B-145876, JUN. 1, 1961

B-145876, JUN. 1, 1961

TO MR. WILLIAM M. HAUSSMANN, NATIONAL CAPITAL PARKS, DEPARTMENT OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER OF MAY 15, 1961, WITH ENCLOSURES, REQUESTING OUR DECISION AS TO THE APPROPRIATE ACTION TO BE TAKEN REGARDING AN ERROR ALLEGED TO HAVE BEEN MADE IN A BID SUBMITTED BY YOUNG ASSOCIATES, INC., IN RESPONSE TO AN INVITATION ISSUED ON APRIL 10, 1961, BY NATIONAL CAPITAL PARKS AND IDENTIFIED BY NO. 14-10-0028 2111.

THE BID OF YOUNG ASSOCIATES, INC., REFLECTS A TOTAL PRICE OF$146,580-- ADJUSTMENT OF EXTENDED PRICES SHOWS CORRECT AMOUNT TO BE $145,320--- FOR THE CONSTRUCTION, IN ACCORDANCE WITH APPLICABLE SPECIFICATIONS, SCHEDULES, DRAWINGS, ETC., OF 20 TENNIS COURTS, FENCING AND MISCELLANEOUS WORK AT BRIGHTWOOD IN ROCK CREEK PARK, WASHINGTON, D.C. SIX OTHER BIDS WERE RECEIVED FOR THE PROJECT RANGING FROM $169,315 TO $217,900. BY LETTER DATED MAY 5, 1961, YOUNG ASSOCIATES, INC., ADVISED NATIONAL CAPITAL PARKS THAT THERE WAS OMITTED FROM ITEM NO. 14 OF ITS BID THE AMOUNT OF $3,000 AS THE DISTRICT OF COLUMBIA TAPPING CHARGE FOR CONNECTING THE WATER LINE TO A NEARBY WATER MAIN. THE CORPORATION STATED ALSO THAT IT HAD RECEIVED AN ELECTRICAL SUBCONTRACTOR'S BID OVER THE TELEPHONE FOR ITEM NO. 27 WHICH IT HAD TAKEN TO BE $1,650 INSTEAD OF THE CORRECT AMOUNT OF $16,500 WHICH, AFTER ALLOWING THE 8 PERCENT MARK-UP, SHOULD HAVE BEEN QUOTED BY IT AT $17,800. IN VIEW OF THE ALLEGED ERRORS THE CORPORATION REQUESTS THAT ITS BID BE CHANGED FROM $14,250 TO $17,250 FOR ITEM NO. 14 AND FROM $2,500 TO $17,800 FOR ITEM NO. 27. SUCH INCREASES WOULD RESULT IN A TOTAL REVISED LOW BID OF $163,620. IN VIEW OF THE FOREGOING, YOU REQUEST INFORMATION AS TO WHETHER THE BID OF YOUNG ASSOCIATES, INC., SHOULD BE REFORMED OR REJECTED.

REGARDING ITEM NO. 14, WE CONCUR IN THE OPINION EXPRESSED BY YOU THAT THERE IS NO INDICATION OR EVIDENCE OF RECORD THAT AN ERROR OF $3,000 WAS MADE IN THE $14,250 BID OF YOUNG ASSOCIATES, INC. IN PARTIAL SUPPORT OF THIS CONCLUSION, IT APPEARS SIGNIFICANT THAT ONE OF THE SIX OTHER BIDS RECEIVED FOR ITEM NO. 14 WAS IN THE LOWER AMOUNT OF ONLY $8,400.

WITH RESPECT TO ITEM NO. 27, HOWEVER, THE BID OF YOUNG ASSOCIATES, INC., OF $2,500 WAS SUBSTANTIALLY BELOW THE SIX OTHER BIDS, WHICH RANGED FROM $11,105 TO $37,400. MOREOVER, THERE IS IN THE RECORD A CERTIFIED ESTIMATE OF THE CHIPMAN ELECTRIC COMPANY, WHO SUBMITTED THE TELEPHONIC QUOTATION TO YOUNG ASSOCIATES, INC., FOR ITEM NO. 27, WHICH SHOWS A QUOTATION ROUNDED OFF IN THE TOTAL AMOUNT OF $16,500. WHILE THE BID COMPARISON BASIS FOR ITEM NO. 27, TOGETHER WITH THE ELECTRICAL SUBCONTRACTOR'S ESTIMATE, APPEARS TO ESTABLISH BEYOND ANY REASONABLE DOUBT THAT AN ERROR WAS MADE BY YOUNG ASSOCIATES, INC., OUR OFFICE CONSISTENTLY HAS HELD THAT, AS A PREREQUISITE TO THE CORRECTION OF AN ERRONEOUS BID, THERE MUST BE NO DOUBT AS TO THE AMOUNT OF THE INTENDED BID. IN THIS REGARD, THE RECORD SHOWS THAT A MARK-UP IN EXCESS OF 50 PERCENT WAS INCLUDED IN THE CORPORATION'S ORIGINAL BID OF $2,500 WHILE ONLY APPROXIMATELY 8 PERCENT WAS ADDED TO THE SUBCONTRACTOR'S ESTIMATE IN ARRIVING AT THE ALLEGED INTENDED BID OF $17,800. CONSEQUENTLY, IT IS OUR VIEW THAT THE RECORD FAILS TO ESTABLISH, WITH THAT DEGREE OF CERTAINTY REQUIRED, THAT HAD AN ERROR NOT OCCURRED THE BID FOR ITEM NO. 27 WOULD HAVE BEEN $17,800.

ACCORDINGLY, THE ENTIRE BID OF YOUNG ASSOCIATES, INC., MAY BE DISREGARDED BUT NOT CORRECTED.