B-146600, AUG. 29, 1961

B-146600: Aug 29, 1961

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

DEPARTMENT OF THE INTERIOR: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 3. BIDS WERE REQUESTED FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK REQUIRED FOR THE CONSTRUCTION OF 115 -KV ADDITIONS TO CHADRON SUBSTATION. THE WORK TO BE PERFORMED WAS DIVIDED INTO 58 ITEMS FOR THE PURPOSES OF SUBMITTING BIDS AND MAKING PAYMENTS FOR THE WORK. 200 AND THE GOVERNMENT'S ESTIMATE FOR THE WORK WAS $35. SHOULD HAVE BEEN SHOWN AS $1.25 PER CUBIC YARD INSTEAD OF $0.25 PER CUBIC YARD. IN THE LETTER IT WAS STATED THAT THE VICE PRESIDENT OF THE COMPANY HAD INSERTED THE UNIT AND JOB PRICES ON THE RETAINED OFFICE COPY OF THE BID SCHEDULE. THAT AS A RESULT OF SUCH ERROR THE UNIT PRICE OF ITEM 1 WAS UNDERSTATED BY $1.

B-146600, AUG. 29, 1961

TO ASSISTANT COMMISSIONER AND CHIEF ENGINEER, BUREAU OF RECLAMATION, DEPARTMENT OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 3, 1961, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR THE COMMONWEALTH ELECTRIC COMPANY ALLEGES IT MADE IN ITS BID OPENED ON JULY 27, 1961.

BY SPECIFICATIONS NO. DC-5625, BIDS WERE REQUESTED FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK REQUIRED FOR THE CONSTRUCTION OF 115 -KV ADDITIONS TO CHADRON SUBSTATION, TRANSMISSION DIVISION, NEBRASKA, MISSOURI RIVER BASIN PROJECT. THE WORK TO BE PERFORMED WAS DIVIDED INTO 58 ITEMS FOR THE PURPOSES OF SUBMITTING BIDS AND MAKING PAYMENTS FOR THE WORK. IN RESPONSE THE COMMONWEALTH ELECTRIC COMPANY, LINCOLN, NEBRASKA, SUBMITTED A BID OFFERING TO PERFORM THE WORK UNDER ITEMS 1 TO 58, INCLUSIVE, AT THE VARIOUS UNIT AND JOB PRICES WHICH TOTALED $34,486.60. THE FOUR OTHER BIDS ON THE PROJECT RANGED FROM $41,199.40 TO $57,200 AND THE GOVERNMENT'S ESTIMATE FOR THE WORK WAS $35,499.

BY LETTER DATED JULY 27, 1961, THE COMMONWEALTH ELECTRIC COMPANY ADVISED THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT THE UNIT PRICE FOR ITEM 1, EXCAVATION FOR GRADING, SHOULD HAVE BEEN SHOWN AS $1.25 PER CUBIC YARD INSTEAD OF $0.25 PER CUBIC YARD. THE COMPANY REQUESTED THAT THE UNIT PRICE OF ITEM 1 BE CHANGED TO $1.25 PER CUBIC YARD. IN THE LETTER IT WAS STATED THAT THE VICE PRESIDENT OF THE COMPANY HAD INSERTED THE UNIT AND JOB PRICES ON THE RETAINED OFFICE COPY OF THE BID SCHEDULE; THAT IN TRANSFERRING SUCH PRICES TO THE BID SUBMITTED, AN EMPLOYEE OF THE COMPANY FAILED TO NOTE THAT THE VICE PRESIDENT HAD CHANGED THE UNIT PRICE OF ITEM 1 FROM $0.25 TO $1.25; AND THAT AS A RESULT OF SUCH ERROR THE UNIT PRICE OF ITEM 1 WAS UNDERSTATED BY $1. IN SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED A PHOTOSTATIC COPY OF ITS RETAINED OFFICE COPY OF THE BID SCHEDULE WHICH SHOWS THAT OPPOSITE ITEM 1, A UNIT PRICE OF $0.25 WAS ORIGINALLY ENTERED AND THEN CROSSED OUT AND THAT A NEW UNIT PRICE OF $1.25 WAS ENTERED DIRECTLY ABOVE IT THROUGH THE PRINTED WORDS "UNIT PRICE" APPEARING AT THE TOP OF ONE OF THE COLUMNS IN THE BID SCHEDULE.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO DOUBT THAT THE COMPANY MADE AN ERROR IN ITS BID, AS ALLEGED, AND IT IS APPARENT THAT THE INTENDED UNIT PRICE FOR ITEM 1 IS $1.25 PER CUBIC YARD. ACCORDINGLY, YOU ARE ADVISED THAT THE BID OF THE COMMONWEALTH ELECTRIC COMPANY MAY BE CORRECTED AND CONSIDERED FOR AWARD.