B-148319, MAR. 14, 1962

B-148319: Mar 14, 1962

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BUREAU OF RECLAMATION: REFERENCE IS MADE TO YOUR SPEEDLETTER DATED MARCH 2. REQUESTING OUR DECISION AS TO THE APPROPRIATE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID OF THE METAL CRAFT WELDING AND FABRICATING COMPANY. THE INVITATION WAS ISSUED ON DECEMBER 28. YOU REPORT THAT 23 BIDS WERE RECEIVED FOR BOTH ITEMS RANGING IN TOTAL PRICES THAT REFLECTED DISCOUNTS FROM $4. IT IS FURTHER REPORTED THAT WHILE METAL CRAFT'S BID FOR ITEM NO. 2 APPEARED REASONABLE. THE CORPORATION WAS REQUESTED TO CONFIRM ITS PRICE FOR ITEM NO. 1. THAT IN COMPUTING ITS BID IT HAD OVERLOOKED THE FACT THAT THE EIGHT TRASHRACKS CALLED FOR UNDER ITEM NO. 1 WERE TO BE MADE OF STAINLESS STEEL RATHER THAN MILD STEEL UPON WHICH ITS BID HAD BEEN BASED.

B-148319, MAR. 14, 1962

TO THE HEAD, INVITATIONS AND AWARDS SECTION, OFFICE OF ASSISTANT COMMISSIONER AND CHIEF ENGINEER, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR SPEEDLETTER DATED MARCH 2, 1962, WITH ENCLOSURES FILE D-289A, REQUESTING OUR DECISION AS TO THE APPROPRIATE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED TO HAVE BEEN MADE IN THE BID OF THE METAL CRAFT WELDING AND FABRICATING COMPANY, INC., UNDER INVITATION NO. (D) J-33,007-A.

THE INVITATION WAS ISSUED ON DECEMBER 28, 1961, BY THE BUREAU OF RECLAMATION, DENVER FEDERAL CENTER, SOLICITING BIDS FOR FURNISHING EIGHT TRASHRACKS UNDER ITEM NO. 1 AND 284 TIEDOWN CLIPS UNDER ITEM NO. 2. THE INVITATION PROVIDED FOR CONSIDERATION OF THE ENTIRE SCHEDULE AND NOT FOR ONLY A PART THEREOF. YOU REPORT THAT 23 BIDS WERE RECEIVED FOR BOTH ITEMS RANGING IN TOTAL PRICES THAT REFLECTED DISCOUNTS FROM $4,487.67 TO $19,743.86 F.O.B. DESTINATION, WHICH INCLUDED THE LUMP-SUM LOW BID SUBMITTED BY THE METAL CRAFT WELDING AND FABRICATING COMPANY,INC., OF $783 FOR ITEM NO. 1 AND $3,750 FOR ITEM NO. 2. IT IS FURTHER REPORTED THAT WHILE METAL CRAFT'S BID FOR ITEM NO. 2 APPEARED REASONABLE, ITS PRICE FOR ITEM NO. 1 SEEMED TO BE IN ERROR AND, THEREFORE, BY LETTER DATED FEBRUARY 6, 1962, THE CORPORATION WAS REQUESTED TO CONFIRM ITS PRICE FOR ITEM NO. 1. THE CORPORATION REPLIED BY LETTER DATED FEBRUARY 8, 1962, THAT IN COMPUTING ITS BID IT HAD OVERLOOKED THE FACT THAT THE EIGHT TRASHRACKS CALLED FOR UNDER ITEM NO. 1 WERE TO BE MADE OF STAINLESS STEEL RATHER THAN MILD STEEL UPON WHICH ITS BID HAD BEEN BASED. AS A RESULT OF THIS OVERSIGHT, METAL CRAFT REQUESTS THAT ITS BID BE WITHDRAWN.

THE RECORD SHOWS THAT METAL CRAFT'S BID OF $783 FOR ITEM NO. 1 NOT ONLY WAS OUT OF LINE WITH ALL OF THE OTHER BIDS RECEIVED FOR THIS ITEM, WHICH RANGED UPWARD FROM THE NEXT LOW BID OF $2,284, BUT ALSO WITH THE ENGINEER'S ESTIMATE OF $3,500. IT IS FURTHER SHOWN THAT BY REASON OF SUCH PRICE VARIATIONS YOU SUSPECTED THAT AN ERROR HAD BEEN MADE IN THE CORPORATION'S BID ON ITEM NO. 1 AND THAT YOUR SUSPICION WAS CONFIRMED WHEN THE CORPORATION IMMEDIATELY ADVISED, IN RESPONSE TO YOUR REQUEST FOR CONFIRMATION, THAT AN ERROR HAD BEEN MADE AND EXPLAINED HOW IT HAD OCCURRED. MOREOVER, AS EVIDENCE OF THE ERROR, THE CORPORATION HAS FURNISHED A NOTARIZED CERTIFICATION OF ITS ORIGINAL ESTIMATE SHEET TOGETHER WITH AN ESTIMATE SHOWING HOW THE BID SHOULD HAVE BEEN COMPUTED FOR FURNISHING TRASHRACKS MADE FROM STAINLESS STEEL.

IN VIEW OF THE FOREGOING, THERE CAN BE NO DOUBT THAT AN ERROR WAS, IN FACT, MADE ON ITEM NO. 1 IN THE BID OF THE METAL CRAFT WELDING AND FABRICATING COMPANY, INC., AS ALLEGED AND, THEREFORE, ITS BID MAY BE DISREGARDED.

THE PAPERS ARE RETURNED HEREWITH, AND A COPY OF THIS DECISION IS BEING FORWARDED TO THE COMMISSIONER OF RECLAMATION, WASHINGTON, D.C., IN ACCORDANCE WITH YOUR REQUEST.