B-124262, JUN. 28, 1955

B-124262, JUN. 28, 1955

TO MR. JOHN M. RATHBUN, CONTRACTING OFFICER, BONNEVILLE POWER ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 8, 1955, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION THAT SHOULD BE TAKEN WITH RESPECT TO ERRORS ALLEGED BY HARBERT BROS. AND PIERCE AND PIERCE TO HAVE BEEN MADE IN THEIR BIDS SUBMITTED IN RESPONSE TO INVITATION NO. 7667.

THE INVITATION COVERS A CLEARING OF THE RIGHT-OF-WAY AND CONSTRUCTION OF ACCESS ROADS FOR THE SANDY-OREGON CITY SECTIONS OF THE BIG EDDY-OREGON CITY 287 KV AND THE BIG EDDY-BETHANY 345 KV TRANSMISSION LINES, AND CLEARING AND GRUBBING THE SITE OF THE OREGON CITY SUBSTATION ADDITION. THE WORK TO BE PERFORMED IS DIVIDED INTO TWO SCHEDULES. SCHEDULE 1 COVERS THE CLEARING OF THE BIG EDDY-OREGON CITY 287 KV LINE, AND THE GRUBBING OF THE SITE FOR THE OREGON CITY SUBSTATION ADDITION. SCHEDULE 1A COVERS, IN ADDITION TO THE SAME WORK AS SCHEDULE 1, THE CLEARING FOR THE PARALLEL BIG EDDY-BETHANY 345 KV LINE. IT IS STATED IN YOUR LETTER THAT THE AVERAGE WIDTH FOR ONE LINE (REQUIRED TO BE CLEARED UNDER SCHEDULE 1) IS 125 FEET; THAT THE AVERAGE WIDTH FOR TWO LINES (REQUIRED TO BE CLEARED UNDER SCHEDULE 1A) IS 250 FEET; AND THAT ON SOME PORTIONS OF THE RIGHT-OF-WAY (APPROXIMATELY 30.5 MILES), THE FULL WIDTH IS TO BE CLEARED WHETHER ONE OR TWO LINES ARE AWARDED.

YOUR TABULATION OF THE QUOTATIONS RECEIVED IN RESPONSE TO THE INVITATION SHOWS THAT TWO BIDDERS, HARBERT BROS. AND PIERCE AND PIERCE, QUOTED LOWER PRICES UNDER SCHEDULE 1A, THE COMBINED OPERATION, THAN UNDER SCHEDULE 1, COMPRISING ONLY A PART OF THE SAME WORK.

IT IS REPORTED THAT AT THE OPENING OF THE BID OF HARBERT BROS. (THE SEVENTH OPENED) SEVERAL OF THE BIDDERS STATED THAT THEY BELIEVED THE FIGURES WERE OBVIOUSLY REVERSED; THAT NO REPRESENTATIVE OF HARBERT BROS. WAS PRESENT AT THE BID OPENING TO MAKE A STATEMENT; AND THAT AT THAT TIME MR. GLENN PIERCE OF PIERCE AND PIERCE (WHOSE BID HAD NOT AS YET BEEN OPENED, IT WAS THE TENTH AND LAST OPENED) STATED THAT HE BELIEVED HE HAD ALSO MADE AN ERROR IN HIS BID IN THAT THE PRICE FOR SCHEDULE 1A DID NOT INCLUDE THE COST OF CLEARING BOTH RIGHTS-OF-WAY.

IT IS FURTHER REPORTED THAT LATER IN THE AFTERNOON OF THE BID OPENING DATE, MR. JACK HARBERT OF HARBERT BROS. TELEPHONED TO INQUIRE WHO WAS THE LOW BIDDER; THAT BEFORE HE WAS ADVISED AS TO THE LOW BIDDER, IN ANSWER TO QUESTIONS IT WAS DISCLOSED THAT HE KNEW THAT ONE SCHEDULE WAS FOR CLEARING THE RIGHT-OF-WAY FOR ONLY ONE LINE AND THAT THE OTHER WAS FOR CLEARING THE RIGHT-OF-WAY FOR BOTH LINES; AND THAT THE HIGHER BID FIGURE WAS FOR CLEARING BOTH RIGHTS-OF-WAY.

BY LETTER DATED JUNE 4, 1955, HARBERT BROS. REQUESTED THAT ITS BID PRICES ON THE TWO SCHEDULES BE REVERSED, EXPLAINING THAT THE BID WAS BASED ON CLEARING A TOTAL OF 304 ACRES AT $250 PER ACRE FOR ONE LINE AND 571 ACRES FOR TWO LINES. BY LETTER DATED JUNE 7, 1955, PIERCE AND PIERCE ADVISED THAT ITS BID COVERED ONLY THE CLEARING OF ONE RIGHT-OF WAY UNDER EACH SCHEDULE.

IT IS OBVIOUS THAT THE BID PRICES ON SCHEDULE 1A SHOULD BE HIGHER THAN THE PRICES ON SCHEDULE 1 SINCE IT COVERS A GREATER AMOUNT OF WORK. ON THE BASIS OF THE FACTS OF RECORD, THERE APPEARS NO DOUBT THAT THE BID PRICES OF HARBERT BROS ARE REVERSED, AND THAT PIERCE AND PIERCE DID NOT INCLUDE IN SCHEDULE 1A ALL OF THE WORK REQUIRED. ACCORDINGLY, THE BID PRICES OF HARBERT BROS. ON THE TWO SCHEDULES MAY BE REVERSED AND THE BID, AS SO CORRECTED, CONSIDERED ALONG WITH THE OTHER BIDS FOR AWARD. THE BID OF PIERCE AND PIERCE ON SCHEDULE 1A SHOULD BE DISREGARDED.

THE COPY OF THE INVITATION AND THE BIDS OF HARBERT BROS. AND PIERCE AND PIERCE ARE RETURNED, THE OTHER PAPERS BEING RETAINED HERE.