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B-191630 1 (1978-06-08)

handle is hein.gao/gaobadgdj0001 and id is 1 raw text is: I 4 I -1. -. . it/ T a. DECIION FILE: S-191630 'THE COMPTROLER. 5EIERAL O P THE UNITED STATES WASHIN TON, r.c0. . 30548 40 ti DATE: June 8, 1978 MATTER rw: A.L.M. Construc.'Ion Company DIGEST: Where correct Governament estiaate for projedt shoul'd have been more than 100- percent higher than only-bid received, contracting officer should have-requested sole bidder to verify bid; thereforo award based on erroneous bid should be rescinded. :.This decision is in response to a letter of April 3, 1978, from .he Departmelitvof Health, Education, and Welfare, (HEW), recommending that its dontract with A.L.M. Construction Company (ALM) be rescinded as requested by the contractbr because of a mistake in hid. p Invtation for bids (IFB) No. 181770031 was issued on August 1I 1977', for construction work at the Indian Health Service Hospital (ISH), Pine Ridge, South Dakota. This work included the installaLior of a new elevator. On September 15, 1977, the conract was awarded to ALM, the onlybidder. ALM.subsequently discovered an error in the quotation from one of its subcontractors concern- ing the cost of the elevator. ALM's bid on the contract was $64,869. The Govern- ment's estimate of $83,256 was approximately 28 perce'nt higher than ALM's hid. eBoth,of these prices 'were cal- culated in part on the Carter)Eevator Compapy's (Carter) quotatton.for-the installh'ion' of a new eleator. Appar- ently,there was a misunderstanding regarding two separate elevator projects at Pine Ridge being bid upon, one at the Vine Ridge Government Center anfl one at the Pine Ridge.HospitaI. In preparin the Government's estimate for thkase two projects, an architect spoke with Carter and discushed a hydraulic-type elevator. The architect was referring to the elevator for the Pine Ridge Govern- ment Center. Carter estimated.this elevator to cost $33,000. The architect later questioned Carter concerning -1w- :- j 4W Ai ' *.1~ a s.. - ..~*. *% '.'~ ...- C, * * - . b-*~ - - I I & I I , II

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