B-148648, APR. 19, 1962

B-148648: Apr 19, 1962

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FEDERAL HOUSING ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF APRIL 10. THE LOW BID WAS AMBIGUOUS IN THAT THE PRICE WAS STATED AS $22. THE THREE OTHER BIDS RECEIVED WERE $31. THE GOVERNMENT'S ESTIMATE FOR THE WORK WAS $35. 220 PRICE SEEMS TO BE INORDINATELY LOW SINCE THE GOVERNMENT'S ESTIMATE FOR THE WORK WAS $35. IS MORE IN LINE WITH THE NEXT LOW BID AND THE GOVERNMENT'S ESTIMATE AND THEREFORE SEEMS MORE TENABLE. SINCE THE BIDDER HAS STATED THAT THIS WAS THE INTENDED BID AND HAS FURNISHED A WORKSHEET IN SUPPORT OF THAT CONTENTION AND YOU STATE THAT YOU ARE SATISFIED THAT THIS FIGURE IS THE AMOUNT THE BIDDER INTENDED TO BID. IT IS BELIEVED THAT THE CIRCUMSTANCES WARRANT THE CORRECTION OF THE BID TO SHOW THAT PRICE ALONE.

B-148648, APR. 19, 1962

TO THE CONTRACTING OFFICER, GENERAL SERVICES DIVISION, FEDERAL HOUSING ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 10, 1962, REQUESTING A DECISION WHETHER A BID SUBMITTED BY A. AND M. GREGOS IN RESPONSE TO INVITATION 5833, COVERING CERTAIN EXTERIOR AND INTERIOR PAINTING AT THE MANOR PARK APARTMENTS FHA HOUSING PROJECT, MAY BE CORRECTED TO REFLECT THE HIGHER OF THE TWO PRICES QUOTED.

THE LOW BID WAS AMBIGUOUS IN THAT THE PRICE WAS STATED AS $22,220 IN WORDS AND AS $29,220 IN FIGURES. THE THREE OTHER BIDS RECEIVED WERE $31,160, $40,750 AND $44,744. THE GOVERNMENT'S ESTIMATE FOR THE WORK WAS $35,000.

UPON HAVING THE DISCREPANCY IN THE BID BROUGHT TO ITS ATTENTION, THE LOW BIDDER ADVISED THAT IT MADE AN ERROR IN WRITING OUT THE AMOUNT OF ITS BID IN THAT IT INTENDED TO BID $29,220 AS EVIDENCED BY A WORKSHEET IT FURNISHED IN SUPPORT OF ITS POSITION.

THE $22,220 PRICE SEEMS TO BE INORDINATELY LOW SINCE THE GOVERNMENT'S ESTIMATE FOR THE WORK WAS $35,000. THE $29,220 PRICE, ON THE OTHER HAND, IS MORE IN LINE WITH THE NEXT LOW BID AND THE GOVERNMENT'S ESTIMATE AND THEREFORE SEEMS MORE TENABLE. FURTHER, SINCE THE BIDDER HAS STATED THAT THIS WAS THE INTENDED BID AND HAS FURNISHED A WORKSHEET IN SUPPORT OF THAT CONTENTION AND YOU STATE THAT YOU ARE SATISFIED THAT THIS FIGURE IS THE AMOUNT THE BIDDER INTENDED TO BID, IT IS BELIEVED THAT THE CIRCUMSTANCES WARRANT THE CORRECTION OF THE BID TO SHOW THAT PRICE ALONE.