B-149280, JUN. 29, 1962

B-149280: Jun 29, 1962

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TO DEPARTMENT OF THE INTERIOR: REFERENCE IS MADE TO YOUR LETTER OF JUNE 21. THE WORK WAS DIVIDED INTO THREE SCHEDULES. TWELVE BIDS WERE RECEIVED. 385.70 WAS SUBMITTED BY MR. THE GOVERNMENT ENGINEER'S ESTIMATE FOR THE WORK WAS $758. EACH OF THE TWO LOW BIDDERS STIPULATED THAT HIS PRICES WERE CONDITIONED UPON BEING AWARDED ALL OF THE WORK COVERED BY THE THREE SCHEDULES. SHARPE ALLEGES THAT AFTER THESE TWO SETS OF FIGURES WERE COMPUTED. WHO WAS RECEIVING BID QUOTATIONS FOR MATERIALS IN THAT AREA. SINCE THERE WERE NO PRICE CHANGES IN MATERIALS UP TO THE TIME THE BID WAS TO BE SUBMITTED. THE EVIDENCE FURNISHED MAY BE ACCEPTED AS ESTABLISHING A MISTAKE IN BID BUT IT IS NOT CLEARLY ESTABLISHED AS TO WHAT THE BID WOULD HAVE BEEN IF NO MISTAKE HAD BEEN MADE.

B-149280, JUN. 29, 1962

TO DEPARTMENT OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 21, 1962, FILE D-150, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH REGARD TO THE BID OF MR. RANDALL H. SHARPE SUBMITTED IN RESPONSE TO AN INVITATION FOR BIDS ON SPECIFICATIONS NO. DC-5752.

THE INVITATION REQUESTED BIDS--- TO BE OPENED ON MAY 24, 1962--- FOR THE CONSTRUCTION OF THE AVONDALE, DALTON GARDENS, AND HAYDEN LAKE PIPE REHABILITATION, IN IDAHO. THE WORK WAS DIVIDED INTO THREE SCHEDULES. TWELVE BIDS WERE RECEIVED. THE LOW BID OF $603,385.70 WAS SUBMITTED BY MR. RANDALL H. SHARPE. THE SECOND LOW BIDDER SUBMITTED A BID IN THE AMOUNT OF $726,697. THE OTHER BIDS RANGED TO A HIGH OF $964,966.50. THE GOVERNMENT ENGINEER'S ESTIMATE FOR THE WORK WAS $758,729. EACH OF THE TWO LOW BIDDERS STIPULATED THAT HIS PRICES WERE CONDITIONED UPON BEING AWARDED ALL OF THE WORK COVERED BY THE THREE SCHEDULES.

AFTER THE OPENING OF BIDS MR. SHARPE SENT A TELEGRAM TO THE CONTRACTING OFFICE ON JUNE 6, 1962, STATING THAT HE HAD MADE AN ERROR IN HIS BID. WITH HIS LETTER OF JUNE 12, 1962, HE SUBMITTED HIS NOTARIZED STATEMENT OF THE SAME DATE TO THE EFFECT THAT HIS JOB ESTIMATES NORMALLY CONSIST OF ONE SET OF SHEETS SHOWING JOB COSTS, LABOR AND MATERIAL, AND "ONE SET OF SHEETS SHOWING JOB COST PLUS INDIRECT COSTS SUCH AS OVERHEAD, PROFIT AND BOND AND PERCENTAGE USED ADDED TO EACH INDIVIDUAL ITEM.' IN THIS STATEMENT MR. SHARPE ALLEGES THAT AFTER THESE TWO SETS OF FIGURES WERE COMPUTED, HE SENT THEM TO MR. RAY KREOGER AT SPOKANE, WASHINGTON, WHO WAS RECEIVING BID QUOTATIONS FOR MATERIALS IN THAT AREA. SINCE THERE WERE NO PRICE CHANGES IN MATERIALS UP TO THE TIME THE BID WAS TO BE SUBMITTED, MR. KREOGER FILLED IN THE BID FORMS BUT ERRONEOUSLY USED THE JOB COST SHEET FIGURES INSTEAD OF THE FIGURES ON THE TOTAL BID SHEETS, THEREBY CAUSING AN OMISSION OF OVERHEAD, PROFIT AND BOND COST. MR. SHARPE HAS SUBMITTED NOTARIZED COPIES OF THE TWO SETS OF SHEETS MENTIONED IN HIS LETTER OF JUNE 12, 1962. HE REQUESTS THAT HIS BID BE CORRECTED TO INCLUDE THE AMOUNT OF THE OMISSION OR THAT HE BE ALLOWED TO WITHDRAW HIS BID.

THE EVIDENCE FURNISHED MAY BE ACCEPTED AS ESTABLISHING A MISTAKE IN BID BUT IT IS NOT CLEARLY ESTABLISHED AS TO WHAT THE BID WOULD HAVE BEEN IF NO MISTAKE HAD BEEN MADE.

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