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LCD-78-401 1 (1977-10-05)

handle is hein.gao/gaobaayan0001 and id is 1 raw text is: * /THE COMPTROLLER GENERAL DECISION • OF THE UNITED STATES o WASHINGTON. D.C. 20548 coolI FILE: B-183235 DATE: November 6,1975 MATTER OF: Air Products and Chemicals, Inc. DIGEST: LMi74 1. Prospective subcontractor's complaint against subcontract awarded under Federal grant is for consideration since prime contractor awarded subcontract in question for the grantee. 2. Purpose of power cost clauses in bidding documents for contract awarded under Federal grant is to enable grantee to ascertain as precisely as possible its total costs for proposed subcontract and to establish base for possible imposition of financial penalty in event power costs are exceeded. 3. Since power consumption figures are material only to determination of grantee's ultimate costs and because any deviation from prescribed figures actually affects only determination of whether given bid will be most financially advantageous to grantee, irregular power consumption figures in bid otherwise appearing most financially advantageous should not be regarded as making bid nonresponsive where bid, as adjusted for irregularities by engineering consultant, is still low. BACKGROUND On November 21, 1974, the cities of Littleton and Englewood, Colorado, opened bids for the construction of a wastewater treat- ment plant which was to be financed in significant part by Federal grant funds made available by the Environmental Protection Agency (EPA). The apparent low bidder for the general construction contract was the Centric Corporation (Centric). Centric's bid contained three subcontractor bids from Air Products and Chemicals, Inc., Union Carbide Corporation, and FMC Corporation for the design, engineering and construction of the oxygen generation and dissolution supply subsystem for the plant. -1-

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