B-143893, SEP. 21, 1960

B-143893, SEP. 21, 1960

TO MR. J. C. KIMBALL, HEAD, INVITATIONS AND AWARDS SECTION, BUREAU OF RECLAMATION:

REFERENCE IS MADE TO YOUR LETTER DATED SEPTEMBER 1, 1960, WITH ENCLOSURES, FILE D-289A, REQUESTING OUR DECISION AS TO THE APPROPRIATE ACTION TO BE TAKEN IN REGARD TO AN ERROR ALLEGED BY THE AJAX IRON WORKS COMPANY TO HAVE BEEN MADE IN ITS BID UNDER INVITATION NO. (D) 91,033 A, ISSUED ON JULY 6, 1960, BY THE DENVER OFFICE OF THE BUREAU OF RECLAMATION.

THE RECORD SHOWS THAT THE LOW BID OF THE AJAX IRON WORKS COMPANY OF $12,966.79 FOR FURNISHING THE INTAKE STRUCTURE STOPLOGS AS DESCRIBED IN THE INVITATION IS OUT OF LINE WITH THE EIGHT OTHER BIDS RECEIVED, WHICH RANGED FROM $19,355.40 TO $28,397 AND WITH THE GOVERNMENT'S ESTIMATE OF $20,000. IT IS FURTHER SHOWN THAT BY REASON OF SUCH PRICE VARIATION YOU SUSPECTED THAT AN ERROR HAD BEEN MADE IN THE BID AND THAT YOUR SUSPICION WAS CONFIRMED WHEN THE AJAX IRON WORKS COMPANY ADVISED, IN REPLY TO YOUR REQUEST FOR VERIFICATION, THAT AN ERROR HAD BEEN MADE. MOREOVER, THE COMPANY HAS FURNISHED REPRODUCTIONS OF THE ORIGINAL WORK SHEETS, WHICH HAVE BEEN SWORN TO, AND WHICH APPEAR TO SUPPORT ITS STATEMENT THAT THE ERROR RESULTED BASICALLY FROM THE USE OF A WEIGHT OF ONLY 51,429 POUNDS--- 69,850 POUNDS REPORTED TO BE SHOWN ON APPLICABLE DRAWING--- IN COMPUTING THE MATERIAL AND LABOR COSTS, WHICH COVERED ONLY TWO UNITS INSTEAD OF THE THREE UNITS REQUIRED. THE COMPANY STATES THAT ITS PRICE SHOULD HAVE BEEN $18,432.79 AND REQUESTS THE WITHDRAWAL OF ITS BID.

WHILE WE DO NOT BELIEVE THAT THE INTENDED PRICE IS ESTABLISHED WITH SUCH CERTAINTY AS TO PERMIT CORRECTION OF THE BID, THERE CAN BE LITTLE, IF ANY, DOUBT FROM THE FOREGOING THAT AN ERROR WAS, IN FACT, MADE BY THE AJAX IRON WORKS COMPANY, AS ALLEGED.