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B-222681 1 (1986-07-23)

handle is hein.gao/gaobadmjy0001 and id is 1 raw text is: L The Comptroller General of the United States Washington, D.C. 20548 Decision Matter of Department of the Interior--Mistake in Bid Claim File: B-222681 Date: July 23, 3986 DIGEST Correction of bidder's mistake in computing the price for quarrying 500,000 tons of riprap (large rock) is appropriate where: 1) the bidder mistakenly applied a subcontractor's orally quoted price to the required amount of riprap instead of to the subcontractor's estimate of 825,000-865,000 tons of rock material necessary to yield the required riprap; and 2) the corrected bid (even using 865,000 tons) is significantly lower than the next low bid. Since the tonnage to which the bidder would have applied the subcon- tractor's quoted price is uncertain, correction is limited to the bottom of the range of uncertainty (825,000 tons). DECISION The Department of the Interior (Interior) requests review of a mistake in bid claimed by K2B Constructors, Inc. (K2B) under invitation for bids (IFB) No. 5-SI-60-01490. The IFB was issued by Interior's Bureau of Reclamation for the quarrying, hauling, and stock-piling of 500,000 tons of graded riprap plus additional amounts of waste rock at the Buffalo Bill Reservoir, Cody, Wyoming. Riprap is large rock material of minimum sizes set forth in the IFB. Interior states that before the award, K2B alleged that it misunderstood a subcontractor's quotation for a portion of the work, but agreed to perform the contract at its bid price with the stipulation that the matter be reviewed by the Comptroller General. Interior has recommended that correction be allowed. We find that K2B's contract should be reformed to correct the mistake. Six bids were received in response to the IFB, ranging from K2B's low bid of $6,406,180 (after correction of an extension error) to $13,007,364. K2B's bid price is 14 percent below the government's estimate of $7,459,250 and $2,267,720 (26 percent) below the next low bid. The alleged mistake involved only the IFB's line item covering the quarrying of 500,000 tons of riprap. K2B offered a unit price of $6.99 per ton and an extended price of $3,495,000. K2B alleges that these prices were based in part on a subcontractor's oral quotation of $1.40 per pay ton, which K2B misunderstood to mean $1.40 for each ton of the required amount of riprap rather than for the total tonnage of rock

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