BNUMBER:  B-277173.2 
DATE:  October 15, 1997
TITLE: Gulfstates Industries, Inc., B-277173.2, October 15, 1997
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Matter of:Gulfstates Industries, Inc.

File:     B-277173.2

Date:October 15, 1997

K. C. Tsambis for the protester.
Charles D. Raymond, Esq., Harry L. Sheinfeld, Esq., and Gary E. 
Bernstecker, Esq., Department of Labor, for the agency.
Linda C. Glass, Esq., and Paul I. Lieberman, Esq., Office of the 
General Counsel, GAO, participated in the preparation of the decision.

DIGEST

Contracting agency properly allowed correction of a mistake in the 
awardee's low bid where the awardee presented clear and convincing 
evidence of the existence of the mistake and of the intended bid 
price, within a narrow range of uncertainty, and the bid remained low.

DECISION

Gulfstates Industries, Inc. protests the award of a firm, fixed-price 
contract to THL Enterprises, Inc. by the Department of Labor under 
invitation for bids (IFB) 
No. 97-DAA-16-JC for the removal and replacement of specified roof 
systems and damaged decking and certain associated repairs at the 
Jacksonville Job Corps Center.  The protester contends that the agency 
improperly permitted THL to correct a mistake in its apparent low bid. 

We deny the protest.

Of the seven bids received at the January 28, 1997, bid opening, THL's 
bid of $195,000 was apparently low, and the Gulfstates bid of $356,860 
was third low.  The second low bidder was allowed to withdraw its bid 
based on a mistake.  The  government estimate for the project, as 
stated in the IFB, was $250,000 to $500,000.

Because THL's bid was substantially lower than the government estimate 
and the other bids, the project architect requested, on January 29, 
that THL verify its bid.  In response, by letter of the same date, THL 
stated that it had made a clerical mistake in its bid, and that its 
intended bid was $295,000.  By letter to the agency of January 30, THL 
requested correction of its bid to $295,000 and enclosed a cost 
breakdown to demonstrate the clerical error and bond documents to 
support the intended $295,000 bid.  THL's cost breakdown indicated a 
total cost of $290,439.82, without any entry for profit, and the 
enclosed power of attorney for the bid bond states that the bond for 
20 percent of the bid, not to exceed $59,000, was based on a contract 
amount "estimated at $295,000."  On the basis of that documentation, 
the agency determined that THL had, in fact, made a correctable 
clerical error and allowed bid correction to $295,000 before awarding 
THL the contract on May 22, 1997.  

On May 23, Gulfstates filed a protest with the agency objecting to 
this determination.  The agency denied the protest by letter dated 
June 24 and Gulfstates subsequently filed this protest with our Office 
on July 7.  

An agency may allow upward correction of a low bid before award where 
there is clear and convincing evidence establishing both the existence 
of the mistake and the intended bid.  Federal Acquisition Regulation 
(FAR)  sec.  14.407-3(a).  Whether the evidence meets this standard is a 
question of fact, and our Office will not question an agency's 
decision based on this evidence unless it lacks a reasonable basis.  
Maple Constr. Co., Inc., B-270073, Feb. 6, l996, 96-1 CPD  para.  43 at 2.  
Work papers, including computer generated spreadsheets, may constitute 
clear and convincing evidence if they are in good order and indicate 
the intended bid price, and there is no contravening evidence.  The 
exact amount of the intended bid need not be established, provided 
that there is clear and convincing evidence that the amount of the 
intended bid would fall within a narrow range of uncertainty and would 
remain low after correction.  Id. 

The thrust of the protester's comments on the agency report is that it 
objects to any post bid opening correction as unfair because it is not 
possible that "any evidence [can] be clear and convincing after the 
bids are open."  However, as noted above, the FAR permits correction 
after bid opening and before award if there is clear and convincing 
evidence of the mistake and of the intended bid; further, FAR  sec.  
14.407-3(g)(2) provides that in determining whether there is such 
evidence, the contracting officer should obtain from the bidder and 
consider statements and all pertinent evidence such as worksheets and 
any other evidence that establishes the existence of the error and the 
bid actually intended.  The protester's objection simply fails to 
recognize the propriety of the method established by the FAR to permit 
bid correction.

Here, in support of THL's claim that it made a clerical error of 
entering $195,000 rather than the intended $295,000 as its price 
entry, THL submitted computer generated cost breakdown spreadsheets, 
which appear to be in good order, showing that THL's calculated costs 
total $290,439.82.  THL's 20-percent bid bond in the amount of $59,000 
is based on an estimated bid of $295,000 and provides evidence of both 
the existence of a mistake and that the intended bid was $295,000.  
The agency determined that this material provided a reasonable basis 
to permit THL to correct its bid price, since there was clear and 
convincing evidence establishing both the existence of the mistake and 
the intended bid.  In our view, the cost spreadsheets coupled with the 
$59,000 bid bond and the associated power of attorney indicating an 
estimated bid of $295,000, provide clear and convincing evidence of 
the existence of a mistake and that the intended bid falls within 
$290,439.82 and $295,000, a narrow range of uncertainty in which THL's 
bid remain low.  Cf. McInnis Bros. Constr., Inc., B-251138, Mar. 1, 
1993, 93-1 CPD  para.  186 at 5-7 (considering spreadsheets in reviewing 
propriety of correction); Clear Maintenance Corp., B-207607, Aug. 23, 
1982, 82-2 CPD  para.  167 at 3 (bid bond may be considered in ascertaining 
intended bid).  Under these circumstances, the agency's decision to 
permit THL to correct its bid was reasonable.

The protest is denied.

Comptroller General
of the United States