BNUMBER: B-276201
DATE: May 21, 1997
TITLE: J. Caldarera & Company, Inc., B-276201, May 21, 1997
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Matter of:J. Caldarera & Company, Inc.
File: B-276201
Date:May 21, 1997
Paul G. Pastorek, Esq., and Sean D. Moore, Esq., Adams and Reese, LLP,
for the protester.
Newton L. Klements, Esq., Department of the Army, for the agency.
Wm. David Hasfurther, Esq., and Michael R. Golden, Esq., Office of the
General Counsel, GAO, participated in the preparation of the decision.
DIGEST
Where bidder provides in its bid conflicting information concerning
its intention to be bound to the estimated quantities of sub-item
which are subject to an equitable adjustment, the bid is ambiguous
regarding whether the bidder intends to be bound to the original or
amended estimate and was properly rejected.
DECISION
J. Caldarera & Company, Inc. protests the rejection of its bid as
nonresponsive under invitation for bids (IFB) No. DACW29-96-B-0055,
issued for the construction of a bridge over the Davis Pond Diversion
Channel at U.S. Highway 90 in St. Charles Parish, Louisiana.
We deny the protest.
The IFB, issued on June 14, 1996, required the submission of lump-sum
prices for some items and unit and extended prices based on estimated
quantities for the majority of items. After the issuance of various
amendments, six bids were opened on December 17. Caldarera's bid was
low with a total price of $8,125,978. Caldarera's bid was rejected as
nonresponsive because Caldarera did not furnish with its bid its
direct bond costs as required by the IFB for the evaluation of bids
for the small disadvantaged business concerns preference. The agency
subsequently also determined that Caldarera's bid was ambiguous with
respect to another material requirement concerning variations in
quantities. Caldarera protested the agency's determination.
To be responsive, a bid must show on its face at the time of bid
opening that it is an unqualified offer to comply with all the
material requirements of the solicitation and that the bidder intends
to be bound by the government's terms as set forth in the
solicitation. John P. Ingram, Jr. & Assocs., Inc., B-250548, Feb. 9,
1993, 93-1 CPD para. 117 at 2. If the bid is subject to more than one
reasonable interpretation, it is ambiguous and must be rejected as
nonresponsive under the rigid rules applicable to sealed bid
procurements. Sabreliner Corp., 64 Comp.
Gen. 325, 328 (1985), 85-1 CPD para. 280 at 4.
Of particular relevance here, the solicitation contained a "Variations
in Estimated Quantities" clause which provided for an equitable
adjustment in price or an extension of time on the three subdivided
items in the IFB if it was discovered during contract performance that
the actual quantity of materials required was at least 15 percent
greater or less than the estimated quantity which was bid on.
Amendment No. 0004 to the IFB changed the numbering of these items and
increased the estimated quantities for one of the items. Caldarera
acknowledged the amendment, thereby agreeing to its terms. However,
it also submitted the original page 6 of the IFB. Specifically, under
the original IFB page 6, the subdivided item identified as bedding was
originally subdivided into two subitems as follows:
Item No. Description Estimated
Quantity Unit Unit PriceEst. Amt.
0044. Bedding
0044AA.First 1,470 CY 1,470 CY
0044AB.All Over 1,470 CY 500 CY
On the amended bid schedule page which contained the renumbered item
for bedding, the agency increased the estimated quantities to 2,600
cubic yards and 1,000 cubic yards, respectively. The estimated
quantity is critical for determining when an equitable adjustment in
price or an extension of time is warranted under the IFB's variations
in estimated quantities clause. By acknowledging the amendment, but
including the unamended page 6, Caldarera created an ambiguity in its
bid as to whether it was agreeing to the lower estimated quantities of
the original IFB or the higher estimated quantities contained in the
amendment for purposes of equitable adjustment. Accordingly, we can
only conclude that on its face Caldarera's bid is not a firm
commitment to what the IFB envisions as the legal relationship between
the parties under the variations in estimated quantities clause and is
therefore nonresponsive. Harvey Honore Constr. Co., Inc., B-262071.2,
Jan. 31, 1996, 96-1 CPD para. 30 at 3.
The protest is denied.
Comptroller General
of the United States