B-147744, JAN. 4, 1962

B-147744: Jan 4, 1962

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DEPARTMENT OF THE INTERIOR: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 6. TEN BIDS WERE RECEIVED AND THE LOW BID WAS SUBMITTED BY KEITH ELECTRIC COMPANY IN THE AMOUNT OF $9. THE HIGH BID WAS IN THE AMOUNT OF $40. THE ENGINEER'S ESTIMATE WAS $18. IN OTHER WORDS IT HAD COMPUTED ITS BID ON THE BASIS THAT ONLY TWO PANELS WERE REQUIRED FOR EACH OF THE THREE ITEMS. THE WRITTEN EVIDENCE SUBMITTED BY KEITH INDICATES THAT ITS BID WAS BASED ON FURNISHING ONLY SIX PANELS. IN THIS REGARD THE REQUIREMENT FOR THE TWELVE PANELS WAS CLEARLY SET FORTH IN THE FIRST AND SECOND SUB-PARAGRAPHS OF PARAGRAPH D-1 OF SPECIAL CONDITIONS. ALTHOUGH YOU ARE SATISFIED FROM AN EXAMINATION OF THE EVIDENCE SUBMITTED BY KEITH THAT IT MADE A SUBSTANTIAL ERROR IN ITS QUOTATION.

B-147744, JAN. 4, 1962

TO MR. GRANT BLOODGOOD, DEPARTMENT OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 6, 1961, FILE D-150, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH REGARD TO THE BID OF KEITH ELECTRIC COMPANY SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. DS-5697 ISSUED OCTOBER 30, 1961.

THE INVITATION REQUESTED BIDS--- TO BE OPENED NOVEMBER 21, 1961--- FOR FURNISHING TWO UNIT GAGE BOARDS FOR EACH OF THREE POWERPLANTS, F.O.B. REDDING, CALIFORNIA. TEN BIDS WERE RECEIVED AND THE LOW BID WAS SUBMITTED BY KEITH ELECTRIC COMPANY IN THE AMOUNT OF $9,855. THE HIGH BID WAS IN THE AMOUNT OF $40,010.56, DISCOUNT CONSIDERED. THE OTHER EIGHT BIDS RANGED FROM $11,996 TO $17,142. THE ENGINEER'S ESTIMATE WAS $18,000.

ON NOVEMBER 27, 1961, MR. DON P. SHAFER, WHO HAD SIGNED KEITH'S BID AS ITS VICE PRESIDENT, TELEPHONED YOU AND ALLEGED ERROR IN HIS COMPANY'S BID IN THAT IT HAD MISINTERPRETED THE REQUIREMENTS OF THE INVITATION AS TO THE NUMBER OF PANELS REQUIRED FOR EACH OF THE TWO GAGE BOARDS REQUIRED UNDER EACH OF THE ITEMS FOR THE THREE RESPECTIVE POWERPLANTS. IN OTHER WORDS IT HAD COMPUTED ITS BID ON THE BASIS THAT ONLY TWO PANELS WERE REQUIRED FOR EACH OF THE THREE ITEMS, OR SIX PANELS, RATHER THAN ON THE BASIS OF FURNISHING TWO PANELS FOR EACH OF THE TWO GAGE BOARDS, OR TWELVE PANELS. UPON BEING ADVISED TO SUBMIT WRITTEN EVIDENCE IN SUPPORT OF THE ALLEGED MISTAKE KEITH FURNISHED A SWORN STATEMENT DETAILING THE NATURE AND EXTENT OF THE MISTAKE, TOGETHER WITH THE ORIGINAL WORK DOCUMENTS. KEITH REQUESTED WITHDRAWAL OF IT BID. KEITH ALSO FURNISHED THE COPY OF A LETTER DATED NOVEMBER 20, 1961, FROM ITS INTENDED SUPPLIER QUOTING PRICES ON EQUIPMENT REQUIRED UNDER THE INVITATION.

THE WRITTEN EVIDENCE SUBMITTED BY KEITH INDICATES THAT ITS BID WAS BASED ON FURNISHING ONLY SIX PANELS, OR ONLY ONE-HALF OF THE NUMBER REQUIRED. IN THIS REGARD THE REQUIREMENT FOR THE TWELVE PANELS WAS CLEARLY SET FORTH IN THE FIRST AND SECOND SUB-PARAGRAPHS OF PARAGRAPH D-1 OF SPECIAL CONDITIONS. ALTHOUGH YOU ARE SATISFIED FROM AN EXAMINATION OF THE EVIDENCE SUBMITTED BY KEITH THAT IT MADE A SUBSTANTIAL ERROR IN ITS QUOTATION, IT IS NOT ESTABLISHED WHAT THE AMOUNT OF THE BID WOULD HAVE BEEN IF THE MISTAKE HAD NOT BEEN MADE.

SINCE ERROR WAS ALLEGED AFTER OPENING OF BIDS BUT BEFORE AWARD AND SINCE THE EVIDENCE OF RECORD REASONABLY ESTABLISHES THAT AN ERROR WAS IN FACT MADE, THE BID OF KEITH ELECTRIC COMPANY SHOULD BE DISREGARDED IN MAKING AWARD.