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B-186267 1 (1976-05-12)

handle is hein.gao/gaobaddne0001 and id is 1 raw text is: 0XILER c, STHE COMPTROLLER GENERAL DECISION . . OF THE UNITED STATES a . WASHINGTON, D.C. 20548 FILE: B-186267 DATE: May 12, 1976 MATTER OF: Charles E. Weber & Associates DIGEST: Contractor's request for an increase in contract price on grounds that its bid price did not include labor costs of subcontractor may be granted since contracting officer should have been on constructive ,notice of possible error in bid before award, where low bid was 23 percent below Government estimate and 48 percent below next low responsive bid, and there is no doubt as to intended bid. Consequently, contract may be reformed as administratively recom- mended to reflect intended bid. This decision is in response to a request from the Director, Supply Service, Department of Medicine and Surgery, Veterans Administration (VA) for a determination concerning the propriety of permitting correction after award of a mistake claimed by Charles E. Weber & Associates (Weber) in its bid for contract V542C-166, issued by the VA. The contract requires Weber, as successful low bidder on invitation for bids (IFB) 542-38-76, to furnish and install metal and glass partitions in building No. 1 at the VA Hospital in Coatesville, Pennsylvania. Bids were opened on February 17, 1976. Three bids were sub- mitted in response to the IFB: Weber's bid was $7,399; a second bid, which was rejected as nonresponsive for failure to provide a bid bond, was $9,984; and the third bid, the only other respon- sive bid, was $14,067. The estimate on the contract provided by the facility engineering service was $9,500. On February 24, 1976, Weber, as low bidder, was awarded the contract. By an undated letter accompanied by several worksheets notarized on March 23, 1976, Weber notified the contracting officer that the cost of labor, which totalled $1,182, had inadvertently been left out of its bid, and asked that the contract be reformed to include these labor costs, for a total price of $8,581. The contracting officer states his belief that Weber did fail to include labor costs in its original bid, and the contracting officer and the VA both recommend that favorable consideration be given to the request for a price increase. - 1 -

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