNISH THE GATE FRAME AND ANCHORAGE UNDER ITEMS 1 AND 2 FOR THE AGGREGATE TOTAL PRICE OF $18,420. THE SIX OTHER BIDDERS ON ITEMS 1 AND 2 QUOTED AGGREGATE TOTAL PRICES RANGING FROM $22,484 TO $34,505. THE ENGINEER'S ESTIMATE WAS $18,000 FOR ITEMS 1 AND 2.

BY TELEGRAM DATED SEPTEMBER 20, 1960, THE GARDINER MFG. COMPANY ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT IT HAD INCLUDED ONLY HALF OF THE REQUIRED ITEMS OF MATERIAL IN ESTIMATING ITS BID PRICE. THE COMPANY REQUESTED THAT IT BE PERMITTED TO WITHDRAW ITS BID ON THE EQUIPMENT.

IN A CONFIRMING NOTARIZED LETTER DATED OCTOBER 3, 1960, THE COMPANY STATED THAT EACH QUANTITY RELATIVE TO PIECES AND LABOR UNDER "GUIDE," ITEM 7 OF ITS ESTIMATE SHEET SHOULD BE DOUBLED; THAT THE GROSS WEIGHT SHOULD BE CHARGED FROM 9,221 POUNDS TO 18,441 POUNDS; AND THAT IT ALSO OMITTED IN ITS COMPUTATION THE COST OF STRESS RELIEVING ($1,080), STAINLESS PASSIVATING ($100) AND WELDING ($1,783). IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED ITS ESTIMATE SHEETS WHICH, YOU STATE, TEND TO SUPPORT THE ALLEGATION OF ERROR.

ON THE RECORD, THERE IS NO ROOM FOR DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, THE BID OF THE GARDINER MFG. COMPANY MAY BE DISREGARDED IN MAKING THE AWARD.