B-152787, NOV. 19, 1963

B-152787: Nov 19, 1963

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED OCTOBER 28. TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. DA 44-055-AII-1280 IS BASED. IT IS REPORTED THAT ALL BUILDINGS ON THE SCHEDULE ARE UNIFORM WAREHOUSE-TYPE BUILDINGS OF TWO OR THREE SECTIONS. THE THREE OTHER BASE BIDS ON THE WORK WERE IN THE AMOUNTS OF $32. 576.50 FOR THE WORK COVERED BY THE BASE BID AND ADDITIVES 1 THROUGH 5 WAS AWARDED TO J.T. IT IS REPORTED THAT ON JULY 1. SANDERSON WAS REQUESTED TO SUBMIT A WRITTEN STATEMENT EXPLAINING THE ERROR AND ANY EVIDENCE IN SUPPORT THEREOF. 877.50 WAS MADE IN COMPUTING HIS BASE BID PRICE. SANDERSON ADVISED THAT HE WOULD BE WILLING TO PERFORM THE CONTRACT WORK IF THE CONTRACT PRICE WAS INCREASED BY THE SUM OF $4.

B-152787, NOV. 19, 1963

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 28, 1963, WITH ENCLOSURES, FROM THE ASSISTANT DIRECTOR OF PROCUREMENT, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY J.T. SANDERSON COMPANY, PETERSBURG, VIRGINIA, TO HAVE BEEN MADE IN ITS BID ON WHICH CONTRACT NO. DA 44-055-AII-1280 IS BASED.

THE PURCHASING AND CONTRACTING OFFICE, FORT LEE, VIRGINIA, BY INVITATION NO. AII 44-055-63-77, REQUESTED BIDS FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK NECESSARY FOR THE REROOFING OF 12 WAREHOUSE BUILDINGS LOCATED AT FORT LEE, VIRGINIA, IN ACCORDANCE WITH TECHNICAL REQUIREMENTS (PR 4-62, REV. I) DATED DECEMBER 13, 1962. IT IS REPORTED THAT ALL BUILDINGS ON THE SCHEDULE ARE UNIFORM WAREHOUSE-TYPE BUILDINGS OF TWO OR THREE SECTIONS. IN RESPONSE J.T. SANDERSON COMPANY SUBMITTED A BID DATED JUNE 28, 1963, AS FOLLOWS:

CHART

"SCHEDULE OF BID ITEMS ITEM NO. DESCRIPTION 1. BASE BID: REROOFING OF TEN (10) BUILDINGS,

T-7104 (2 SECTION ON SW END ONLY, T-7107,

T-7108, T-7109 (SW END ONLY), T-7111,

T-7112, T-7114, T-7119, T-7120, AND

T-7121 (NE END ONLY). $ 27,224.50 2. ADDITIVE NO. 1: REROOFING OF BUILDING

T-7122. $ 3,965.00 3. ADDITIVE NO. 2: REROOFING OF BUILDING

T-7126. $ 4,027.00 4. ADDITIVE NO. 3: REPLACEMENT OF DETERIORATED

SHEATHING BOARDS. ESTIMATED QUANTITY

1200 BD. FT. $ 0.40

PER BD. FT. 5. ADDITIVE NO. 4: REPLACEMENT OF DETERIORATED

RAFTERS, RAFTER ENDS AND HEADERS.

ESTIMATED QUANTITY 1200 BD. FT. $ 0.55

PER BD. FT. 6. ADDITIVE NO. 5: REPLACEMENT OF DETERIORATED

FACIA BOARDS AND CORNER BOARDS. ESTIMATED

QUANTITY 400 BD. FT. $ 0.55

PER BD. FT.'

THE THREE OTHER BASE BIDS ON THE WORK WERE IN THE AMOUNTS OF $32,195, $34,500 AND $57,071. ON JUNE 29, 1963, A CONTRACT IN THE AMOUNT OF $36,576.50 FOR THE WORK COVERED BY THE BASE BID AND ADDITIVES 1 THROUGH 5 WAS AWARDED TO J.T. SANDERSON COMPANY.

