B-165660, DEC. 4, 1968

B-165660: Dec 4, 1968

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SECRETARY: REFERENCE IS MADE TO A LETTER DATED NOVEMBER 19. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY ALL- AMERICAN OUTDOOR SEATING COMPANY TO HAVE BEEN MADE IN ITS BID UPON WHICH PURCHASE ORDER NO. 602-93 IS BASED. CERTAIN SPECIFICATIONS AND DRAWINGS WERE ATTACHED TO THE INVITATION. THE LOW BID OF THE COMPANY WAS ACCEPTED AS TO ITEMS 1 AND 2 ON AUGUST 26. THE COMPANY STATED THAT THE CORRECT AGGREGATE TOTAL PRICE FOR THE PICNIC TABLES AND LUMBER IS $16. 053 IS APPROXIMATELY TWO-THIRDS OF THE NEXT LOWEST RESPONSIVE BID RECEIVED ON THE TABLES AND LUMBER. IT APPEARS THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN AWARE OF THE PROBABILITY OF ERROR IN THE COMPANY'S BID AND.

B-165660, DEC. 4, 1968

TO MR. SECRETARY:

REFERENCE IS MADE TO A LETTER DATED NOVEMBER 19, 1968, WITH ENCLOSURES, FROM THE DEPUTY ASSISTANT SECRETARY FOR ADMINISTRATION, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR ALLEGED BY ALL- AMERICAN OUTDOOR SEATING COMPANY TO HAVE BEEN MADE IN ITS BID UPON WHICH PURCHASE ORDER NO. 602-93 IS BASED.

THE NATIONAL PARK SERVICE, LAKE MEAD NATIONAL RECREATION AREA, BOULDER CITY, NEVADA, BY SOLICITATION NO. 69-1 REQUESTED BIDS FOR FURNISHING 355 PICNIC TABLES AND 26 SETS OF LUMBER WITH FIVE PIECES PER SET. CERTAIN SPECIFICATIONS AND DRAWINGS WERE ATTACHED TO THE INVITATION. IN RESPONSE, ALL-AMERICAN OUTDOOR SEATING COMPANY SUBMITTED A BID DATED AUGUST 12, 1968, WHEREIN IT OFFERED TO FURNISH THE PICNIC TABLES AND SETS OF LUMBER DESCRIBED UNDER ITEMS 1 AND 2 AT AN AGGREGATE TOTAL PRICE OF $12,053. THE LOW BID OF THE COMPANY WAS ACCEPTED AS TO ITEMS 1 AND 2 ON AUGUST 26, 1968.

BY LETTER DATED SEPTEMBER 17, 1968, ALL-AMERICAN OUTDOOR SEATING COMPANY ADVISED THE CONTRACTING OFFICER THAT AN ERROR HAD BEEN MADE IN ITS BID IN THAT IT HAD ERRONEOUSLY COMPUTED ITS BID PRICES ON THE BASIS OF USING "CONSTRUCTION GRADE HEART REDWOOD" INSTEAD OF "CLEAR HEART REDWOOD" AS REQUIRED BY THE SPECIFICATIONS. THE COMPANY STATED THAT IN READING THE INVITATION FOR BIDS IT OVERLOOKED THE SHEET CONTAINING THE SPECIFICATIONS WHICH CALLED FOR THE USE OF CLEAR HEART REDWOOD; THAT IN COMPUTING ITS BID PRICES IT REFERRED TO THE DRAWINGS WHICH CONTAINED THE FOLLOWING NOTE: "TABLE TOP AND SEAT TO BE MADE FROM HEART REDWOOD ONLY"; AND THAT IT DECIDED TO USE CONSTRUCTION HEART REDWOOD IN THE CONSTRUCTION OF THE TABLES. THE COMPANY REQUESTED THAT THE PURCHASE ORDER BE CANCELED OR THAT IT BE PERMITTED TO RECOMPUTE ITS BID PRICES ON THE BASIS OF USING CLEAR HEART REDWOOD INSTEAD OF CONSTRUCTION GRADE HEART REDWOOD. THE COMPANY ALSO SUGGESTED THE SUBSTITUTION OF NO. 1 DENSE SOUTHERN PINE FOR CLEAR HEART REDWOOD. IN A LETTER DATED OCTOBER 22, 1968, THE COMPANY STATED THAT THE CORRECT AGGREGATE TOTAL PRICE FOR THE PICNIC TABLES AND LUMBER IS $16,607 CONSISTING OF $15,957 FOR THE TABLES AND $650 FOR THE LUMBER. SUPPORT OF ITS ALLEGATION OF ERROR, THE COMPANY SUBMITTED A PHOTOSTATIC COPY OF ITS ORIGINAL ESTIMATE SHEET AND COPIES OF QUOTATIONS RECEIVED FROM ITS LUMBER SUPPLIERS.

THE ABSTRACT OF BIDS SHOWS THAT THE SEVEN OTHER RESPONSIVE AGGREGATE TOTAL BIDS ON THE PICNIC TABLES AND LUMBER RANGED FROM $18,873.55 TO $60,170. IN VIEW OF THE FACT THAT THE ALL-AMERICAN BID OF $12,053 IS APPROXIMATELY TWO-THIRDS OF THE NEXT LOWEST RESPONSIVE BID RECEIVED ON THE TABLES AND LUMBER, IT APPEARS THAT THE CONTRACTING OFFICER SHOULD HAVE BEEN AWARE OF THE PROBABILITY OF ERROR IN THE COMPANY'S BID AND, CONSEQUENTLY, THE BID OF ALL-AMERICAN SHOULD NOT HAVE BEEN ACCEPTED WITHOUT VERIFICATION OF ITS BID PRICES.

IT IS REPORTED THAT THE PURCHASE ORDER HAS BEEN RETURNED TO THE CONTRACTING OFFICE BY THE COMPANY'S ATTORNEY AND THAT NO DELIVERIES HAVE BEEN MADE BY THE COMPANY. ACCORDINGLY, PURCHASE ORDER NO. 60293 MAY BE CANCELED WITHOUT LIABILITY TO THE ALL-AMERICAN OUTDOOR SEATING COMPANY.

THE DOCUMENTS SUBMITTED WITH THE DEPUTY ASSISTANT SECRETARY'S LETTER OF NOVEMBER 19, 1968, ARE RETURNED AS REQUESTED.