B-152950, DEC. 20, 1963

B-152950, DEC. 20, 1963

TO COMMANDANT, THE COAST GUARD:

WE REFER TO A LETTER DATED NOVEMBER 20, 1963, FROM THE ACTING COMMANDANT, UNITED STATES COAST GUARD, REQUESTING OUR DECISION CONCERNING A PROPOSED PRICE ADJUSTMENT IN CONTRACT NO. TO3CG-3179, DATED JUNE 28, 1962, AWARDED TO J. J. NUGENT COMPANY, P.O. BOX 253, NORTHFIELD, NEW JERSEY, FOR THE CONSTRUCTION OF A LORAN "C" TRANSMITTER BUILDING INCLUDING ACCESSORIES AND ASSOCIATED UTILITIES AT THE UNITED STATES COAST GUARD ELECTRONIC ENGINEERING STATION LOCATED AT WILDWOOD, NEW JERSEY. THE PROPOSED ADJUSTMENT IS $4,200 WHICH REPRESENTS THE COST OF A SHIELDED TIMER ROOM FURNISHED BY THE CONTRACTOR IN THE CONSTRUCTION OF THE ABOVE PROJECT.

ON MAY 31, 1962, THE UNITED STATES COAST GUARD ISSUED INVITATION FOR BIDS NO. 03-38413-62 WITH FOUR ADDENDA FOR THE CONSTRUCTION OF THE PROJECT AT WILDWOOD, NEW JERSEY. IN RESPONSE TO THE INVITATION, THE FOLLOWING BIDS WERE RECEIVED FOR CONSTRUCTION OF THE WILDWOOD PROJECT: J. J. NUGENT COMPANY, $120,000; ARNOLD M. DIAMOND, $148,496; CAMPI CONSTRUCTION COMPANY, $154,460; AND SEYBOLD ENGINEERING, $155,403. BIDS WERE OPENED ON JUNE 25, 1962. IN RESPONSE TO THE CONTRACTING OFFICER'S REQUEST, J. J. NUGENT COMPANY VERIFIED ITS BID ON JUNE 26, 1962. ON JUNE 28, 1962, THE CONTRACT FOR THE CONSTRUCTION OF THE PROJECT AT WILDWOOD, NEW JERSEY, WAS AWARDED TO J. J. NUGENT COMPANY. CLAUSE 7 OF THE "ADDITIONAL GENERAL PROVISIONS (CONSTRUCTION CONTRACTS -- SHORE STRUCTURES)" PROVIDED IN PART AS FOLLOWS:

"7. COORDINATION OF SPECIFICATIONS AND DRAWING

"IF THERE IS ANY DISCREPANCY BETWEEN THE DRAWINGS AND FIGURES WRITTEN THEREON, THE FIGURES ARE TO BE CONSIDERED AS CORRECT. IN CASE THERE IS ANY DISCREPANCY BETWEEN THE DRAWINGS AND SPECIFICATIONS, THE INFORMATION CONTAINED IN THE SPECIFICATIONS SHALL TAKE PRECEDENCE OVER THAT SHOWN ON THE DRAWINGS. * * *"

THE DRAWINGS FOR THE COAST GUARD PROJECT AT WILDWOOD, NEW JERSEY, WERE DRAFTED PRIOR TO THE SPECIFICATIONS. AT THE TIME THE DRAWINGS WERE DRAFTED THE COAST GUARD INTENDED TO PURCHASE A NUMBER OF SCREENED TIMER ROOMS AND ALSO INTENDED TO FURNISH THE SCREENED TIMER ROOM REQUIRED IN THE WILDWOOD, NEW JERSEY, PROJECT. CONSEQUENTLY, DRAWING NO. 107626, SHEET 17, OF THE WILDWOOD, NEW JERSEY, PLANS INDICATED THAT THE SCREENED TIMER ROOM WOULD BE GOVERNMENT-FURNISHED EQUIPMENT (GFE). SUBSEQUENT TO DRAFTING THE PLANS FOR THE WILDWOOD, NEW JERSEY, PROJECT THE COAST GUARD DETERMINED THAT IT WOULD BE MORE FEASIBLE IF THE CONTRACTOR FURNISHED THE SCREENED TIMER ROOM. PART IV, PARAGRAPH 2 (MATERIALS AND EQUIPMENT), SECTION "A," OF THE SPECIFICATIONS FOR THE WILDWOOD PROJECT ENTITLED "ELECTRONICS AND ANTENNA GROUND SYSTEMS" WAS AMENDED TO REFLECT THIS CHANGE AND TO PROVIDE THAT THE "SHIELDED TIMER ROOM SHALL BE FURNISHED BY THE CONTRACTOR FOR INSTALLATION AS SPECIFIED.' SHEET 17 OF DRAWING NO. 107626 REMAINED UNCHANGED AND CONTINUED TO STATE THAT THE SCREENED TIMER ROOM WOULD BE GOVERNMENT FURNISHED EQUIPMENT.

