B-147702, MAR. 13, 1962

B-147702, MAR. 13, 1962

TO THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO LETTER DATED DECEMBER 26, 1961, FROM THE COMMISSIONER, PUBLIC BUILDINGS SERVICE, AND LETTER OF FEBRUARY 15, 1962, FROM THE COMMISSIONER, REGION 3, CONCERNING THE REQUEST OF PAINTRITE, INCORPORATED, TO BE RELEASED FROM CONTRACT NO. GS-R3-B 11001, PROJECT NO. 1205, FOR INTERIOR PAINTING, TEMPORARY BUILDINGS A, B AND C, SECOND AND R STREETS, S.W., WASHINGTON, D.C.

THE CONTRACT WAS AWARDED TO PAINTRITE, INCORPORATED, AS THE RESULT OF ITS LOW LUMP SUM BID OF $7,949, OPENED ON SEPTEMBER 7, 1961. AT THE TIME OF THE AWARD ON SEPTEMBER 22, 1961, THERE WAS NOTHING IN PARTICULAR OF SUFFICIENT IMPORTANCE TO PLACE THE CONTRACTING OFFICER ON NOTICE OF THE POSSIBILITY OF ERROR IN THE BID. THE GOVERNMENT ESTIMATE OF THE COST OF THE WORK WAS $8,900 AND ONE OTHER BID WAS IN THE AMOUNT OF $8,989. THE OTHER EIGHT BIDS RECEIVED, HOWEVER, WERE SUBSTANTIALLY HIGHER. THE NEXT THREE BIDS WERE IN THE AMOUNTS OF $14,790, $16,447 AND $24,199, RESPECTIVELY.

BY LETTERS DATED OCTOBER 15 AND 24, 1961, PAINTRITE, INCORPORATED, ALLEGED THAT IT HAD MADE AN ERROR IN ITS BID IN THAT IT HAD OMITTED IN THE COMPUTATION OF ITS BID ALL OFFICES OF THE HEADHOUSE AND ALL INNER SURFACES OF ALL WINGS ON THE SECOND FLOOR OF TEMPORARY BUILDING C. THE COMPETITION SUBMITTED IN SUPPORT OF THE ALLEGED ERROR ITS WORKSHEET SHOWING THE BASIS ON WHICH ITS BID WAS COMPUTED. IT IS STATED THAT EXCEPT FOR THE ERROR THE BID WOULD HAVE BEEN $15,949. THE CORPORATION REQUESTED TO BE RELEASED FROM THE CONTRACT. THIS REQUEST WAS DENIED BY THE CONTRACTING OFFICER BY LETTER DATED NOVEMBER 20, 1961, FOR THE REASON THAT ERROR WAS NOT ALLEGED UNTIL AFTER AWARD AND THAT AT THE TIME OF AWARD THERE WAS NOTHING TO PLACE HIM ON NOTICE OF THE POSSIBILITY OF ERROR IN THE BID. THE CONTRACTOR HAS NO COMMENCED THE WORK, NOR HAS IT FURNISHED THE REQUIRED PERFORMANCE AND PAYMENT BONDS.

IN THE LETTER OF FEBRUARY 15, 1962, FROM THE COMMISSIONER, REGION 3, IT IS STATED THAT A COMPLETELY NEW ESTIMATE OF THE COST OF THE WORK INVOLVED UNDER THE CONTRACT IS APPROXIMATELY $13,190.

ON THE BASIS OF THE FACTS AND CIRCUMSTANCES OF RECORD THERE APPEARS NO DOUBT THAT AN ERROR WAS MADE IN THE BID OF PAINTRITE, INCORPORATED, ALLEGED. FURTHERMORE, HAD THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK INVOLVED BEEN MORE ACCURATE, WE BELIEVE THAT THE CONTRACTING OFFICER SHOULD HAVE REQUESTED THE CORPORATION TO VERIFY ITS BID PRIOR TO AWARD. IN THE CIRCUMSTANCES, AND SINCE THE CONTRACTOR HAS NOT FURNISHED THE REQUIRED PERFORMANCE AND PAYMENT BONDS AND HAS NOT COMMENCED THE WORK, THE AWARD MAY BE RESCINDED AND PAINTRITE, INCORPORATED, RELIEVED OF ALL LIABILITY UNDER CONTRACT NO. GS-R3-B 11001.