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Decisions Of The Boards Of Contract Appeals

Monday, May 04, 2009 05:29 pm

Decisions Of The Boards Of Contract Appeals WHAT'S YOUR BOTTOM LINE? BID CAREFULLY ON EACH LINE ITEM WHEN SUBMITTING A PROPOSAL Clerical MistakeBid Protest Appeal of: Osborne Construction Company; Under Contract No. DACA8501C0026 Armed Services Board of Contract Appeals 2009 ASBCA No.55030(February 19, 2009)

You must bid carefully on each line item when submitting a proposal, since deletion of a line item could impact your bottom line.When the United States Army Corps of Engineers (Corps)unilaterally deleted demolition work from its contract with Osborne Construction Company (Osborne)the parties disagreed on the amount of money to be refunded for the reduction in work.

In July 2001 the Corps issued a request for proposals (RFP)for a firm, fixedprice contract for the revitalization of family housing at Fort Wainwright.The work included demolition of two subdivisions, followed by design and construction of replacement housing.There were 15 items listed in the RFP, including eight base items and seven optional items.Offerors were instructed to submit lump sum proposals for each item on the schedule.

The RFP included Federal Acquisition Regulation clause 52.2151(FAR 52.2151), which stated that the Corps reserved the right to make multiple awards if the Corps determined that it was in the government's best interest.Since the government could delete line items and award them as separate contracts at its discretion, it was important that the proposed price for each line item was accurate.

Osborne submitted a proposal in September 2001 for approximately $22.6 million, including separate lump sums for each line item.Osborne listed $425,000 for line item 5, which contained demolition work at the Southern Cross location, and $55,000 for line item 6, which contained the Southern Cross site work.Osborne also listed $700,000 for the demolition work at the North Town location contained in line item 7, and $110,000 for the North Town site work contained in line item 8.

Osborne relied on subcontractor estimates when preparing its proposal.The subcontractors did not assign separate dollar values to each line item demolition project. Osborne arbitrarily apportioned costs among the demolition line items, ba [...]

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