B-148801, MAY 7, 1962

B-148801: May 7, 1962

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TO THE SECRETARY OF THE INTERIOR: REFERENCE IS MADE TO LETTER DATED MAY 1. THE INVITATION PROVIDES THAT AWARD WILL BE MADE ON ANY ITEM OR COMBINATION OF ITEMS WHICH RESULTS IN THE LOWEST COST TO THE GOVERNMENT. THERE WAS A BID FROM INTERNATIONAL HELICOPTERS. SHORTLY THEREAFTER THE BIDDER CALLED THE CONTRACTING OFFICER BACK ADVISING THAT THE PRICE FOR ITEM 5 AS SET FORTH IN THE TELEGRAPHIC MODIFICATION WAS ERRONEOUS IN THAT THE PRICE SHOULD HAVE BEEN $29. THE BIDDER ALLEGES THAT IT WAS ITS INTENT TO REDUCE THE ORIGINAL PRICES ON ALL ITEMS BY 5 PERCENT. THE FINAL PRICE QUOTED FOR ITEM 5 IS OUT OF PROPORTION WITH THE PRICES QUOTED BY INTERNATIONAL ON THE OTHER ITEMS. ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD THERE IS NO DOUBT THAT AN ERROR WAS MADE IN THE TELEGRAPHIC MODIFICATION AS TO THE PRICE FOR ITEM 5.

B-148801, MAY 7, 1962

TO THE SECRETARY OF THE INTERIOR:

REFERENCE IS MADE TO LETTER DATED MAY 1, 1962, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY, REQUESTING A DECISION AS TO THE ACTION WHICH SHOULD BE TAKEN WITH RESPECT TO AN ERROR ALLEGED BY INTERNATIONAL HELICOPTERS ON ITEM 5 OF ITS BID SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. AFO-62- 15, ISSUED BY THE BUREAU OF LAND MANAGEMENT, JUNEAU, ALASKA.

THE INVITATION REQUESTED BIDS ON FIVE SEPARATE ITEMS OF HELICOPTER SERVICE WITHIN THE STATE OF ALASKA. EACH OF THE ITEMS REQUIRES THE USE OF ONE HELICOPTER IN VARIOUS AREAS. THE ITEMS PROVIDE FOR THE USE OF THE HELICOPTER FOR A SPECIFIC NUMBER OF DAYS. THE INVITATION PROVIDES THAT AWARD WILL BE MADE ON ANY ITEM OR COMBINATION OF ITEMS WHICH RESULTS IN THE LOWEST COST TO THE GOVERNMENT.

AMONG THE EIGHT BIDS RECEIVED IN RESPONSE TO THE INVITATION AND OPENED ON APRIL 20, 1962, THERE WAS A BID FROM INTERNATIONAL HELICOPTERS. THIS BIDDER QUOTED ON ALL FIVE ITEMS AND ITS BID CONSISTED OF A BID ON THE FORM PROVIDED AND A TELEGRAM MODIFYING THE PRICES QUOTED IN THE FORMAL PROPOSAL.

AFTER THE OPENING OF THE BIDS INTERNATIONAL HELICOPTERS CALLED THE CONTRACTING OFFICER FOR THE BID RESULTS, AND SHORTLY THEREAFTER THE BIDDER CALLED THE CONTRACTING OFFICER BACK ADVISING THAT THE PRICE FOR ITEM 5 AS SET FORTH IN THE TELEGRAPHIC MODIFICATION WAS ERRONEOUS IN THAT THE PRICE SHOULD HAVE BEEN $29,189.16 RATHER THAN $21,189.16 AS STATED THEREIN.

BY LETTER DATED APRIL 20, 1962, THE BIDDER CONFIRMED ITS ALLEGATION OF ERROR AND SUBMITTED IN SUPPORT THEREOF ITS WORK PAPERS SHOWING THE BASIS OF ITS ORIGINAL PRICES AND OF THE REVISION THEREOF. THE BIDDER ALLEGES THAT IT WAS ITS INTENT TO REDUCE THE ORIGINAL PRICES ON ALL ITEMS BY 5 PERCENT. THE EVIDENCE SUBMITTED BEARS OUT THIS CONTENTION. FURTHERMORE, THE FINAL PRICE QUOTED FOR ITEM 5 IS OUT OF PROPORTION WITH THE PRICES QUOTED BY INTERNATIONAL ON THE OTHER ITEMS, CONSIDERING THE DIFFERENCE IN THE NUMBER OF DAYS OF USE FOR THE HELICOPTERS.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD THERE IS NO DOUBT THAT AN ERROR WAS MADE IN THE TELEGRAPHIC MODIFICATION AS TO THE PRICE FOR ITEM 5, AS ALLEGED. THE BID ON THAT ITEM WOULD NOT BE LOW IF CORRECTED TO THE INTENDED PRICE. ACCORDINGLY, YOU ARE ADVISED THAT THE BID OF INTERNATIONAL HELICOPTERS ON ITEM 5 SHOULD BE DISREGARDED AND THAT ITS BID ON THE OTHER ITEMS MAY BE CONSIDERED FOR AWARD.