B-156267, AUG. 13, 1965

B-156267, AUG. 13, 1965

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED MAY 12, 1965, FROM THE DIRECTOR OF PROCUREMENT, FURNISHING A REPORT ON THE REQUEST OF H. CARROLL LEE CONSTRUCTION COMPANY FOR RELIEF IN CONNECTION WITH AN ERROR ALLEGED TO HAVE BEEN MADE IN ITS BID UNDER CONTRACT NO. DA 41-014-AIV-3690.

THE INVITATION INVOLVED REQUESTED LUMP-SUM BIDS FOR ALTERATIONS TO BUILDING NO. S-7112, WILLIAM BEAUMONT GENERAL HOSPITAL, FORT BLISS, TEXAS. THE SIX BIDS RECEIVED WERE OPENED AT 10:00 A.M. ON JUNE 29, 1964. H. CARROLL LEE CONSTRUCTION COMPANY WAS THE LOW BIDDER AT $18,890. THE OTHER FIVE BIDS WERE IN THE AMOUNTS OF $21,762, $22,285, $23,960, $24,834, AND $25,130. THE GOVERNMENT'S ESTIMATE WAS $21,368. FOLLOWING THE OPENING OF THE BIDS MR. H. CARROLL LEE,"OWNER" OF H. CARROLL LEE CONSTRUCTION COMPANY APPARENTLY VERBALLY CONFIRMED HIS BID. THEREAFTER, THE BID WAS ACCEPTED AND NOTICE OF AWARD WAS DISPATCHED BY REGISTERED MAIL AT 10:45 A.M. ON JUNE 30, 1964.

AT APPROXIMATELY 11:30 A.M. ON JUNE 30, 1964, APPARENTLY PRIOR TO RECEIPT OF THE NOTICE OF AWARD, MR. LEE PERSONALLY APPEARED BEFORE THE CONTRACTING OFFICER AND ADVISED THAT HE HAD EXAMINED HIS WORK SHEETS, SUPPLIER'S QUOTATIONS, ETC., AND FOUND THAT HE HAD FAILED TO INCLUDE IN HIS BID PRICE THE COST OF "HARDBOARD UNDERPAYMENT," OR $1,554.56. MR. LEE STATES HIS PURPOSE WAS TO ASK PERMISSION TO WITHDRAW THE BID BUT HE WAS ADVISED BY THE CONTRACTING OFFICER THAT THE CONTRACT HAD BEEN WRITTEN ON JUNE 29 AND WAS THEN IN THE MAIL TO HIM, SO THAT THE ONLY THING LEFT TO DO WAS TO FILE A REQUEST FOR RELIEF DUE TO ERROR. MR. LEE DESCRIBED THE ERROR IN DETAIL AND SHOWED ORIGINAL WORK SHEETS AND SUPPLIER'S QUOTATIONS. THERE APPEARS NO ROOM FOR DOUBT THAT MR. LEE, IN FACT, MADE AN ERROR IN HIS BID AS ALLEGED.

IN VIEW OF THE UNUSUAL CIRCUMSTANCES PRESENTED IN THIS CASE, AND SINCE THE EVIDENCE IN THE RECORD CLEARLY AND CONVINCINGLY ESTABLISHED THE EXISTENCE OF THE ERROR, THE DIRECTOR OF PROCUREMENT HAS RECOMMENDED THAT MR. LEE'S REQUEST FOR RELIEF BE GRANTED. IN SUPPORT OF SUCH RECOMMENDATION, IT IS STATED THAT THE VERBAL VERIFICATION OF THE BID OBVIOUSLY TOOK PLACE BEFORE MR. LEE HAD HAD A REASONABLE OPPORTUNITY TO CHECK HIS WORK SHEETS; THAT MR. LEE WAS NOT DILATORY IN CALLING THE ALLEGED ERROR TO THE ATTENTION OF THE CONTRACTING OFFICER; THAT NOTICE OF AWARD WAS ISSUED WITHIN SUCH A SHORT TIME AFTER BID OPENING THAT LESS THAN THE NORMAL PERIOD WAS AVAILABLE FOR A BONA FIDE BID VERIFICATION; AND THAT HAD THIS PROCUREMENT TAKEN PLACE AT A TIME OTHER THAN AT THE END OF THE FISCAL YEAR, MR. LEE'S ALLEGATION OF ERROR WOULD NO DOUBT HAVE BEEN RECEIVED PRIOR TO AWARD AND THUS BEEN CONSIDERED AS A MISTAKE IN BID PRIOR TO AWARD IN ACCORDANCE WITH ASPR 2-406.4.

WE AGREE WITH THE RECOMMENDATION OF THE DIRECTOR OF PROCUREMENT. ACCORDINGLY, CONTRACT NO. DA 41-014-AIV-3690 WITH H. CARROLL LEE CONSTRUCTION COMPANY MAY BE AMENDED TO INCREASE THE CONSIDERATION SPECIFIED THEREIN BY $1,554.56 TO COMPENSATE FOR THE ERROR MADE IN THE BID UPON WHICH SAID CONTRACT IS BASED.