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B-186240 1 (1976-09-23)

handle is hein.gao/gaobadcye0001 and id is 1 raw text is: - L.ISR 0 ~ ~. THE COMPTROLLER GENERAL DECISION . I OF THE UNITE.D STATES WASHINGTON. D.C. 20548 FILE: B-186240 DATE: September 23, 1976 MATTER OF: J. J. Welcome Construction Company q DIGEST: 1. GAO has no jurisdiction to rule on request for increase in contract price due to alleged mistake in bid made by contrac- tor in connection with construction contract awarded by Government of American Samoa. While construction project was financed in part by Federal Highway Administration grant funds, Federal Government was not party to contract since Government of American Samoa is not Federal agency within meaning of Federal procurement laws. 2. Claim for increase in contract price due to alleged mistake in bid by contractor of grantee is not cognizable by this Office as GAO does not interfere with functions and responsibilities of grantor agencies in making and administering grants. The J. J. Welcome Construction Company (Welcome) requests an upward price adjustment in its contract awarded pursuant to a solici- tation issued by the Government of American Samoa. The above solicitation requested bids for a highway construction project which is financed in part with matching funds from the Federal Highway Administration (FHWA), Department of Transportation. Welcome submitted the low bid of $1,584,368.25. Shortly after bid opening Welcome alleged a mistake in its bid in that it failed to include mobilization costs (costs of shipping equipment from Washington State to American Samoa) of $290,000. The record indicates that while the Office of the Attorney General of American Samoa was convinced that a mistake had been made and of the amount of the mistake, the FHWA refused to fund the contract at the higher price for two reasons. First, the FHWA contended that the worksheets submitted with Welcome's bid did not establish that mobilization costs had been omitted and, second, possible alteration of the bid bond precluded that figure from being used in determining the total amount of the bid. Award was made to Welcome at its original bid price of $1,584,368.25. According to Welcome, it accepted the award at the lower price after being informed by officials of the Government of American Samoa that the contract would have to be rebid unless Welcome agreed to accept the award at the lower figure. - 1 -

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