B-145553, MAY 9, 1961

B-145553: May 9, 1961

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VETERANS ADMINISTRATION CENTER: REFERENCE IS MADE TO YOUR LETTER DATED APRIL 7. F61-154 BIDS WERE REQUESTED FOR FURNISHING AND INSTALLING DISHWASHING EQUIPMENT AT THE VETERANS ADMINISTRATION CENTER. THE OTHER BIDS SUBMITTED WERE $38. AS COAST RESTAURANT AND HOTEL EQUIPMENT COMPANY WAS THE LOW BIDDER IT WAS ASKED TO VISIT THE CENTER TO DISCUSS THE METHOD OF PROCEDURE AMONG OTHER THINGS CONNECTED WITH THE SPECIFICATIONS. DURING THE DISCUSSION OF THE SPECIFICATIONS MENTION WAS MADE OF THE METHOD OF HOOK-UP OF ELECTRICAL. WHICH IS STATED TO BE A PART OF THE SPECIFICATIONS. THE COMPANY STATED THAT THIS WORK WAS NOT INCLUDED INITS BID. IT IS OUR OPINION THAT ACCEPTANCE OF THE LOW BID WITH KNOWLEDGE OF THE ALLEGED ERROR WOULD NOT RESULT IN A BINDING CONTRACT.

B-145553, MAY 9, 1961

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

REFERENCE IS MADE TO YOUR LETTER DATED APRIL 7, 1961, WITH ENCLOSURES, YOUR FILE 134032, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR COAST RESTAURANT AND HOTEL EQUIPMENT COMPANY ALLEGES IT MADE IN ITS BID OPENED MARCH 28, 1961.

BY INVITATION NO. F61-154 BIDS WERE REQUESTED FOR FURNISHING AND INSTALLING DISHWASHING EQUIPMENT AT THE VETERANS ADMINISTRATION CENTER. IN RESPONSE COAST RESTAURANT AND HOTEL EQUIPMENT COMPANY SUBMITTED A BID OF $30,271. THE OTHER BIDS SUBMITTED WERE $38,336, $41,895, $43,200 AND $46,088.

AS COAST RESTAURANT AND HOTEL EQUIPMENT COMPANY WAS THE LOW BIDDER IT WAS ASKED TO VISIT THE CENTER TO DISCUSS THE METHOD OF PROCEDURE AMONG OTHER THINGS CONNECTED WITH THE SPECIFICATIONS. DURING THE DISCUSSION OF THE SPECIFICATIONS MENTION WAS MADE OF THE METHOD OF HOOK-UP OF ELECTRICAL, PLUMBING AND DUCT WORK, WHICH IS STATED TO BE A PART OF THE SPECIFICATIONS. THE COMPANY STATED THAT THIS WORK WAS NOT INCLUDED INITS BID.

IN THE CIRCUMSTANCES, IT IS OUR OPINION THAT ACCEPTANCE OF THE LOW BID WITH KNOWLEDGE OF THE ALLEGED ERROR WOULD NOT RESULT IN A BINDING CONTRACT. CONSEQUENTLY, THE BID OF $30,271 BY COAST RESTAURANT MAY NOT BE ACCEPTED. FOR OBVIOUS REASONS ITS PROPOSAL OF APRIL 7, 1961, TO PERFORM THE WORK IN QUESTION FOR THE ADDITIONAL SUM OF $3,380 MUST BE DISREGARDED. ACCORDINGLY, IF AWARD IS TO BE MADE ON THE BASIS OF THE PRESENT BIDS, THE BID OF COAST RESTAURANT, WHICH IS RETURNED ..END :