B-172905, JUN 2, 1971

B-172905: Jun 2, 1971

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WHITE: REFERENCE IS MADE TO LETTER OF MAY 6. FIVE BIDS WERE SUBMITTED AND OPENED ON APRIL 23. (GE) WAS $11. A REPRESENTATIVE OF GE'S SUPPLIER OF THE RELAYS AND TRANSFER SWITCHES INDICATED THE POSSIBILITY OF A MISTAKE IN THE GE BID SINCE THE ENTIRE BID PRICE WAS LESS THAN THE COST OF THE RELAYS AND TRANSFER SWITCHES ALONE. PRICE VERIFICATION WAS REQUESTED FROM GE. AT WHICH TIME AN ERROR WAS DISCOVERED IN THE TRANSPOSITION OF FIGURES FROM THE WORKSHEET TO THE BID FORM. IT IS REPORTED THAT THE INTENDED BID PRICE WAS $18. IS THE AMOUNT ERRONEOUSLY EMPLOYED AS THE FINAL BID. IT IS APPARENT THAT AN ERROR WAS COMMITTED. OUR OFFICE IS IN AGREEMENT WITH THE RECOMMENDATION THAT GE BE PERMITTED TO WITHDRAW ITS BID.

B-172905, JUN 2, 1971

CONTRACTS - WITHDRAWAL OF BID - MISTAKE DECISION THAT GENERAL ELECTRIC SUPPLY CO., DUE TO AN ERROR IN TRANSPOSING FIGURES FROM WORKSHEETS TO BID FORM, MAY BE PERMITTED TO WITHDRAW ITS BID UNDER AN IFB FOR RELAY AND TRANSFER SWITCHES FOR AN ELEVATOR SYSTEM IN THE SENATE OFFICE BUILDING.

TO MR. WHITE:

REFERENCE IS MADE TO LETTER OF MAY 6, 1971, WITH ENCLOSURES, REQUESTING A DECISION WHETHER THE GENERAL ELECTRIC SUPPLY CO. MAY BE PERMITTED TO WITHDRAW THE BID IT SUBMITTED UNDER THE INVITATION FOR BIDS (IFB) ON JOB NO. 7119.

THE IFB CALLED FOR BIDS ON 23 RELAYS AND 14 AUTOMATIC TRANSFER SWITCHES FOR THE EMERGENCY LIGHTING AND ELEVATOR SYSTEM IN THE SENATE OFFICE BUILDING. FIVE BIDS WERE SUBMITTED AND OPENED ON APRIL 23, 1971. THE LOW BID OF GENERAL ELECTRIC SUPPLY CO. (GE) WAS $11,520. THE REMAINING FOUR BIDS RANGED FROM $15,120 TO $16,310.

AT THE BID OPENING, A REPRESENTATIVE OF GE'S SUPPLIER OF THE RELAYS AND TRANSFER SWITCHES INDICATED THE POSSIBILITY OF A MISTAKE IN THE GE BID SINCE THE ENTIRE BID PRICE WAS LESS THAN THE COST OF THE RELAYS AND TRANSFER SWITCHES ALONE. CONSEQUENTLY, PRICE VERIFICATION WAS REQUESTED FROM GE, AT WHICH TIME AN ERROR WAS DISCOVERED IN THE TRANSPOSITION OF FIGURES FROM THE WORKSHEET TO THE BID FORM. IT IS REPORTED THAT THE INTENDED BID PRICE WAS $18,069.94 AND, IN VIEW OF THE ALLEGED ERROR, GE REQUESTED PERMISSION TO WITHDRAW ITS BID.

A COPY OF THE WORKSHEET INDICATES THAT THE PRICE FOR THE THIRD ITEM OF SCHEDULE "B" - "AUTOMATIC TRANSFER SWITCHES" - CALLING FOR EIGHT "AUTOMATIC SWITCH CO. CATALOG NO. 940326045C," WHEN MULTIPLIED BY THE INSERTED UNIT PRICE OF $1,440, IS THE AMOUNT ERRONEOUSLY EMPLOYED AS THE FINAL BID, $11,520, IN LIEU OF THE INCLUDED AMOUNTS OF THE OTHER ITEMS. ON THE BASIS OF THE RECORD AND WORKSHEETS, IT IS APPARENT THAT AN ERROR WAS COMMITTED. ACCORDINGLY, OUR OFFICE IS IN AGREEMENT WITH THE RECOMMENDATION THAT GE BE PERMITTED TO WITHDRAW ITS BID.

FURTHER, OUR OFFICE APPROVES THE RECOMMENDATION THAT YOU PROMULGATE REGULATIONS FOR THE RESOLUTION OF MISTAKES IN BIDS IN THE FOUR CATEGORIES LISTED IN 38 COMP. GEN. 177 (1958) CONSISTENT WITH THE MATERIAL ASPECTS OF SECTION 1-2.406 OF THE FEDERAL PROCUREMENT REGULATIONS.