B-124342, JUL. 6, 1955

B-124342, JUL. 6, 1955

TO MR. J. C. CAVANAGH, CONTRACTING OFFICER, VETERANS ADMINISTRATION HOSPITAL:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 16, 1955, 5253-11B, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN WITH RESPECT TO A BID DATED JUNE 6, 1955, SUBMITTED BY CRESCENT BOILER AND MACHINE WORKS, INC., IN RESPONSE TO INVITATION NO. 56-20, IN VIEW OF THE BIDDER'S ALLEGATION OF ERROR.

THE INVITATION REQUESTED, UNDER ITEMS NO. 1 AND 2, SINGLE "JOB" PRICE BIDS FOR FURNISHING THE SERVICES AND EQUIPMENT REQUIRED TO CLEAN FOUR BOILERS. UNDER ITEM NO. 1, THE WORK, AS DESCRIBED, WAS REQUIRED TO BE ACCOMPLISHED DURING THE PERIOD BETWEEN JULY 15 AND SEPTEMBER 15, 1955; WHEREAS, UNDER ITEM NO. 2, THE IDENTICAL "JOB" WAS REQUIRED TO BE ACCOMPLISHED DURING THE PERIOD BETWEEN JANUARY 15, AND MARCH 15, 1956. ITS BID THE COMPANY INSERTED "$900" IN THE UNIT PRICE COLUMN AND "$3,600" IN THE AMOUNT COLUMN FOR ITEM NO. 1 AND "$535" IN THE UNIT PRICE COLUMN AND ,$2,140" IN THE AMOUNT COLUMN FOR ITEM NO. 2. UPON BEING REQUESTED TO VERIFY ITS BID, THE CORPORATION, BY LETTER DATED JUNE 13, 1955, ADVISED THAT IT MADE AN ERROR IN ITS BID AS TO THE UNIT IN THAT ITS UNIT PRICES WERE PER BOILER AND THAT, CONSISTENT THEREWITH, THE BID AS EXTENDED AND INSERTED IN THE AMOUNT COLUMN FOR EACH ITEM WAS FOR THE ENTIRE JOB OF CLEANING THE FOUR BOILERS. IN THE ONLY OTHER BID RECEIVED A PRICE OF $4,960 WAS QUOTED IN THE AMOUNT COLUMN FOR ITEM NO. 1 AND A PRICE OF $4,560 IN THE AMOUNT COLUMN FOR ITEM NO. 2. NO UNIT PRICE WAS QUOTED THEREIN FOR EITHER ITEM.

ERROR IS APPARENT ON THE FACE OF THE CORPORATION'S BID AS TO BOTH ITEMS, SINCE, WITH RESPECT TO EITHER ITEM, THE UNIT PRICE MULTIPLIED BY THE QUANTITY OF ONE (UNIT) DOES NOT EQUAL THE AMOUNT INSERTED IN THE AMOUNT COLUMN FOR THE ITEM; WHEREAS, IN EITHER CASE, IF THE UNIT PRICE BE REGARDED AS THE PRICE PER BOILER--- AS STATED TO HAVE BEEN INTENDED -- THE UNIT PRICE MULTIPLIED BY THE QUANTITY OF FOUR (BOILERS) WILL EQUAL THE AMOUNT INSERTED IN THE AMOUNT COLUMN. IF THE UNIT PRICES QUOTED BY THE COMPANY ARE CONSTRUED LITERALLY AS APPLYING TO THE "JOB" OF CLEANING ALL FOUR BOILERS, THE TOTAL AMOUNT OF THE COMPANY'S BID ON ITEM NO. 1 WOULD BE $900 AND ITS TOTAL BID ON ITEM NO. 2 WOULD BE $535, AND SUCH PRICES WOULD BE ENTIRELY OUT OF LINE WITH THE OTHER BID. HOWEVER, THE PRICES QUOTED BY THE CORPORATION IN THE AMOUNT COLUMN FOR ITEMS NOS. 1 AND 2 ARE IN LINE WITH THE OTHER BID. THUS, IT IS OBVIOUS THAT THE ERROR WAS MADE AS TO THE UNIT RATHER THAN IN THE PRICE, AND THAT THE BIDDER'S INTENDED PRICES FOR THE JOB WERE AS QUOTED IN THE AMOUNT COLUMN, THE USE OF THE UNIT PRICE COLUMN HAVING BEEN INAPPROPRIATE, UNNECESSARY AND ERRONEOUS.

ACCORDINGLY, SINCE YOU BELIEVED THAT THE BID WAS ERRONEOUS AND SINCE SUCH BELIEF WAS CONFIRMED AND THE MISTAKE EXPLAINED BY THE CORPORATION PRIOR TO AWARD, THE FIGURES APPEARING IN THE UNIT PRICE COLUMN MAY BE DISREGARDED AND THE BID READ AS FOR THE AMOUNTS SHOWN IN THE COLUMN INTENDED FOR THE TOTAL CHARGE.

IN THE EVENT OF AN AWARD TO CRESCENT BOILER AND MACHINE WORKS, INC., A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE CONTRACT.