ON JULY 7, 1962, J. J. NUGENT COMPANY ADVISED THE CONTRACTING OFFICER OF AN ERROR IN BID. THE ALLEGED ERROR WAS THAT THE COST OF FURNISHING THE TIMER ROOM WAS NOT INCLUDED IN THE J. J. NUGENT COMPANY BID AND IN THIS REGARD THAT THE PROPOSAL TO J. J. NUGENT COMPANY FROM JOCAL ELECTRIC COMPANY, INC., THE ELECTRICAL SUBCONTRACTOR FOR THIS PROJECT, DID NOT INCLUDE THE COST OF FURNISHING THE SCREENED TIMER ROOM. THE BASIS FOR THIS OMISSION BY JOCAL ELECTRIC COMPANY IN THE PROPOSAL TO J. J. NUGENT COMPANY WAS STATED TO BE THAT THE SUBCONTRACTOR RELIED ON THE DRAWINGS IN PREPARING ITS PROPOSAL, WHICH INDICATED THAT THE SCREENED TIMER ROOM WOULD BE GOVERNMENT-FURNISHED EQUIPMENT. WITH ITS LETTER OF JULY 7, 1962, J. J. NUGENT COMPANY ENCLOSED THE MATERIAL LIST WHICH WAS THE BASIS OF THE SUBCONTRACTOR'S PROPOSAL, WHICH INDICATED THAT THE COST OF FURNISHING THE SCREENED TIMER ROOM WAS NOT INCLUDED IN JOCAL ELECTRIC COMPANY'S PROPOSAL TO J. J. NUGENT COMPANY.

J. J. NUGENT COMPANY'S LETTER OF JULY 7, 1962, WAS ACKNOWLEDGED BY THE CONTRACTING OFFICER ON JULY 16, 1962. THE CONTRACTING OFFICER'S LETTER ADVISED J. J. NUGENT COMPANY OF CLAUSE 7 OF THE ADDITIONAL GENERAL PROVISIONS (CONSTRUCTION CONTRACTS--- SHORE STRUCTURES) OF THIS CONTRACT, QUOTED ABOVE, AND REQUESTED THAT IN VIEW OF THE SHORT TIME LIMIT FOR COMPLETION OF THIS CONTRACT J. J. NUGENT COMPANY CONTINUE WITH WORK ON THE PROJECT. THE CONTRACTING OFFICER'S LETTER ALSO INFORMED J. J. NUGENT COMPANY THAT THE MATTER OF THE $4,200 ADJUSTMENT WOULD BE SUBMITTED TO THIS OFFICE BY COAST GUARD HEADQUARTERS UPON THE CONTRACTOR'S COMPLETION OF THE PROJECT AT WILDWOOD, NEW JERSEY.

ON MAY 28, 1963, J. J. NUGENT COMPANY REITERATED ITS CLAIM FOR THE COST OF THE SHIELDED TIMER ROOM. ON JUNE 3, 1963, THE CONTRACTING OFFICER REQUESTED THAT J. J. NUGENT COMPANY FORWARD AN AFFIDAVIT ATTESTING THAT THE MATERIAL LIST FROM JOCAL ELECTRIC COMPANY WAS THE ORIGINAL LIST WHICH WAS THE BASIS OF JOCAL ELECTRIC COMPANY'S PROPOSAL TO J. J. NUGENT COMPANY; A STATEMENT WHETHER JOCAL ELECTRIC COMPANY HAD BOTH SPECIFICATION AND PLANS AVAILABLE IN PREPARING ITS ESTIMATE; AND A PAID INVOICE FOR THE SHIELDED TIMER ROOM. ON JUNE 12, 1963, J. J. NUGENT COMPANY FURNISHED THE INFORMATION REQUESTED BY THE CONTRACTING OFFICER'S LETTER OF JUNE 3, 1963. A LETTER FROM JOCAL ELECTRIC COMPANY TO J. J. NUGENT COMPANY DATED JUNE 10, 1963, INDICATES THAT JOCAL ELECTRIC COMPANY HAD BOTH THE SPECIFICATIONS AND PLANS AVAILABLE IN PREPARING ITS ESTIMATE FOR THIS PROJECT. THE PAID INVOICE TO J. J. NUGENT COMPANY FROM FILTRON COMPANY, INC., DATED DECEMBER 3, 1962, INDICATES THAT THE SHIELDED TIMER ROOM COST $4,200. IN THIS REGARD YOUR REPORT STATES THAT BASED ON PRIOR PROCUREMENTS BY COAST GUARD OF THIS ITEM, $4,200 IS CONSIDERED A FAIR PRICE FOR A SHIELDED TIMER ROOM.

IN VIEW OF THE FACTS AND CIRCUMSTANCES OUTLINED ABOVE CONCERNING THIS CONTRACT, J. J. NUGENT COMPANY MAY BE PAID AN ADDITIONAL $4,200 AS ADMINISTRATIVELY RECOMMENDED.

WE ARE RETURNING THE FILE EXCEPT FOR THE CONTRACTING OFFICER'S STATEMENT OF FACTS AND THE STATEMENT FROM THE ACTING COMMANDANT OF THE COAST GUARD, AS REQUESTED.