B-129772, NOV. 19, 1956

B-129772, NOV. 19, 1956

TO JEROME C. HUNSAKER, CHAIRMAN, NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS:

REFERENCE IS MADE TO A LETTER DATED NOVEMBER 13, 1956, FROM THE EXECUTIVE OFFICER, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN RELATIVE TO AN ERROR ALLEGED BY THE RESERVE ELECTRIC COMPANY, CLEVELAND, OHIO, TO HAVE BEEN MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. C-6004 ISSUED BY THE NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS FOR FURNISHING ALL LABOR, EQUIPMENT AND MATERIALS AND PERFORMING ALL WORK FOR REVISIONS TO 440 VOLT POWER AT 8 BY 6 WIND TUNNEL AND TO 2400 VOLT POWER AT SUBSTATION "G" AT THE SITE OF THE LEWIS FLIGHT PROPULSION LABORATORY, 21000 BROOKPARK ROAD, CLEVELAND 11, OHIO.

IN RESPONSE TO THE INVITATION, THE RESERVE ELECTRIC COMPANY SUBMITTED A BID IN THE AMOUNT OF $7,286. THE OTHER BIDS RECEIVED WERE IN THE AMOUNTS OF $17,774 AND $24,700. IT IS STATED IN THE LETTER OF NOVEMBER 13 THAT THE COMMITTEE'S ESTIMATE OF THE COST OF THE WORK WAS $10,300.

UPON THE OPENING OF BIDS ON OCTOBER 30, 1956, THE RESERVE ELECTRIC COMPANY WAS REQUESTED TO VERIFY ITS BID BECAUSE OF THE GREAT DISPARITY BETWEEN ITS BID AND THE OTHER BIDS RECEIVED. IN ITS LETTER DATED NOVEMBER 2, 1956, THE RESERVE ELECTRIC COMPANY STATED THAT ITS BID SHOULD BE $8,642 INSTEAD OF $7,286, ALLEGING THAT THE MISTAKE IN ITS BID RESULTED FROM AN ERRONEOUS COMPUTATION OF THE COST OF 500 FEET OF CABLE AS $1,121 ALTHOUGH IT SHOULD HAVE BEEN $2,242, OR $4,486 PER M, THE PRICE QUOTED BY GENERAL ELECTRIC COMPANY TO THE BIDDER. WITH THE LETTER WERE ENCLOSED THE BIDDER'S ESTIMATE SHEETS SUBSTANTIATING THE ALLEGATION OF ERROR. THE BIDDER REQUESTED THAT ITS BID BE INCREASED IN THE AMOUNT OF $1,356 WHICH IS THE ADDITIONAL COST OF CABLE ($1,121) PLUS 10 PERCENT AND 10 PERCENT, IN ACCORDANCE WITH THE METHOD OF COMPUTATION USED IN THE ORIGINAL ESTIMATE. IT IS REPORTED IN YOUR COMMITTEE'S LETTER OF NOVEMBER 13, 1956, THAT THE GENERAL ELECTRIC COMPANY QUOTED TO THE FIELD PROCUREMENT OFFICER A PRICE OF $4,418.60 PER M FOR CABLE SUCH AS THAT INCLUDED IN THE BID.

IN VIEW OF THE FACTS AS REPORTED AND SHOWN BY THE FILE, IT MAY BE REGARDED AS SATISFACTORILY ESTABLISHED THAT THE RESERVE ELECTRIC COMPANY MADE A BONA FIDE ERROR IN ITS BID, AS ALLEGED AND EXPLAINED BY IT, AND THAT THE INTENDED AMOUNT OF THE BID WAS $8,642 AS ALLEGED. CORRECTION MAY BE PERMITTED AS REQUESTED, PROVIDED INSPECTION OF THE BIDDER'S WORK SHEETS DOES NOT SHOW ANY OMISSIONS OR OTHER OBVIOUS ERRORS.