B-149955, SEP. 27, 1962

B-149955: Sep 27, 1962

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO ARCHITECT OF THE CAPITOL: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 20. THE OTHER THREE BIDS RECEIVED WERE $952. YOU OBSERVE THAT THE LOW BID IS CONSIDERABLY OUT OF LINE WITH THE OTHERS RECEIVED IN THAT IT IS $157. SHORTLY BEFORE BIDS WERE TO BE SUBMITTED. NOTARIZED STATEMENTS FROM THE DORSEY AND REGIONEER FIRMS VERIFY THAT THE QUOTATIONS WERE MADE AS ALLEGED. AN EXAMINATION OF THE BIDDER'S ORIGINAL ESTIMATE SHEET SHOWS THAT AN ERASURE WAS MADE AS ALLEGED. THE LATTER PERCENTAGE BEING THE AMOUNT SHOWN BY ITS ESTIMATE SHEET TO HAVE BEEN ADDED ONTO THE TOTAL ARRIVED AT BY ADDING THE CHARGES FOR ALL THE PARTS OF THE WORK TO BE PERFORMED IN THE JOB. THE BIDDER WILL STILL BE LOW BY $71.

B-149955, SEP. 27, 1962

TO ARCHITECT OF THE CAPITOL:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 20, 1962, REQUESTING TO BE ADVISED WHETHER THERE MAY BE CORRECTED THE LOW BID SUBMITTED BY YOUNG ASSOCIATES, INC., FOR JOB NO. 6241, COVERING THE CONSTRUCTION AND ALTERATION OF PEDESTRIAN TUNNELS FOR THE ADDITIONAL HOUSE OFFICE BUILDING.

YOUNG ASSOCIATES, INC., SUBMITTED A BID FOR THE SUBJECT JOB IN THE AMOUNT OF $794,600. THE OTHER THREE BIDS RECEIVED WERE $952,000, $957,000 AND $998,000. YOU OBSERVE THAT THE LOW BID IS CONSIDERABLY OUT OF LINE WITH THE OTHERS RECEIVED IN THAT IT IS $157,400 UNDER THE NEXT LOW BID.

SUBSEQUENT TO THE OPENING OF BIDS THE LOW BIDDER ALLEGED THAT IT MADE AN ERROR IN ITS BID. IN SUPPORT OF ITS POSITION IT SUBMITTED A NOTARIZED STATEMENT EXPLAINING HOW THE ERROR OCCURRED. IT STATES THAT DURING THE PREPARATION OF ITS BID IT RECEIVED A QUOTATION OF $82,500 FROM FRANK M. DORSEY AND SONS FOR PERFORMING THE PLUMBING, HEATING, VENTILATING AND AIR CONDITIONING WORK INCLUDED IN THE JOB AND IT ENTERED THAT AMOUNT ON ITS ESTIMATE SHEET, BUT SHORTLY BEFORE BIDS WERE TO BE SUBMITTED, IT RECEIVED A QUOTATION OF $78,000 FROM THE REGIONEER CORPORATION FOR THE SAME WORK AND IN THE HASTE OF GETTING ITS BID IN ON TIME IT ERASED THE $82,500 FIGURE ON ITS ESTIMATE SHEET AND INADVERTENTLY FAILED TO ENTER THE $78,000 FIGURE IN THAT PLACE WITH THE RESULT THAT ITS TOTAL BID PRICE DID NOT INCLUDE ANY CHARGE OR A 10 PERCENT PROFIT ITEM FOR THAT PHASE OF THE WORK. NOTARIZED STATEMENTS FROM THE DORSEY AND REGIONEER FIRMS VERIFY THAT THE QUOTATIONS WERE MADE AS ALLEGED. FURTHER, AN EXAMINATION OF THE BIDDER'S ORIGINAL ESTIMATE SHEET SHOWS THAT AN ERASURE WAS MADE AS ALLEGED.

THE BIDDER HAS REQUESTED THAT IT BE PERMITTED TO WITHDRAW ITS BID OR TO CORRECT IT. IF ALLOWED TO CORRECT, IT REQUESTS THAT ITS TOTAL BID PRICE BE CHANGED TO REFLECT THE INCLUSION OF THE $78,000 QUOTATION PLUS 10 PERCENT, THE LATTER PERCENTAGE BEING THE AMOUNT SHOWN BY ITS ESTIMATE SHEET TO HAVE BEEN ADDED ONTO THE TOTAL ARRIVED AT BY ADDING THE CHARGES FOR ALL THE PARTS OF THE WORK TO BE PERFORMED IN THE JOB. YOU POINT OUT THAT EVEN WITH THIS $85,800 CORRECTION, THE BIDDER WILL STILL BE LOW BY $71,600 AND THAT AN AWARD ON THE CORRECTED BASIS WOULD THEREFORE NOT BE PREJUDICIAL TO OTHER BIDDERS.

IN VIEW OF THE FACTS OF THE MATTER, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT YOUNG ASSOCIATES, INC., MADE A BONA FIDE ERROR IN ITS BID. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED AND THE INTENDED BID PRICE FULLY ESTABLISHED BEFORE AWARD, THE BID MAY BE CORRECTED SO AS TO TOTAL THE AMOUNT OF $880,400 AND CONSIDERED FOR AWARD.