B-136172, AUG. 6, 1958

B-136172, AUG. 6, 1958

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO LETTER DATED JULY 11, 1958, FROM THE CHIEF, BUREAU OF YARDS AND DOCKS, FILE REFERENCE C-610C/GWW:PJK, FURNISHING A REPORT RELATIVE TO AN ERROR ALLEGED BY FOWLER AND SAMSE TO HAVE BEEN MADE IN ITS BID WHICH IS THE BASIS OF CONTRACT NO. NBY-16146, DATED APRIL 28, 1958.

THE OFFICER-IN-CHARGE OF CONSTRUCTION, PUBLIC WORKS CENTER, U.S. NAVAL BASE, NEWPORT, RHODE ISLAND, ON APRIL 2, 1958, REQUESTED BIDS, TO BE OPENED ON APRIL 24, 1958, FOR THE INSTALLATION OF AN EVAPORATOR IN BUILDING NO. 138, AND FOR RELATED WORK IN ACCORDANCE WITH ATTACHED SPECIFICATIONS AND DRAWINGS. UNDER THE TERMS OF PARAGRAPH 1.20 OF THE SPECIFICATIONS, THE GOVERNMENT WAS TO FURNISH FREE OF CHARGE TO THE CONTRACTOR, AMONG OTHER THINGS, THE EVAPORATOR ITSELF AND CERTAIN OTHER EQUIPMENT SET FORTH THEREIN.

IN RESPONSE TO THE INVITATION, FOWLER AND SAMSE SUBMITTED A BID DATED APRIL 24 OFFERING TO PERFORM THE WORK FOR THE SUM OF $9,484. THE ONE OTHER BID RECEIVED WAS IN THE AMOUNT OF $26,100. THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK WAS $11,840, WHICH WAS MADE UP OF $6,340 ESTIMATED BY THE ARCHITECT'S ENGINEER, FOR THE WORK EXCLUSIVE OF ESSENTIAL PIPING, AND THE DESIGN DEPARTMENT'S ESTIMATE OF $5,500 FOR THE PIPING. AWARD WAS MADE TO FOWLER AND SAMSE ON APRIL 28. THE CONTRACTING OFFICER REPORTS THAT AFTER THE BID OPENING, THE CONTRACTOR WAS VERBALLY REQUESTED TO CHECK HIS BID; AND THAT AT THE TIME THE CONTRACTOR SIGNED THE NOTICE OF AWARD, HE INDICATED THAT HE HAD CHECKED HIS BID AND WAS SATISFIED THAT IT WAS ALL RIGHT. THEREAFTER, HOWEVER, AFTER FURTHER CHECKING, THE FIRM DISCOVERED THAT ITS BID HAD BEEN BASED UPON AN ERRONEOUS INTERPRETATION OF THE SPECIFICATIONS WITH RESPECT TO THE MATERIAL TO BE FURNISHED BY THE GOVERNMENT, AND NOTIFIED THE CONTRACTING OFFICER OF ITS ERROR ON MAY 2, AND ASKED TO BE RELIEVED FROM THE CONTRACT.

THE BIDDER SUBMITTED IN SUPPORT OF ITS ALLEGED ERROR ITS ESTIMATE SHEET SHOWING THE BASIS ON WHICH ITS BID PRICE WAS COMPUTED. SAID ESTIMATE CONTAINS AN ITEM COVERING "PIPE AND FITTINGS" OF $1,000. AS INDICATED ABOVE, THE GOVERNMENT'S ESTIMATE OF THE COST OF THE WORK INCLUDES AN ITEM OF "PIPING" OF $5,500. THUS, AND CONSIDERING THE FACT THAT THE OTHER BID RECEIVED WAS IN THE AMOUNT OF $26,100, THERE WOULD APPEAR TO BE LITTLE, IF ANY, DOUBT THAT AN ERROR WAS MADE IN THE BID AS ALLEGED.

THE DISTRICT PUBLIC WORKS OFFICER REPORTS THAT THE PLANS AND SPECIFICATIONS FOR THE PROJECT WERE FORWARDED TO HIS OFFICE FOR REVIEW BUT WERE RECEIVED TOO LATE FOR REVIEW PRIOR TO THE BID OPENING. HE STATES FURTHER HIS CONCLUSION THAT THERE WAS SUCH A RANGE IN THE BIDDING AS TO REQUIRE WRITTEN VERIFICATION OF THE LOW BID UNDER APPLICABLE DIRECTIVES.

IN THE CIRCUMSTANCES, YOU ARE ADVISED THAT CONTRACT NO. NBY-16146 MAY BE CANCELED AND FOWLER AND SAMSE RELIEVED FROM ALL LIABILITY THEREUNDER.

THE ORIGINAL OF THE BID OF FOWLER AND SAMSE AND THE BID BOND ARE RETURNED. THE OTHER PAPERS ARE BEING RETAINED HERE.