IT IS REPORTED THAT ON JULY 1, 1963, MR. SANDERSON ORALLY ALLEGED THAT HE HAD MADE AN ERROR IN HIS BID ON THE REROOFING WORK. MR. SANDERSON WAS REQUESTED TO SUBMIT A WRITTEN STATEMENT EXPLAINING THE ERROR AND ANY EVIDENCE IN SUPPORT THEREOF. IN A CONFIRMING LETTER DATED JULY 1, 1963, MR. SANDERSON STATED THAT HE HAD MISINTERPRETED THE SPECIFICATIONS IN THAT HE HAD BASED HIS BASE BID PRICE ON THE REROOFING OF ONLY THE SOUTHWEST END OF THE BUILDINGS T-7107, T-7108 AND T-7109 AND ON ONLY THE REROOFING OF THE NORTHEAST END OF BUILDINGS T-7111, T-7112, T-7114, T-7119, T-7120 AND T-7121. MR. SANDERSON ALLEGED THAT AN ERROR OF $13,877.50 WAS MADE IN COMPUTING HIS BASE BID PRICE. IN SUPPORT OF HIS ALLEGATION OF ERROR, MR. SANDERSON SUBMITTED HIS WORKSHEETS.

BY LETTER DATED JULY 30, 1963, MR. SANDERSON ADVISED THAT HE WOULD BE WILLING TO PERFORM THE CONTRACT WORK IF THE CONTRACT PRICE WAS INCREASED BY THE SUM OF $4,000 TO $40,576.50. THE REVISED PRICE OF $40,576.50 WOULD BE $688.50 LOWER THAN THE AMOUNT OF THE NEXT LOW BID AND $5,303.50 BELOW THE AMOUNT OF THE GOVERNMENT'S ESTIMATE OF THE COST OF THE PROJECT.

IN HIS REPORT THE CONTRACTING OFFICER STATES THAT AN EXAMINATION OF THE WORKSHEETS SUBMITTED BY MR. SANDERSON INDICATES THAT HE FAILED TO INCLUDE IN HIS BASE BID PRICE THE COST OF REROOFING 7 SECTIONS OF THE WAREHOUSE BUILDINGS AND THAT THE INTENT OF THE GOVERNMENT WAS TO ELICIT A BASE BID FOR THE REROOFING OF 18 SECTIONS OF BUILDINGS. IN REGARD TO THE DOLLAR AMOUNT OF THE ALLEGED ERROR, THE CONTRACTING OFFICER STATES THAT THE AMOUNT SHOULD BE SHOWN AS BEING $8,685.50 INSTEAD OF $13,877.50, AS ALLEGED BY MR. SANDERSON BECAUSE THE COMPANY'S WORKSHEETS SHOW THAT THE PRICES FOR ADDITIVE NO. 2 (REROOFING OF BUILDING T-7126) AND CERTAIN OTHER ADDITIVES WERE INCLUDED IN THE COMPANY'S BASE BID PRICE.

WE AGREE WITH THE CONTRACTING OFFICER THAT THE MANNER IN WHICH THE BUILDINGS WERE LISTED IN THE DESCRIPTION OF THE BASE BID WAS TO SOME DEGREE MISLEADING AND SUBJECT TO POSSIBLE MISINTERPRETATION.

ON THE RECORD THERE IS NO ROOM FOR DOUBT THAT THE COMPANY IN COMPUTING ITS BASE BID PRICE UNDERESTIMATED THE NUMBER OF SECTIONS OF THE BUILDINGS TO BE REROOFED. HOWEVER, THE RECORD IS NOT CLEAR AS TO WHAT THE CONTRACTOR WOULD HAVE BID EXCEPT FOR THE ERROR. ACCORDINGLY, THE CONTRACT MAY BE CANCELED WITHOUT LIABILITY TO EITHER PARTY.