B-144619, DEC. 23, 1960

B-144619: Dec 23, 1960

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TO THE SECRETARY OF THE INTERIOR: REFERENCE IS MADE TO LETTER OF DECEMBER 8. WHICH WAS OPENED OCTOBER 27. THE RECORD DISCLOSES THAT BY THE ABOVE INVITATION PROPOSALS WERE SOUGHT TO FURNISH TWO AUTOTRANSFORMERS UNDER SCHEDULE NO. 1. IT WAS DETERMINED THAT THE PROPOSAL OF WESTINGHOUSE WAS THE LOWEST BID RECEIVED ON BOTH ITEMS. BEFORE AWARD OF A CONTRACT WAS MADE. SUCH ALLEGATION WAS AFFIRMED. EXAMINATION OF THOSE PAPERS AND THE BALANCE OF THE RECORD BEFORE US SHOWS THAT THE WARRANTIES CONCERNING PERFORMANCE LOSSES IN OPERATION OF THE EQUIPMENT WERE BASED UPON SELF-COOLED RATINGS RATHER THAN "FORCED OIL/FORCED AIR RATINGS" AS REQUIRED BY THE SPECIFICATIONS. IS FURNISHED BY THE CORPORATION'S STANDARD SPECIFICATIONS NOS. 298.

B-144619, DEC. 23, 1960

TO THE SECRETARY OF THE INTERIOR:

REFERENCE IS MADE TO LETTER OF DECEMBER 8, 1960, WITH ENCLOSURES, FILE REFERENCE D-150, FROM THE ACTING ASSISTANT COMMISSIONER AND CHIEF ENGINEER, BUREAU OF RECLAMATION OF YOUR DEPARTMENT, SUBMITTING FOR OUR CONSIDERATION AND DECISION THE REQUEST OF WESTINGHOUSE ELECTRIC CORPORATION FOR PERMISSION TO WITHDRAW ITS BID SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. DS-5402, WHICH WAS OPENED OCTOBER 27, 1960.

THE RECORD DISCLOSES THAT BY THE ABOVE INVITATION PROPOSALS WERE SOUGHT TO FURNISH TWO AUTOTRANSFORMERS UNDER SCHEDULE NO. 1, AND ONE TRANSFORMER UNDER SCHEDULE NO. 2, IN ACCORDANCE WITH THE SPECIFICATIONS MADE A PART OF THE INVITATION. AFTER OPENING OF ALL BIDS AND THE EVALUATION THEREOF PURSUANT TO THE PERTINENT TERMS AND CONDITIONS OF THE INVITATION, IT WAS DETERMINED THAT THE PROPOSAL OF WESTINGHOUSE WAS THE LOWEST BID RECEIVED ON BOTH ITEMS. HOWEVER, ON NOVEMBER 9, 1960, BEFORE AWARD OF A CONTRACT WAS MADE, THE SAID BIDDER ALLEGED THAT A MISTAKE HAD BEEN MADE IN THE PREPARATION OF ITS OFFER AND, THEREAFTER BY LETTER OF NOVEMBER 10, 1960, AND AFFIDAVIT DATED NOVEMBER 18, 1960, SUCH ALLEGATION WAS AFFIRMED. EXAMINATION OF THOSE PAPERS AND THE BALANCE OF THE RECORD BEFORE US SHOWS THAT THE WARRANTIES CONCERNING PERFORMANCE LOSSES IN OPERATION OF THE EQUIPMENT WERE BASED UPON SELF-COOLED RATINGS RATHER THAN "FORCED OIL/FORCED AIR RATINGS" AS REQUIRED BY THE SPECIFICATIONS. FURTHER SUPPORT OF THE MISTAKE MADE, AS ALLEGED, IS FURNISHED BY THE CORPORATION'S STANDARD SPECIFICATIONS NOS. 298,680 AND 298,681.

IN VIEW OF ALL THE FACTS AND CIRCUMSTANCES OF RECORD, AND HAVING REGARD FOR THE MATERIAL DIFFERENCE BETWEEN THE KILOWATT FIGURES USED IN THE BID, AND THOSE BASED ON A PROPER COMPUTATION OF THE PERFORMANCE LOSSES, WE FEEL THAT A BONA FIDE ERROR WAS MADE IN THE MANNER STATED. FOR THOSE REASONS WE BELIEVE THAT ACCEPTANCE OF THE BID AS WRITTEN WOULD NOT CREATE A BINDING CONTRACT. ACCORDINGLY, THE WESTINGHOUSE ELECTRIC CORPORATION MAY BE PERMITTED TO WITHDRAW ITS BID WITHOUT FORFEITURE OF THE BID SECURITY REQUIRED TO BE POSTED BY THE TERMS OF THE INVITATION.

AS REQUESTED, A COPY OF THIS DECISION IS BEING FURNISHED TODAY TO THE COMMISSIONER OF THE BUREAU OF RECLAMATION, ATTENTION CODE 210, WASHINGTON, D.C. ..END :