B-148325, MAR. 23, 1962

B-148325: Mar 23, 1962

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TO THE SECRETARY OF THE INTERIOR: REFERENCE IS MADE TO YOUR LETTER OF MARCH 2. TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. NO OTHER BID WAS RECEIVED ON SCHEDULE NO. 2. THE GOVERNMENT ESTIMATE FOR THIS SCHEDULE WAS $7. AWARD WAS MADE TO GENERAL ELECTRIC COMPANY ON SCHEDULE NO. 2 (CONTRACT NO. 14-06-D-4301). WAS OMITTED FROM THE BID AND REQUESTING THAT THE CONTRACT PRICE BE INCREASED IN THAT AMOUNT. WITH THE LETTER THERE WERE FURNISHED COPIES OF CERTAIN PAGES FROM A PRICE BOOK SHOWING NET PRICE OF $690 AND $770 RESPECTIVELY FOR THE TRANSMITTERS AND RECEIVERS WHICH GENERAL ELECTRIC COMPANY PROPOSED IN ITS BID TO FURNISH FOR THOSE PRICES. ALSO ENCLOSED WITH THE LETTER WERE COPIES OF PAGES FROM A HANDBOOK SHOWING THE PRICE OF CABINETS AS $350 EACH.

B-148325, MAR. 23, 1962

TO THE SECRETARY OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 2, 1962, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY GENERAL ELECTRIC COMPANY OF DENVER, COLORADO, TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. (D) B 68,243- A ISSUED ON AUGUST 4, 1961, BY THE BUREAU OF RECLAMATION, DENVER, COLORADO.

THE INVITATION REQUESTED BIDS--- TO BE OPENED AUGUST 25, 1961--- FOR FURNISHING CARRIER-CURRENT TELEMETER TRANSMITTER AND RECEIVER SETS FOR SIOUX CITY, CRESTON, DENISON AND SPENCER SUBSTATIONS, MISSOURI RIVER BASIN PROJECT. PARAGRAPH 2 OF THE SPECIFICATIONS REQUIRED THE EQUIPMENT TO BE MOUNTED AND WIRED IN STEEL CABINETS.

IN RESPONSE TO THE INVITATION, GENERAL ELECTRIC COMPANY SUBMITTED A BID ON SCHEDULE NO. 2 OF THE INVITATION IN THE TOTAL AMOUNT OF $5,656, INCLUDING UNIT PRICES OF $690 ON THE TRANSMITTERS COVERED BY ITEMS NOS. 3, 4 AND 5, AND $770 ON THE RECEIVERS COVERED BY ITEM NO. 6 OF SCHEDULE NO. 2. NO OTHER BID WAS RECEIVED ON SCHEDULE NO. 2. THE GOVERNMENT ESTIMATE FOR THIS SCHEDULE WAS $7,400. ON SEPTEMBER 20, 1961, AWARD WAS MADE TO GENERAL ELECTRIC COMPANY ON SCHEDULE NO. 2 (CONTRACT NO. 14-06-D-4301).

IN A LETTER DATED OCTOBER 6, 1961, THE CONTRACTOR ALLEGED ERROR IN ITS BID, STATING THAT THE PRICE OF THE FOUR CABINETS REQUIRED BY THE SPECIFICATIONS, IN A TOTAL AMOUNT OF $1,400 ($350 EACH), WAS OMITTED FROM THE BID AND REQUESTING THAT THE CONTRACT PRICE BE INCREASED IN THAT AMOUNT. WITH THE LETTER THERE WERE FURNISHED COPIES OF CERTAIN PAGES FROM A PRICE BOOK SHOWING NET PRICE OF $690 AND $770 RESPECTIVELY FOR THE TRANSMITTERS AND RECEIVERS WHICH GENERAL ELECTRIC COMPANY PROPOSED IN ITS BID TO FURNISH FOR THOSE PRICES. HOWEVER EACH OF THE REFERRED-TO PAGES INCLUDED A NOTE AS FOLLOWS: "PRICES DO NOT INCLUDE CABINETS.' ALSO ENCLOSED WITH THE LETTER WERE COPIES OF PAGES FROM A HANDBOOK SHOWING THE PRICE OF CABINETS AS $350 EACH.

IN VIEW OF THE FACTS OF THIS MATTER AS RECORDED AND SHOWN BY THE FILE IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT GENERAL ELECTRIC COMPANY MADE A BONAFIDE ERROR IN ITS QUOTATION AS ALLEGED AND EXPLAINED BY IT. MOREOVER, ALTHOUGH ONLY ONE BID WAS RECEIVED, IT IS BELIEVED THAT THE CONTRACTING OFFICER SHOULD HAVE REQUESTED VERIFICATION BEFORE MAKING THE AWARD SINCE THE AMOUNT OF THE BID WAS ONLY 76 PERCENT OF THE GOVERNMENT ESTIMATE OF THE COST OF PROCURING THE EQUIPMENT COVERED BY THE INVITATION.

FOR THE REASONS ABOVE SET FORTH, WE OFFER NO OBJECTION TO MODIFICATION OF THE CONTRACT SO AS TO PROVIDE FOR PAYMENT OF AN ADDITIONAL AMOUNT OF $1,400 AS REQUESTED BY THE CONTRACTOR.

PURSUANT TO YOUR REQUEST, THE PAPERS TRANSMITTED WITH YOUR LETTER OF MARCH 2, 1962, ARE RETURNED HEREWITH.