B-141016, NOV. 2, 1959

B-141016, NOV. 2, 1959

TO MR. JAMES B. RING, ACTING AREA DIRECTOR, BUREAU OF INDIAN AFFAIRS, U.S. DEPARTMENT OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 16, 1959, WITH ENCLOSURES, FILE LAND OPERATIONS 280, REQUESTING OUR DECISION AS TO WHETHER THE BID OF COTTONWOOD TANK AND WELDING MAY BE CONSIDERED FOR AWARD UNDER INVITATIONS FOR BIDS FOR THE WORK OF INSTALLING STOCK WATER PIPELINES ON THE HEALAGED INDIAN RESERVATION, ARIZONA.

THE RECORD INDICATES THAT EIGHT BIDS WERE RECEIVED FOR PERFORMING THE INVOLVED WORK, WHICH WAS DIVIDED INTO FOUR ITEMS. PAGE ONE OF THE BID SCHEDULE LISTED THE WORK AS FOLLOWS: (1) APPROXIMATELY 32,360 FEET OF TRENCHING; (2) INSTALLATION OF PIPE, APPROXIMATELY 13,500 FEET OF 1 1/2 IN. PIPE, APPROXIMATELY 13,360 FEET OF 1 IN. PIPE AND APPROXIMATELY 14,500 FEET OF 3/4 IN. PIPE; (3) APPROXIMATELY 14,360 FEET OF COVERING; AND (4) INSTALLATION OF TWO STOCK WATER TROUGHS, 2 FT. BY 4 FT. BY 12 FT. THE FORM USED FOR THIS BID (STANDARD FORM 19) PROVIDED SPACE ONLY FOR A LUMP-SUM FIGURE FOR A BID. HOWEVER, AN AUXILIARY SHEET DESIGNATED AS THE BID SCHEDULE LISTED IN DETAIL THE FOUR ITEMS OF WORK AND PROVIDED A SPACE OPPOSITE THE LISTING OF EACH ITEM, FOR THE UNIT BID PRICE AS WELL AS THE AMOUNT BID THEREFOR, AND A SPACE FOR THE "TOTAL AMOUNT BID.' AWARD IS TO BE MADE ON AN ALL OR NONE BASIS. FOR THE PURPOSE OF DETERMINING THE CONTRACT PRICE AND FIXING THE AMOUNTS OF THE PAYMENT AND PERFORMANCE BONDS, THE TOTAL AMOUNT OF THE BID SCHEDULE IS TO BE USED.

THE LOW BID RECEIVED WAS SUBMITTED BY COTTONWOOD TANK AND WELDING AND IS IN THE TOTAL AMOUNT OF $2,000. THE BIDDER HAS NOT SUBMITTED ANY UNIT PRICES WHICH, OF COURSE, ARE NECESSARY BECAUSE THE QUANTITIES OF WORK ON THREE ITEMS ARE ESTIMATED ONLY. THE BIDDER WAS CALLED UPON TO VERIFY HIS BID OF $2,000 FOR THE ENTIRE WORK BECAUSE IT APPEARED VERY LOW IN PRICE. AFTER THE VERIFICATION, THE BIDDER WAS REQUESTED TO SUBMIT UNIT PRICES TO SUBSTANTIATE HIS BID. THE UNIT PRICES SUBMITTED BY COTTONWOOD SUBSTANTIATE THE TOTAL AMOUNT BID FOR THE JOB. WHILE SOME QUESTION ALSO WAS RAISED ABOUT THE LOW BIDDER'S ABILITY TO PERFORM, IT WAS FOUND THAT HE IS DOING WORK ON A RECENTLY AWARDED CONTRACT AND THE WORK IS PROGRESSING SATISFACTORILY.

YOUR LETTER PRESENTS THE QUESTION AS TO WHETHER THE OMISSION OF UNIT PRICES IS AN INFORMALITY WHICH MAY BE WAIVED. BY WAY OF INFORMATION, YOU REFER TO THE GSA PROCUREMENT HANDBOOK, 1959 EDITION, PARAGRAPH 9, PAGE 87, WHICH PROVIDES THAT A LOW BIDDER MAY BE ASKED TO FURNISH A PRICE BREAKDOWN IF HE SUBMITS A LUMP-SUM BID AND IF THE UNIT PRICES FURNISHED WHEN EXTENDED AT THE QUANTITIES SPECIFIED EXACTLY EQUAL THE LUMP-SUM PRICE QUOTED, THE BID MAY THEN BE CONSIDERED FOR AWARD. ALSO, YOU REFER TO OUR DECISION OF AUGUST 4, 1959, B-140286, WHEREIN IT WAS HELD THAT THE FAILURE TO INCLUDE UNIT PRICES IN THE ORIGINAL BID MAY BE CONSIDERED AS AN INFORMALITY WHICH MAY BE WAIVED AS IN THE INTERESTS OF THE UNITED STATES.

THE FACTS IN THIS CASE ARE SIMILAR, IN ALL MATERIAL RESPECTS, TO THOSE PRESENT IN THE CASE CONSIDERED IN OUR DECISION OF AUGUST 4, 1959,TO WHICH YOU REFER. ALSO, UNDER THE PROVISIONS OF THE GSA PROCUREMENT HANDBOOK, REFERRED TO HEREINABOVE, THE UNIT PRICES FURNISHED WHEN EXTENDED AT THE QUANTITIES SPECIFIED EXACTLY EQUAL THE LUMP-SUM PRICE QUOTED SO THAT THE LOW BID MAY BE CONSIDERED FOR AWARD.

ACCORDINGLY, YOU ARE ADVISED THAT THE LOW BID OF COTTONWOOD TANK AND WELDING IN THE TOTAL AMOUNT OF $2,000 AND AT THE UNIT PRICES SUBSTANTIATING THIS BID MAY BE CONSIDERED FOR AWARD.