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B-144141, OCT. 13, 1960

B-144141 Oct 13, 1960
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VETERANS ADMINISTRATION HOSPITAL: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 30. 192 PLUS $656 FOR ALTERNATE CONTROLS WAS THE LOWEST RECEIVED. A LETTER WAS ADDRESSED TO THE LOW BIDDER REQUESTING INFORMATION REGARDING ITS WORK PERFORMED BY IT DURING THE PAST 10 YEARS. HE WAS ADVISED TO SUBMIT ALL PERTINENT DATA. ADVISED COMFORT THAT THE PRICES QUOTED WERE $3. 850 WAS SHOWN CORRECTLY BUT THE ADDING MACHINE TOTAL FOR THE VARIOUS ITEMS WAS SHOWN AS $25. WHICH WAS REDUCED BY $78 AND THE AMOUNT WAS THEN SHOWN AS $28. 850 WAS ADDED AS $38.50. SINCE THE AMOUNT BID BY COMFORT WAS NOT IN LINE WITH THE OTHER BIDS RECEIVED. THE CONTRACTING OFFICER SHOULD HAVE BEEN ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN THE BID.

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B-144141, OCT. 13, 1960

TO MR. J. J. CAVANAGH, ACTING CHIEF, SUPPLY DIVISION, VETERANS ADMINISTRATION HOSPITAL:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 30, 1960, FILE 5253/134, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN BECAUSE OF AN ALLEGED ERROR IN THE BID OF THE COMFORT COOLING CO., SUBMITTED IN RESPONSE TO AN INVITATION FOR BIDS FOR INSTALLATION OF AN AIR CONDITIONING SYSTEM IN BUILDING NO. 11 AT THE HOSPITAL.

THE INVITATION REQUESTED BIDS--- TO BE OPENED ON SEPTEMBER 20, 1960 -- FOR INSTALLATION OF THE AIR CONDITIONING SYSTEM IN ACCORDANCE WITH CERTAIN SPECIFICATIONS. THE BID OF COMFORT COOLING CO. IN THE AMOUNT OF $28,192 PLUS $656 FOR ALTERNATE CONTROLS WAS THE LOWEST RECEIVED. SEVEN OTHER BIDS RECEIVED RANGED FROM $34,000 TO $36,700 FOR THE ENTIRE WORK INCLUDING ALTERNATE CONTROLS. ON THE DAY OF OPENING OF BIDS, A LETTER WAS ADDRESSED TO THE LOW BIDDER REQUESTING INFORMATION REGARDING ITS WORK PERFORMED BY IT DURING THE PAST 10 YEARS. ON THE FOLLOWING DAY, SEPTEMBER 21, 1960, A PARTNER OF COMFORT REQUESTED THE AMOUNTS OF THE OTHER BIDS. THEREAFTER, ON SEPTEMBER 22, 1960, THAT PARTNER STATED THAT A MISTAKE IN BID HAD BEEN MADE. HE WAS ADVISED TO SUBMIT ALL PERTINENT DATA, INCLUDING WORKSHEETS, QUOTATIONS, PRICE LISTS, AND ANY OTHER EVIDENCE WHICH WOULD ESTABLISH THE EXISTENCE OF THE MISTAKE AND TO INDICATE THE INTENDED BID. WITH ITS LETTER OF SEPTEMBER 23, 1960, THE LOW BIDDER HAS FURNISHED WORKSHEETS, ETC., AND IT HAS REQUESTED THAT THE PRICE BE INCREASED TO $32,559 PLUS $656 FOR ALTERNATE CONTROLS.

THE EVIDENCE SUBMITTED SHOWS THAT TESCO DISTRIBUTORS, INC., CONTACTED MINNEAPOLIS-HONEYWELL REGULATOR COMPANY FOR THE PRICE FOR INSTALLING THE TEMPERATURE CONTROL SYSTEM, AS WELL AS FOR INSTALLING ALTERNATE CONTROLS, AND ON SEPTEMBER 20, ADVISED COMFORT THAT THE PRICES QUOTED WERE $3,850 FOR THE ENTIRE WORK PLUS $656 FOR ALTERNATE CONTROLS. THE WORKSHEET SHOWS THAT THE AMOUNT OF $3,850 WAS SHOWN CORRECTLY BUT THE ADDING MACHINE TOTAL FOR THE VARIOUS ITEMS WAS SHOWN AS $25,130 PLUS PROFIT OF 12 1/2 PERCENT ($3,140) OR A TOTAL OF $28,270, WHICH WAS REDUCED BY $78 AND THE AMOUNT WAS THEN SHOWN AS $28,192 PLUS $656 FOR ALTERNATE CONTROLS. THE AMOUNT OF $3,850 WAS ADDED AS $38.50, RESULTING IN AN UNDERSTATEMENT OF THE TOTAL AMOUNT OF $3,811.50 (ROUNDED OUT TO $3,812) PLUS 12 1/2 PERCENT PROFIT THEREIN ($477) OR A TOTAL OF $4,289. THIS LATTER AMOUNT SHOULD BE ADDED TO THE AMOUNT OF THE BID ($28,192) RESULTING IN A TOTAL OF $32,481 PLUS $656 FOR ALTERNATE CONTROLS RATHER THAN $32,559 PLUS $656, AS CLAIMED BY COMFORT.

SINCE THE AMOUNT BID BY COMFORT WAS NOT IN LINE WITH THE OTHER BIDS RECEIVED, IT WOULD APPEAR THAT EVEN IF THIS BIDDER HAD NOT ALLEGED ERROR IN ITS BID, THE CONTRACTING OFFICER SHOULD HAVE BEEN ON CONSTRUCTIVE NOTICE OF POSSIBLE ERROR IN THE BID. THE EVIDENCE SUBMITTED SHOWS CLEARLY HOW THE MISTAKE WAS MADE AND IS CONVINCING AS TO THE AMOUNT OF THE INTENDED BID, EXCEPT FOR A MINOR ERROR IN COMPUTATION.

IN VIEW OF THE FOREGOING, AND IF THE LOW BIDDER IS WILLING TO ACCEPT THE CONTRACT IN THE AMOUNT OF $32,481 PLUS $656 FOR ALTERNATE CONTROLS, AWARD MAY BE MADE IN THAT AMOUNT. OTHERWISE, THE BID OF COMFORT MAY BE DISREGARDED IN MAKING AWARD.

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