B-146592, NOV. 3, 1961
Highlights
ESQUIRE: REFERENCE IS MADE TO YOUR LETTER DATED JULY 31. THE TWELVE BIDS SUBMITTED WERE OPENED ON APRIL 28. THE NEXT LOW BID WAS SUBMITTED BY COAST ROOF COMPANY IN THE AMOUNT OF $129. THE GOVERNMENT'S ESTIMATE WAS $130. 169 WAS ACCEPTED. WAS MUCH LOWER THAN THE OTHER BIDS AND THE GOVERNMENT'S ESTIMATE. STATING THAT "WE HAVE CHECKED OUR FIGURES AND HEREBY CONFIRM OUR BID PRICE AS SUBMITTED.'. IT IS STATED IN THE LETTER OF JULY 31. UNLESS THIS OFFICER IS ACCEPTED.
B-146592, NOV. 3, 1961
TO EARLE K. SHAWE, ESQUIRE:
REFERENCE IS MADE TO YOUR LETTER DATED JULY 31, 1961, CONCERNING AN ALLEGED ERROR IN BID BY DOLL PAINTING COMPANY, INC., IN CONNECTION WITH CONTRACT NBY-36844, DATED APRIL 29, 1961.
BY INVITATION ISSUED APRIL 12, 1961, THE DISTRICT PUBLIC WORKS OFFICER, ELEVENTH NAVAL DISTRICT, SAN DIEGO, CALIFORNIA, REQUESTED BIDS TO FURNISH ALL LABOR FOR REROOFING AND REPAIRS TO VARIOUS HOUSING UNITS, MARINE CORPS AIR STATION, EL TORO (SANTA ANA), CALIFORNIA. THE TWELVE BIDS SUBMITTED WERE OPENED ON APRIL 28, 1961. THE LOW BID SUBMITTED BY DOLL PAINTING COMPANY, INC., IN THE AMOUNT OF $107,169. THE NEXT LOW BID WAS SUBMITTED BY COAST ROOF COMPANY IN THE AMOUNT OF $129,000. THE OTHER BIDS RECEIVED RANGED FROM $137,900 TO $185,330. THE GOVERNMENT'S ESTIMATE WAS $130,000.
BY LETTER OF APRIL 29, 1961, THE BUREAU OF YARDS AND DOCKS NOTIFIED THE COMPANY THAT ITS PROPOSAL OF APRIL 25, 1961, IN THE SUM OF $107,169 WAS ACCEPTED.
IN EVALUATING THE BIDS, THE DIRECTOR, SOUTHWEST DIVISION, BUREAU OF YARDS AND DOCKS, NOTED THAT THE BID OF THE DOLL PAINTING COMPANY, INC., WAS MUCH LOWER THAN THE OTHER BIDS AND THE GOVERNMENT'S ESTIMATE, AND REQUESTED THE COMPANY TO CONFIRM ITS BID IN WRITING. THE COMPANY CONFIRMED ITS BID BY TELEGRAM OF MAY 1, 1961, STATING THAT "WE HAVE CHECKED OUR FIGURES AND HEREBY CONFIRM OUR BID PRICE AS SUBMITTED.' ON MAY 29, 1961, THE COMPANY STATED THAT IT HAD MADE A MISTAKE WITH REGARD TO THE TYPE OF ROOFING SHINGLES LISTED IN THE SPECIFICATIONS.
IT IS STATED IN THE LETTER OF JULY 31, 1961, THAT THE MISTAKE OCCURRED BECAUSE OF THE "LACK OF THE AVAILABILITY OF COMPETITIVE PRICES AND UNFAMILIARITY OF LOCAL SUPPLIERS WITH THE REQUIRED SHINGLE.' THE NAVY DEPARTMENT HAS ADVISED THE COMPANY THAT IT WOULD ACCEPT A SUBSTITUTE SHINGLE WITH A CREDIT OF $23,265 TO THE GOVERNMENT. THE RECORD SHOWS THAT NO REPLY HAS BEEN RECEIVED FROM THE COMPANY TO THAT OFFER.
ACCORDINGLY, UNLESS THIS OFFICER IS ACCEPTED, WE SEE NO ALTERNATIVE BUT TO HOLD THE CONTRACTOR TO THE TERMS OF THE CONTRACT AND IN EVENT OF DEFAULT TO CHARGE IT WITH ANY RESULTING EXCESS COST.