B-126488, JAN. 26, 1956
Highlights
ATOMIC ENERGY COMMISSION: REFERENCE IS MADE TO LETTER OF JANUARY 24. THE ENGINEERING ESTIMATE OF THE COST WAS $206. WHERE THE FINAL AMOUNT TO BE QUOTED WAS COMPLETED. THERE WERE OMITTED THE SUMS OF $4. THERE APPEARS NO DOUBT THAT AN ERROR WAS IN FACT MADE IN THE BID AS ALLEGED. SINCE ERROR WAS ALLEGED AND EVIDENCE WAS SUBMITTED ESTABLISHING THE ERROR PRIOR TO AWARD. THE CORPORATION HAS BEEN ADVISED THAT ITS BID IS TO BE DISREGARDED. THE CORPORATION'S BID FORWARDED WITH THE LETTER OF JANUARY 24 IS RETURNED. THE OTHER PAPERS ARE BEING RETAINED HERE.
B-126488, JAN. 26, 1956
TO HONORABLE LEWIS L. STRAUSS, CHAIRMAN, U.S. ATOMIC ENERGY COMMISSION:
REFERENCE IS MADE TO LETTER OF JANUARY 24, 1956, FROM THE GENERAL MANAGER OF YOUR COMMISSION, FILE FAC:CGC, FURNISHING A REPORT RELATIVE TO THE REQUEST OF MALAN CONSTRUCTION CORPORATION, LONG ISLAND CITY, NEW YORK, TO BE RELEASED FROM OBLIGATION UNDER ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. 401-56-3A, ISSUED BY THE OAK RIDGE OPERATIONS OFFICE, OAK RIDGE, TENNESSEE.
THE INVITATION REQUESTED BIDS--- TO BE OPENED ON DECEMBER 29, 1955- - FOR THE CONSTRUCTION OF A PROCESS WASTE WATER TREATMENT PLANT AT OAK RIDGE, TENNESSEE. IN RESPONSE TO THE INVITATION, MALAN CONSTRUCTION CORPORATION SUBMITTED A BID IN THE TOTAL AMOUNT OF $184,820. THE FIVE OTHER BIDS RECEIVED RANGED FROM $215,816 TO $257,430. THE ENGINEERING ESTIMATE OF THE COST WAS $206,727.
BY TELEGRAM AND LETTER OF JANUARY 3, 1956, MALAN CONSTRUCTION CORPORATION ADVISED THE CONTRACTING OFFICE THAT AN ERROR HAD BEEN MADE IN ITS BID AND REQUESTED TO BE RELIEVED FROM OBLIGATION UNDER THE BID. THE CORPORATION SUBMITTED IN SUPPORT OF THE ALLEGED ERROR THE ORIGINALS OF ITS TWO MAIN SUMMARY WORKSHEETS, WITH THE EXPLANATION THAT IN CARRYING FORWARD THE VARIOUS ITEMS OF COST FROM SUMMARY WORKSHEET A TO SUMMARY WORKSHEET B, WHERE THE FINAL AMOUNT TO BE QUOTED WAS COMPLETED, THERE WERE OMITTED THE SUMS OF $4,825 COVERING "HEATING," $36,620 COVERING THE "MECHANICAL EQUIPMENT," AND THE MECHANICAL SUBCONTRACTORS' PERCENTAGE ON THE TWO AMOUNTS.
ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO DOUBT THAT AN ERROR WAS IN FACT MADE IN THE BID AS ALLEGED. ACCORDINGLY, SINCE ERROR WAS ALLEGED AND EVIDENCE WAS SUBMITTED ESTABLISHING THE ERROR PRIOR TO AWARD, THE BID OF MALAN CONSTRUCTION COMPETITION SHOULD BE DISREGARDED AS RECOMMENDED BY YOUR GENERAL MANAGER.
THE CORPORATION HAS BEEN ADVISED THAT ITS BID IS TO BE DISREGARDED.
THE CORPORATION'S BID FORWARDED WITH THE LETTER OF JANUARY 24 IS RETURNED. THE OTHER PAPERS ARE BEING RETAINED HERE.