B-124052, JUN. 2, 1955

B-124052, JUN. 2, 1955

TO MR. DONALD M. SMITH, CONTRACTING OFFICER, PURCHASING AND CONTRACTING OFFICE:

REFERENCE IS MADE TO YOUR LETTER OF MAY 18, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN REGARDING A BID DATED APRIL 29, 1955, SUBMITTED BY HARTMAN-HANKS-WALSH PAINTING COMPANY IN RESPONSE TO INVITATION NO. IFB 65-501-55-88, FOR WATERPROOFING AND REPAIR OF CERTAIN BUILDINGS AT THE ELMENDORF AIR FORCE BASE, ALASKA.

THE ABSTRACT OF BIDS SHOWS THAT THE THREE BIDS RECEIVED FOR THE WORK IN QUESTION WERE $23,400 (HARTMAN-HANDS-WALSH), $33,464 AND $36,493.

YOU STATE THAT THE COMPANY'S ALASKA REPRESENTATIVE, MR. LUSE, ADVISED IMMEDIATELY AFTER THE OPENING OF BIDS ON MAY 3, 1955, THAT THE COMPANY'S BID SUBMITTED FROM THE HOME OFFICE IN ST. LOUIS, MISSOURI, WAS LESS THAN THE AMOUNT HE HAD SUBMITTED TO THE HOME OFFICE FOR THE PROJECT. THE RECORD SHOWS FURTHER THAT THE COMPANY, BY TELEGRAM DATED MAY 6, 1955, ADVISED THAT AN ERROR WAS MADE IN THE BID IN THAT THE COST OF THE REQUIRED REPAIRS WAS NOT INCLUDED; THAT THE BID SHOULD HAVE BEEN $31,000; AND THAT ITS ALASKA AGENT WOULD EXPLAIN AND SUBMIT HIS "TAKE OFF" FOR CHECKING. PERMISSION TO WITHDRAW THE BID WAS REQUESTED IN THE TELEGRAM. BY LETTER OF MAY 8, 1955, MR. LUSE, THE AGENT, EXPLAINED THAT IT WAS OBVIOUS TO HIM THAT THE ERROR WAS MADE AT THE HOME OFFICE, AS ALLEGED IN THE TELEGRAM, SINCE HIS ITEMIZED QUOTATIONS DATED APRIL 25, 1955, SENT TO THE HOME OFFICE AS THE BASIS FOR THE BID, SHOWED THE ESTIMATE OF THE EXTERIOR PAINTING AMOUNTING TO $23,406.08, TO WHICH HE EXPRESSLY SPECIFIED THAT THE REPAIR WORK SHOULD BE ADDED AND, FOR THAT PURPOSE, THREE BIDS FROM SUBCONTRACTORS FOR FURNISHING THE REPAIRS WERE FURNISHED, THE LOWEST OF WHICH WAS $7,875. VERIFIED COPIES OF HIS REFERRED-TO QUOTATIONS TO THE HOME OFFICE AND OF THE SUBCONTRACTOR'S LOW BID LEND SUBSTANTIAL CREDENCE TO HIS EXPLANATION. ALTHOUGH THE AMOUNT OF THE INTENDED BID HAS NOT BEEN ESTABLISHED CONCLUSIVELY, IT APPEARS THAT SUBCONTRACTING THE REPAIR WORK WAS INTENDED AND SINCE THE COMPANY'S BID OBVIOUSLY WAS BASED SOLELY ON THE ESTIMATE SHOWN IN MR. LUSE'S QUOTATIONS FOR THE EXTERIOR PAINTING, TO THE EXCLUSION OF THE SUGGESTED COST OF THE CONTEMPLATED SUBCONTRACTING, THERE IS NO DOUBT THAT A BONA FIDE ERROR WAS MADE IN THE BID, AS ALLEGED.

ACCORDINGLY, SINCE THE ERROR PROMPTLY WAS ALLEGED AND ESTABLISHED SATISFACTORILY BY COMPETENT EVIDENCE PRIOR TO AWARD, THE BID OF HARTMAN- HANKS-WALSH PAINTING COMPANY SHOULD BE DISREGARDED.

THE PAPERS, WITH THE EXCEPTION OF THE STATEMENT OF THE CONTRACTING OFFICER, DATED MAY 10, 1955, AND THE VERIFIED COPIES OF THE SUBCONTRACTOR'S BID ON THE SAME DATE TO THE COMPANY'S HOME OFFICES, ARE RETURNED.