B-144870, FEB. 15, 1961

B-144870: Feb 15, 1961

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 21. YOU STATE THAT SIX BIDS WERE RECEIVED IN RESPONSE TO THE BUREAU OF RECLAMATION'S INVITATION FOR BIDS FOR THE CONSTRUCTION OF THE STAGE 05 ADDITIONS TO JAMESTOWN SUBSTATION AND WERE OPENED AT 10 A.M. IS $224. WAS IN THE SUM OF $188. 493.50 AND WAS ACCOMPANIED BY A SUFFICIENT BID BOND IN THE PENAL SUM OF $40. PRIOR TO BID OPENING A TELEGRAM WAS RECEIVED FROM HIRSCH INCREASING BY $33. THERE WAS RECEIVED FROM THE SURETY ON HIRSCH'S BID BOND. A TELEGRAM ACKNOWLEDGING THAT THE SURETY BOND AMOUNT WAS INCREASED TO $45. 000 AND STATING THAT A CORRECTED BOND WAS FOLLOWING. TO THE EFFECT THAT UNDER ORDINARY CONDITIONS THE MENTIONED ENVELOPE WOULD HAVE ARRIVED AT THE FARGO POST OFFICE AT 12:40 P.M.

B-144870, FEB. 15, 1961

TO ASSISTANT COMMISSIONER AND CHIEF ENGINEER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 21, 1961, REQUESTING A DECISION AS TO WHETHER THE BID OF GUSTAV HIRSCH ORGANIZATION, INC., MAY BE CONSIDERED FOR AWARD.

YOU STATE THAT SIX BIDS WERE RECEIVED IN RESPONSE TO THE BUREAU OF RECLAMATION'S INVITATION FOR BIDS FOR THE CONSTRUCTION OF THE STAGE 05 ADDITIONS TO JAMESTOWN SUBSTATION AND WERE OPENED AT 10 A.M. CST ON JANUARY 10, 1961.

THE BIDS RECEIVED RANGED FROM A LOW OF $221,493.50, QUOTED BY HIRSCH, TO A HIGH OF $264,493.48. THE SECOND LOW BID QUOTED BY ELECTRICAL BUILDERS, INC., OF VALLEY CITY, NORTH DAKOTA, IS $224,487.50. THE INVITATION (STANDARD FORM 20) AND THE SPECIFICATIONS REQUIRED THE FURNISHING OF AN GUARANTY WITH EACH BID IN AN AMOUNT NOT LESS THAN 20 PERCENT OF THE BID AMOUNT. THE SPECIFICATIONS' SCHEDULE DIVIDED THE WORK INTO 90 DIFFERENT ITEMS OF WORK AND MATERIALS AND REQUIRED THE BIDDERS TO QUOTE SEPARATELY ON EACH ITEM, ON SOME, LUMP SUM PRICES AND, ON THE OTHERS, UNIT PRICES ON ESTIMATED QUANTITIES. THE BASIC BID OF HIRSCH, THE LOW BIDDER, WAS IN THE SUM OF $188,493.50 AND WAS ACCOMPANIED BY A SUFFICIENT BID BOND IN THE PENAL SUM OF $40,000. PRIOR TO BID OPENING A TELEGRAM WAS RECEIVED FROM HIRSCH INCREASING BY $33,000 ITS LUMP SUM QUOTATION FOR ITEM 16 OF THE SPECIFICATION'S SCHEDULE WITH A CONSEQUENT INCREASE TO $221,493.50 OF ITS TOTAL FOR THE SCHEDULE. ALSO, PRIOR TO BID OPENING, THERE WAS RECEIVED FROM THE SURETY ON HIRSCH'S BID BOND, A TELEGRAM ACKNOWLEDGING THAT THE SURETY BOND AMOUNT WAS INCREASED TO $45,000 AND STATING THAT A CORRECTED BOND WAS FOLLOWING. ON JANUARY 10, AT 4:30 P.M. CST, THE BID OPENING OFFICE RECEIVED A "CORRECTED" SUFFICIENT BID BOND IN THE SUM OF $45,000 DISPATCHED BY HIRSCH BY MAIL IN AN ENVELOPE BEARING THE COLUMBUS, OHIO, POST OFFICE CANCELLATION STAMP OF JANUARY 9, 1961, 7:30 P.M. THE FARGO POSTMASTER HAS FURNISHED A CERTIFICATION DATED JANUARY 11, 1960, TO THE EFFECT THAT UNDER ORDINARY CONDITIONS THE MENTIONED ENVELOPE WOULD HAVE ARRIVED AT THE FARGO POST OFFICE AT 12:40 P.M. ON JANUARY 10, 1961. THE SECOND LOW BIDDER HAS PROTESTED CONSIDERATION OF HIRSCH'S BID ON THE GROUND THAT THE GUARANTY REQUIREMENTS OF THE SPECIFICATIONS WERE NOT MET.

HAVING REGARD FOR THE FACT THAT THE SURETY ADVISED BY TELEGRAM PRIOR TO BID OPENING THAT THE BOND HAD BEEN INCREASED TO $45,000 TOGETHER WITH THE FACT THAT THE GOVERNMENT HAS IN ITS POSSESSION EVIDENCE CLEARLY SHOWING THAT THE "CORRECTED" BID BOND WAS POSTED PRIOR TO BID OPENING, WE THINK THAT THE GUARANTY REQUIREMENTS WERE SUBSTANTIALLY MET BY HIRSCH.

IN ADDITION TO THE FOREGOING, IT SHOULD BE NOTED THAT THE FEDERAL PROCUREMENT REGULATIONS (SECTION 1-10.102-5 (B) EFFECTIVE DECEMBER 1, 1960) SPECIFICALLY PROVIDE THAT A BID NEED NOT BE REJECTED BECAUSE OF DEFICIENCY IN THE AMOUNT OF A REQUIRED BID GUARANTY PROVIDED THE AMOUNT OF THE GUARANTY ACTUALLY SUBMITTED EQUALS OR EXCEEDS THE DIFFERENCE BETWEEN THAT BID AND THE NEXT HIGHER ACCEPTABLE BID. IN THE PRESENT CASE, SUCH BID DIFFERENCE WAS LESS THAN $3,000 AND THE BID BOND ORIGINALLY SUBMITTED WAS IN THE AMOUNT OF $40,000.

ACCORDINGLY, THE HIRSCH BID MAY BE CONSIDERED FOR AWARD.